Xavier Pinchart on navigating the defence sector as an SME

Hiraiwa is a startup developing lightweight, tactical defence systems for modern combat environments. In an interview with ASD, Hiraiwa founder, Xavier Pinchart discusses the challenges faced by defence startups in Europe, particularly concerning funding and procurement. 

Q: Can you explain the focus of Hiraiwa and what sets your solutions apart from others on the market?

Our focus is on developing ultra-portable systems with minimal dependencies, specifically designed to support soldiers operating on the front lines. Unlike many other players in the market, we are targeting the most challenging environments, where there is no electricity, no logistical support, and no personnel to carry additional equipment.  

We specialise in systems that defeat autonomous systems, including detection, identification, tracking, and suppression of aerial threats like small drones and FPV (first-person view) drones. While drones are the primary threat now, our solutions are adaptable to future threats as well.  

Q: What inspired you to start this venture?

It began with a vision and dedication, spurred by what we observed happening in Ukraine. My partner and I come from corporate backgrounds in engineering and design, but not in defence. We felt compelled to contribute to defending the progressive European society we cherish – essentially to help secure the future for our children.  

We also saw a need in the market. Many European systems are heavy, expensive, and produced in low quantities, making them inefficient for modern warfare where traditional superiority is no longer guaranteed. By contrast, there is a demand for lighter, more tactical systems – solutions that require smaller, more agile players like us to develop.  

Q: What challenges have you faced entering the defence sector as a small company?

The biggest challenge is the capital-intensive nature of this industry. Developing battlefield-ready systems requires significant upfront investment in engineering, testing, and certification before you even secure a contract or sales order.  

Unlike in other sectors, you can’t just launch a minimum viable product, attract early adopters, and secure immediate investment. Defence is more akin to a traditional industrial model – you put in substantial capital upfront with the hope of future returns. Convincing investors to back this kind of long-term approach is a hurdle, especially when other sectors promise quicker returns.  

Q: How do you address investor concerns about the long timelines in defence procurement?

It’s challenging, no doubt. Investors always ask, “Where are your sales?” But for a start-up like ours, it’s extremely ambitious to secure government or ministry of defence contracts within two years. What we need isn’t more grants – it’s contracts. Governments or institutions like the EU need to engage with SMEs by placing development and prototype orders. Even small initial orders – five or ten units – can be pivotal. They signal confidence in the product, which helps us attract further investment.  

Q: What changes in procurement policies could make the biggest difference for SMEs like Hiraiwa?

The most immediate impact would come from replacing grant systems with faster contracting processes. Governments should create ecosystems where they can identify promising technologies and place small development orders quickly.  For example, in the US, certain agencies can issue orders within six weeks. They identify an interesting technology, negotiate with the supplier, and fund rapid development for delivery within six months. This model doesn’t exist in Europe, as far as I know, but it’s exactly what we need.  

I find the US model of quick capability testing incredibly inspiring. Their agencies move fast, negotiate quickly, and provide funding to get results in a short time frame. It’s a model I’d like to see adopted here in Europe.  

If public procurement requirements make this difficult, governments could task private entities to act on their behalf. These entities could evaluate technologies, test them, and place orders with smaller players to drive innovation.  

Q: What advice would you offer to other start-ups entering the defence sector?

Start-ups should focus on finding their niche and building solutions that larger players might overlook. It’s a challenging path, but the rewards can be substantial if you’re persistent.