The U.S Government is Literally Paying People To Start Businesses in 2026

One of the things I enjoy most about interviewing entrepreneurs in the government contracting space is hearing the stories behind the technology. It's one thing to build a great product. It's another thing entirely to build something that solves a real problem for the federal government while navigating one of the most complex procurement systems in the world. 

That's exactly what happened when I sat down with John Martin, CEO of Bundle AR.

John's journey is a perfect example of what persistence, innovation, and a willingness to learn the government contracting process can accomplish. Over the past eight and a half years, he and his team have transformed Bundle AR from a no-code augmented reality content platform into a powerful operational intelligence solution that's helping military personnel train faster, retain more information, and perform their jobs more effectively.

Along the way, they've successfully leveraged the Small Business Innovation Research (SBIR) program, worked directly with Department of Defense stakeholders, secured millions of dollars in funding, and continued evolving their technology based on real feedback from the people using it in the field.

Their story also reinforces something I tell people all the time about government contracting: success doesn't happen because you submit one proposal. It happens because you keep learning, keep improving, and keep showing up.

Building Technology That Solves Real Military Problems

When John first launched Bundle AR, the vision was relatively straightforward.

The company created a no-code augmented reality content management system that allowed organizations to build interactive AR experiences without needing software developers.

While the platform had clear commercial applications, John quickly realized the Department of Defense represented an enormous opportunity.

Military organizations rely heavily on technical procedures, equipment maintenance, operational training, and knowledge transfer.

Historically, much of that information has been delivered through printed manuals, lengthy technical documentation, or classroom instruction.

The problem is that today's warfighters don't learn the same way previous generations did.

They expect interactive learning.

They consume information through video.

They learn by doing rather than simply reading.

Instead of asking service members to flip through hundreds of pages of technical manuals, Bundle AR allows them to visualize equipment in three dimensions, follow step-by-step instructions, watch subject matter experts perform procedures, and interact with digital content directly from mobile devices or XR headsets.

It's a fundamentally different approach to military training.

Why the SBIR Program Became a Game Changer

One of the biggest reasons Bundle AR has been able to grow is because of the SBIR program.

I've said many times that SBIR remains one of the best opportunities available for innovative small businesses looking to break into government contracting.

It provides non-dilutive funding that allows companies to develop technology specifically designed to solve government problems while retaining ownership of their intellectual property.

John's company progressed through the traditional SBIR phases, beginning with early research and development before moving into larger development efforts.

Like many companies, however, they experienced firsthand how unpredictable government funding can sometimes be.

When Congress delayed SBIR reauthorization and portions of the government shut down, funding slowed considerably.

For many businesses, delays like these create uncertainty.

Instead of walking away, John continued refining the technology, submitting proposals, and positioning the company for future opportunities.

That persistence eventually paid off.

Bundle AR secured a Tactical Funding Increase (TAC-FI) worth approximately $1.9 million, allowing the company to significantly expand its platform and integrate extended reality wearables into its existing solution.

That funding represented much more than additional capital.

It validated years of product development and demonstrated that government customers saw real operational value in what the company had built.

Technology Is Only Half the Equation

One thing I appreciated during our conversation was John's emphasis on spending time with actual military users.

Far too many companies build products in conference rooms.

They assume they know what customers need.

Government contracting doesn't work that way.

The companies that consistently succeed spend time talking with contracting officers, program managers, and end users.

John and his team visited military installations.

They demonstrated the technology.

They watched service members use it.

They asked questions.

They listened carefully to feedback.

Those conversations shaped future versions of the platform.

Features weren't added because someone thought they looked impressive.

They were added because military personnel said they would make training easier, improve operational readiness, or help accomplish the mission more effectively.

That's exactly how innovation should work.

Beyond Augmented Reality

One thing that stood out during our discussion is that Bundle AR has evolved far beyond what most people think of when they hear the term "augmented reality."

John now describes the platform as an operational intelligence system.

That's an important distinction.

Rather than focusing on one piece of technology, the platform combines multiple forms of knowledge delivery into a single experience.

Users can access:

• Interactive 3D models
• Step-by-step maintenance procedures
• Embedded training videos
• Technical documents
• Digital workflows
• Extended reality experiences
• Mobile applications
• Artificial intelligence capabilities

The goal isn't simply to create impressive graphics.

