Innovators! If you know of a startup enterprise in the aerospace or defense industries looking for investments, you may want to get to know RTX Ventures.
A subsidiary of aerospace giant RTX Corporation, RTX Ventures is a three-year-old venture capital firm with a unique approach, noted Executive Director Roman Mueller. He described how the firm seeks companies to provide investment funding.
Relatively new to the venture capital scene, RTX Ventures invests in five to 10 companies per year. But its approach is different from traditional venture capital. Rather than focusing on internal innovation, RTX Ventures is dedicated to fostering innovation outside the company’s walls. This external focus is split evenly between commercial aerospace and defense, setting them apart from other corporate venture investors, Mueller said.
Mueller believes RTX Ventures is uniquely positioned to have a significant impact, with business units like Collins Aerospace and Raytheon under the RTX umbrella. Its mission: invest in early-stage companies that aim to transform the aerospace and defense sectors, but do so by investing capital for equity stakes in those businesses. This ensures that for every dollar RTX Ventures invests, $16 comes from other investors, a telltale sign of RTX Ventures’ co-investor model.
Beyond financial commitment, RTX Ventures connects startups with RTX’s vast resources, including access to engineers and industry and technology experts, facilitating productive partnerships, Mueller added. The firm covers a broad spectrum of technologies, from propulsion and advanced materials to AI and electrification. Although its team is only six people, they manage to cover the entire technology portfolio of their parent company, RTX.
One of their greatest strengths, Mueller noted, is their speed. They can move from introduction to investment in as little as three weeks, thanks to strong support from executive leadership, management, and other stakeholders.
Further, a dedicated program portfolio function ensures that RTX Ventures actively manages and collaborates with startups to explore partnerships, Mueller explained. This approach replaces the ineffective so-called “email and a prayer” method traditionally used. While an investment from the firm does not guarantee a partnership right away, it does provide startups with an advocate within the company to seek out collaborations.
Another big advantage is that RTX Ventures positions itself as both a financial and strategic investor, Mueller said. And they are not interested in mergers and acquisitions. Their co-investor approach means they support other ventures and understand that their portfolio’s strength relies on those co-investors as well.
RTX Ventures does have investment criteria. They look for strategic alignment with RTX’s priorities and attractiveness to other investors. They seek teams that are adaptable and willing to learn (sponges, not rocks, Mueller commented), and are developing products that solve real problems for which people are willing to pay. Why? Because that ensures a sizable market in a competitive landscape.
For a startup, the benefits are clear: access to capital, resources, mentorship, and credibility. For RTX, these investments support innovation outside their company and offer potential financial returns. The firm evaluates about 1,000 companies annually, investing in about 1% of them, maintaining a portfolio of around 21 companies.
Mueller concluded that RTX Ventures is carving out a niche in the aerospace and defense sectors by focusing on external innovation, strategic partnerships, and a co-investor model, making it uniquely worthy of consideration for startups.
