Forge Institute Launches Phoenix Xcelerator to Scale Growth of Defense Tech Startups

The Phoenix Xcelerator is an aerospace and defense-focused startup accelerator, offering no-cost, no-equity support through mentorship, curriculum, and access to a robust defense network of primes, suppliers and mission partners. 

Forge Institute is proud to announce the launch of the Phoenix Xcelerator, a pioneering program designed to empower & grow startups across the defense and aerospace sectors. Through structured programming—including a rigorous high-quality curriculum, personalized mentorship, and coaching—the Phoenix Xcelerator advances industry-informed and mission-led innovation. The program is funded in-part through a grant from the Arkansas Economic Development Commission (AEDC). 

Why Arkansas

Arkansas is home to a thriving aerospace and defense sector, made up of over 178 companies employing over 10,900 jobs. 

As reported in Federal News Network: “According to Paul Murphy Well, based on data from unclassified prime contracts, the number of defense contractors is absolutely shrinking. DOD vendors are down 27.6% over the last decade or so from over 56,000 to about 41,000.”

As reported in Inside Defense: “At the same time Farooq Mitha, Director of the Department of Defense (DoD) Office of Small Business Programs (OSBP), was recently quoted as saying “the total number of small businesses in the defense industrial base has declined over the last decade.”

The Phoenix Xcelerator aims to reverse this trend by supporting startup businesses dedicated to addressing the unique challenges of the defense sector, fueling Arkansas's role in national security and solidifying our position as the arsenal of democracy. 

“The Phoenix Xcelerator builds on Forge Institute’s proven track record of developing high-quality, purposeful programs to meet our business and mission partner needs and my experience in building national and internationally recognized accelerator programs,” said Lee Watson, Chairman and CEO of Forge Institute. “With this initiative, we are bringing world-class expertise and resources to entrepreneurs, equipping startups to tackle critical national security challenges all while solidifying our state’s leadership in defense innovation and economic growth.”

According to the Arkansas Economic Development Commission (AEDC) (2024 S&P Global), “Aerospace & Defense exports made up over 13% of the state’s total exports in 2023 with over $850 million in goods exported, making it the state’s leading export.” The Phoenix Xcelerator is the first entrepreneur/startup focused program in Arkansas to support our state’s #1 export. 

Additionally, “the total value of Little Rock Air Force Base’s economic impact was reported as $1.38 billion in 2023,” according to the LRAFB FY 2023 Economic Impact Report.

With leading aerospace companies like Lockheed Martin, Dassault Falcon Jet, Raytheon, and Aerojet Rocketdyne calling Arkansas home, the state is well-positioned to foster a new wave of defense innovation. The Phoenix Xcelerator supports this robust ecosystem, developing a skilled workforce and expanding Arkansas’s defense capabilities by advancing innovation, workforce development, and economic resilience. 

Program Objectives 

The Phoenix Xcelerator is a 12-week intensive program designed to empower entrepreneurs to grow in the defense and aerospace sectors. Participants gain comprehensive support to validate business models, develop go-to-market strategies, and create minimum viable products (MVPs) or prototypes. They will also be guided in submitting non-dilutive funding proposals, such as SBIR/STTR, BAA, OTA, or other grants, and access to capital networks to enhance the potential for sustained growth.

For established companies, the Phoenix Xcelerator provides pathways to transform underutilized intellectual property into profitable products and services—maximizing return on investment and boosting competitive advantage. The program also assists in evaluating dual-use markets, crafting capabilities statements, and implementing targeted growth strategies.

The program combines startup accelerator fundamentals with key defense principles, offering technical guidance on compliance, defense standards, and insights into government procurement. Participants gain access to an extensive network of industry veterans, government procurement experts, and successful entrepreneurs with real-world defense experience. Throughout the program, participants receive support in grant applications, product design, prototyping, and access to testing capabilities through specialized facilities across a national network.

Exclusive opportunities include site visits to defense and aerospace manufacturing facilities, networking events with military and industry leaders, and specialized partner activites—all designed to foster innovation that directly supports the needs of our defense mission partners.

The Phoenix Xcelerator focuses on key technology themes such as defense manufacturing, photonics, directed energy, mobility (including drone and counter-drone technologies), artificial intelligence, cybersecurity, intelligence, surveillance, reconnaissance (ISR), direct fires, and other technologies critical for mission readiness.

 A Call to Entrepreneurs 

Entrepreneurs and startups interested in advancing dual-use technologies, such as photonics, directed energy, AI/ML, cybersecurity, drone and counter-drone tech, ISR and other defense related solutions, are encouraged to apply. All participants must be U.S. Citizens. By participating in the Phoenix Xcelerator, founders gain access to exclusive resources, high-impact mentorship, and growth opportunities that drive the defense sector forward. 

Entrepreneurs, innovators, corporate partners, investors, sponsors, or mission owners  interested in learning more about the Phoenix Xcelerator should visit  https://www.forge.institute/phoenix-xcelerator or email innovation@forge.institute. 

Key Facts

• Startups will gain access to high-quality curriculum, personalized mentorship, and access to a trusted network of defense contractors & mission partners.

• Funding is provided in-part by the Arkansas Economic Development Commission (AEDC).

• Program participants will also gain exclusive access to leading aerospace & defense prime contractors and tour defense manufacturing facilities normally closed to the public.