The goal is to deliver the right information to the right person at exactly the moment they need it.

Whether someone is wearing XR glasses, using a tablet, or accessing a smartphone in the field, the information remains available and easy to understand.

Training for the Real World

Military operations don't always happen where internet access is available.

That's one of the realities many commercial software companies overlook.

John explained that Bundle AR addresses this challenge by allowing knowledge "bundles" to be downloaded directly onto devices.

That means personnel operating in remote or disconnected environments still have access to mission-critical information without relying on an active network connection.

When connectivity returns, the platform can synchronize updates and integrate with live operational data.

It's a practical solution built around how military operations actually work rather than how software developers wish they worked.

The Opportunity Goes Far Beyond Defense

Although defense remains a major focus, one of the most exciting aspects of Bundle AR is its flexibility.

The same technology that helps soldiers maintain equipment can also support healthcare professionals, educators, manufacturers, and enterprise organizations.

John shared examples of healthcare applications where immersive technology is being used for dementia training and patient education.

Educational institutions are exploring similar approaches for interactive learning.

Manufacturers can use digital twins to improve maintenance training and operational efficiency.

This is something I often encourage technology companies to consider.

Government funding can accelerate innovation that eventually creates entirely new commercial markets.

A successful government contract doesn't have to be the end goal.

It can become the catalyst for much broader business growth.

The Future of SBIR Funding Is Getting Bigger

One of the topics we discussed was the evolution of SBIR itself.

Many people are familiar with the traditional Phase One and Phase Two awards.

What's changing now is the introduction of larger funding mechanisms designed to help companies bridge the gap between research and full-scale commercialization.

Programs such as the Strategic Breakthrough Award and STRATFI represent a major shift in how the government supports emerging technology companies.

Instead of providing relatively modest research funding, these newer initiatives can potentially provide tens of millions of dollars to help mature technologies and accelerate deployment.

For companies that have already demonstrated technical success, these expanded funding opportunities could significantly reduce the time required to bring innovative solutions into operational use.

Modern Training Has to Be Written Into the Requirements

One insight John shared that I think deserves more attention involves how government requirements are written.

Even if innovative training technology exists, contractors often default to traditional paper manuals unless solicitations specifically require modern learning solutions.

That's why market research and early engagement matter so much.

Companies need to educate program managers and contracting officers about what's possible before solicitations are finalized.

When acquisition requirements specifically call for immersive training, digital twins, or XR-enabled instruction, innovation has a much greater chance of making it into the final contract.

This is another reminder that successful government contracting begins long before the Request for Proposal is ever released.

Relationships Continue to Matter

Technology alone doesn't win government contracts.

Relationships still matter.

John spoke openly about learning the acquisition process, understanding different funding programs, working with experienced consultants, and building relationships across multiple agencies.

That's advice I couldn't agree with more.

Government contracting is rarely a solo effort.

The most successful companies build teams.

They surround themselves with experts.

They seek mentorship.

They partner with consultants who understand specialized programs like SBIR, TAC-FI, STRATFI, and other government funding pathways.

No one knows everything.

The companies that continue growing are usually the ones willing to learn from people who've already walked the path.

Final Thoughts

John Martin's journey with Bundle AR is a great example of what's possible when innovative technology meets persistence and a deep understanding of government contracting.

Over the past several years, his company has evolved from an augmented reality startup into a provider of operational intelligence solutions that help military personnel learn faster, work more safely, and perform more effectively.

That growth wasn't fueled by luck.

It came from listening to customers, continually improving the product, learning how the federal acquisition process works, and taking full advantage of programs like SBIR to fund innovation.

As immersive technologies, artificial intelligence, and digital learning continue to reshape industries, I believe we're only beginning to see what's possible inside the federal marketplace.

For entrepreneurs willing to solve real government problems, engage directly with end users, and stay committed through the inevitable challenges of the contracting process, the opportunities have never been greater.

Bundle AR is proof that with the right strategy, the right technology, and the right persistence, a small business can create solutions that make a meaningful impact—not just for the Department of Defense, but across healthcare, education, and countless other industries as well.

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