Sec. Driscoll: Army launching Silicon Valley-style model to accelerate modernization
NewsOctober 13, 2025
WASHINGTON, D.C. The U.S. Army is overhauling its acquisition process with a model that resemblles Silicon Valley in order to cut procurement timelines from years to weeks and contract directly with startup firms to deliver new technologies to soldiers, Secretary of the Army Daniel Driscoll announced Monday during his keynote at the AUSA 2025 conference.
Driscoll described a new capital program designed to identify emerging technologies, fund prototypes, and field minimally viable products through soldier-led testing. The model, he said, draws on the venture capital ecosystem to promote agility and reduce barriers for first-time defense contractors.
"I did a full circle after seeing the power of combining venture capital money mentorship with startup culture," he said. "I can say unequivocally that the Silicon Valley approach is absolutely ideal for the Army. So last month, we launched these the Army's new cradle-to-grave capital funding project. It will identify promising startups, quickly fund them, and get minimally viable products to soldiers and geeks."
The Army allocated $750 million to the initiative for fiscal year 2025 and plans to increase that funding next year, he said. The service also unveiled the XTech Disrupt competition, a “Shark Tank”-style pitch event where startups will compete for contracts of up to $500,000 and move from concept to soldier testing within 60 to 70 days.
Driscoll said the effort aligns with broader reforms to consolidate program executive offices under a single acquisition organization that reports directly to Army leadership. The goal is to eliminate redundant oversight and transition from the traditional 12- to 18-month contracting cycle to a model based on modularity, open architectures, and continuous iteration, he said.
The new structure, he added, is intended to allow the Army to adopt commercial development practices common in the technology sector, integrating digital engineering, software-driven design, and rapid prototyping to keep pace with private-sector innovation.
