In this episode of Found in the Rockies, Les Craig sits down with Arthur Karell, Partner at First In, a venture firm investing at the intersection of cybersecurity, defense tech, and data intelligence. Arthur shares his unconventional journey from international law to the Marine Corps to scaling startups and leading M&A at Anduril, before transitioning to early-stage investing. He unpacks the realities of venture returns in defense tech, the difference between strategic and tactical problems, and why First In aims to build enduring companies—not just chase flashy innovations. With sharp insight and mission-driven conviction, Arthur offers a candid, inspiring look at what it means to empower entrepreneurs who secure national freedom.
Here’s a closer look at the episode:
1. Arthur’s Career Journey
- Grew up in Arlington, VA; studied at Harvard and earned a law degree from UVA.
- International corporate law with a focus on the Foreign Corrupt Practices Act.
- Service in the Marine Corps post-9/11.
- Transitioned to startups, joining FiscalNote post-seed as one of the first employees.
2. Lessons from Operating and M&A
- Helped scale FiscalNote through aggressive M&A strategy—tucking in niche data companies.
- Applied similar playbook at Anduril, crafting their corporate development team and deals.
- How defense tech M&A must align with procurement timelines and gate reviews.
- Why successful acquisitions hinge on founder-engineer-product fit and integration.
3. Investment Philosophy at First In
- The focus on being truly “first in” to high-potential, early-stage defense tech startups.
- Strategic problems vs. tactical ones, to drive high-leverage outcomes.
- The importance of stage specificity and clear risk-reward underwriting.
- Is venture capital for every founder?
4. Industry Insights & Emerging Themes
- Tailwinds in AI applications and industrial automation across defense sectors.
- Momentum in cybersecurity as go-to-market talent shifts to early stage.
- DoD’s structural challenges—startups must work with the system, not against it.
- Arthur’s belief that the U.S. has latent industrial capacity—what’s needed is political and contracting will.
Resources:
Website: https://wearefirstin.com/
Arthur LinkedIn: https://www.linkedin.com/in/arthurkarell/
FirstIn LinkedIn: https://www.linkedin.com/company/first-in/
