Founder Challenges US Defense Industry from Athens | Innovation

A Silicon Valley Exodus: Building a Defense Company from Athens

In the summer of 2021, Dimitrios Kottas undertook a decision unusual for many engineers in Silicon Valley. Leaving his role as an engineering manager within Apple’s Special Projects Group, he returned to Athens, Greece, to establish a defense technology firm.

Delian Alliance Industries: Early Successes

Over the subsequent three and a half years, Kottas’ startup, Delian Alliance Industries, has deployed solar-powered surveillance systems along Greek borders, providing continuous monitoring. These systems also serve to detect wildfires on remote islands. Furthermore, the company has developed a range of other products, including covert sea drones intended for defensive purposes.

Challenging the European Defense Landscape

Kottas’ primary objective extends beyond individual technologies. He believes a Greek startup can successfully navigate and disrupt Europe’s fragmented defense market. This ambition appears increasingly feasible given the current heightened demand for defense technologies.

From Academic Research to Apple Innovation

Kottas’ path to Delian has been a gradual process. He initially gained recognition for his academic research at the University of Minnesota, focusing on navigation in GPS-denied environments – work that has garnered over 1,400 citations. In 2016, he joined Apple, where he spent six years developing autonomous systems utilizing cameras, lidars, and radars. While bound by confidentiality, the technologies he helped create at Apple’s secretive division significantly influenced Delian’s current development efforts.

The Core of Autonomy: Perception

“The essence of autonomy resides in perception,” Kottas clarified. He explained that machines must not only identify the location of objects but also understand their actions and intentions. “As autonomy will be central to future weapon systems, this perception technology will be the primary driver of change within the defense sector over the next decade.”

Geopolitical Influences and a Shift in Focus

Technological insight wasn’t the sole catalyst for his career change. Geopolitical events – including the Armenia-Azerbaijan conflict and observations of shifting border disputes – and the perceived weakness of European military capabilities, prompted deep concern. “I found myself unable to sleep,” he admitted.

Pragmatic Beginnings: Surveillance Towers

Instead of pursuing advanced fighter jet technology, Kottas focused on a more immediately marketable solution: surveillance towers. This strategy mirrors that of Anduril, an 8-year-old weapons manufacturer that initially sold software-enhanced surveillance towers to U.S. Customs and Border Protection.

Expanding Ambitions: Interceptigon Series

Delian’s subsequent products demonstrate greater ambition. The “Interceptigon” series encompasses concealed autonomous aerial and maritime drones and vessels, designed to remain inactive until a threat is detected.

A Novel Approach to Maritime Defense

A particularly noteworthy example is a two-meter, self-destructing vessel packaged within a cylinder. This vessel can be deployed on the seabed for months, at depths inaccessible to satellites and drones. Upon remote activation, it emerges “unexpectedly for the enemy,” according to Kottas. Delian has secured a patent for this method, utilizing readily available materials for large-scale, low-cost production.

Investor Confidence and Funding

This innovative model, unlike anything currently found in the Western defense industry, has attracted significant investment. Delian recently secured $14 million in funding, bringing its total funding to $22 million, led by existing investors Air Street Capital and Marathon Venture Capital.

Navigating the European Market Challenges

Despite Delian’s achievements, the European defense market presents substantial hurdles. Reports indicate U.S. officials are encouraging European nations to continue procuring weapons from American companies. Additionally, European countries traditionally prioritize their domestic defense industries, potentially hindering the expansion of startups like Delian.

EU Initiatives and Shifting Dynamics

“This concern is particularly pronounced in France,” Kottas conceded, but he believes the situation is evolving. He cited European Union initiatives like Safe and ReArm Europe, aimed at fostering cross-border defense collaboration, as evidence of this change.

European Success Stories

Kottas highlighted the success of companies like Portugal’s Tekever, which has achieved unicorn status, and Germany’s Quantum Systems, which competes globally. “European companies have achieved success competing with U.S. counterparts, despite having significantly less funding.”

Respectful Competition with Anduril

Regarding Anduril, Kottas expressed respect but remained undeterred. “They are a groundbreaking company that will inspire numerous founders and military leaders worldwide.”

The Early Stages of a Technological Revolution

However, he cautioned against prematurely declaring winners. “We are currently in a similar phase to 2015 for self-driving cars – predicting the ultimate victor at this stage is difficult.”

A Test Case in Germany

The question remains whether a Greek startup can persuade France, Germany, or the United Kingdom to rely on foreign technology for their national security. Kottas recently submitted a bid for a German tender, serving as a crucial test of his theory that a fragmented Europe can be unified through superior technology and competitive pricing.

A Personal Connection to the Mission

What distinguishes Kottas from many defense tech entrepreneurs is the deeply personal nature of his mission. He contrasted building weapons in New Mexico for distant conflicts with developing systems “that could potentially protect your family or neighbors.”

A European Perspective on Defense

This sentiment is shared by entrepreneurs across Europe who experience conflict as a tangible reality. It drives Delian’s focus on low-cost, rapidly deployable systems and pre-positioned technology. It may also convince other European nations that geographical proximity is more critical than nationality in defense matters.

Resilience and Efficiency in a Smaller Market

Kottas’ unconventional journey – from Athens to Minneapolis to Apple and back – demonstrates his comfort with significant challenges. He believes building a company in a smaller, fragmented market fosters resilience, efficiency, and a relentless focus on developing exceptional technology at a low price point.

“I anticipate that fragmentation will diminish in the coming years, and a strategic approach can transform it into an advantage.”