Navy Seal to maritime founder with Joe Wolfel from Terradepth

Introduction (0s)

• Despite covering 71% of the Earth, the ocean floor remains largely unexplored. Mapping its geological features is crucial for various stakeholders, including companies developing offshore wind farms and the Navy.
• Joe Wolfel, CEO and co-founder of Terradepth, is working to address this challenge by developing autonomous systems for high-resolution, scalable data collection in the deep ocean.
• Wolfel's interest in the ocean stemmed from his time in the Navy, even though he grew up in Chicago, far from a large ocean. He sought a different experience and found it in the Navy.

Robotics role in mapping the ocean (2m7s)

• Terradepth's mission is to improve human decision-making regarding the ocean by providing better data. The ocean is a vast and largely unknown space, and this lack of knowledge leads to suboptimal decisions. Terradepth aims to change this by providing high-resolution data about the ocean floor.
• The idea for Terradepth came from the Navy SEALs' experience with the ocean's unforgiving nature. Joe Wolfel, the founder of Terradepth, and his co-founder, Jud Kaufman, both served in the Navy SEALs and learned firsthand about the challenges of operating in the ocean. They realized that the lack of accurate data about the ocean floor was a major obstacle to safe and effective operations.
• The need for better ocean floor mapping became apparent after a US Navy submarine collided with an underwater mountain in 2005. This incident highlighted the limitations of existing ocean floor data, which is often based on extrapolated information from wave height. Terradepth aims to provide much higher resolution data, which will be crucial for a variety of applications, including navigation, resource exploration, and environmental monitoring.

Scaling maritime data collection (8m49s)

• Joe Wolfel, founder of Terradepth, explains how his company is tackling the challenge of scaling maritime data collection. The idea originated from a conversation with Seagate about consolidating the ocean geospatial data delivery chain.
• Terradepth's approach involves a holistic perspective and vertical integration, investing heavily in hardware and robotics to massively scale ocean data collection capabilities. They also aim to radically improve the user experience with ocean data, moving away from the current cumbersome process of data collection, storage, and access.
• Terradepth has developed a software architecture called Absolute Ocean, which allows users to easily upload, download, visualize, share, and keep private ocean data. This platform is commercially available to government entities and other stakeholders.
• The company also deploys commercially available autonomous robotic assets for ocean data collection, currently requiring human supervision. However, Terradepth is working on minimizing the need for human intervention by developing self-recharging drones that can operate in teams and replicate the functionalities of surface vessels.
• These self-recharging drones are equipped with onboard data processing capabilities and can navigate using acoustic pings to correct their inertial navigation systems, ensuring accurate data collection even in the depths of the ocean.

Fundraising challenges for hardware companies (15m47s)

• Terradepth is actively testing its submersibles and has a product in market while developing future technologies. They are intentional about getting customers right away and learning from real-world experience. This approach allows them to iterate quickly and improve their products.
• Fundraising for hardware companies is challenging, especially in the maritime sector. Venture capitalists are often hesitant to invest in hardware-enabled plays, preferring software-focused companies. Terradepth is one of the few companies that has successfully secured venture funding for a maritime venture.
• The narrative around government and defense technology is shifting. While there was previously a reluctance to invest in companies that could sell to the government, there is now more interest in companies that have both commercial and government applications. However, the actual uptake of these investments is still lagging behind the narrative shift.
• Terradepth's software platform, while valuable, has also presented fundraising challenges. Investors are hesitant to invest in a software platform that relies on a hardware product that is still under development. This creates a "chicken and egg" problem, as the software market is slow-growing and not attractive to venture capitalists. Terradepth's approach of vertical integration, while necessary, also adds complexity and requires a specific type of leadership to manage.

Transitioning from Navy to entrepreneurship (21m57s)

• Joe Wolfel, co-founder of Terradepth, never envisioned himself as an entrepreneur while serving in the Navy SEAL teams. His focus was solely on his duties, and he didn't consider life beyond the military. However, after getting married and with the war slowing down, he began exploring the world of business.
• Wolfel believes that Special Operations experience naturally lends itself to entrepreneurial endeavors due to the emphasis on small team work, ambiguous situations, and problem-solving. He highlights that the selection and assessment processes in Special Operations cultivate these traits.
• Wolfel's transition to entrepreneurship was facilitated by his involvement with the McChrystal Group, a company founded by a former general he worked with. This company focused on applying lessons learned from military Special Operations to the commercial world, providing Wolfel with a valuable platform to reflect on his experiences and prepare for a career outside the military.

Data-driven decision making (24m13s)

• Decision-making and risk management are crucial for entrepreneurs. Joe Wolfel emphasizes the importance of making decisions in the face of risk and ambiguity, and then adjudicating those risks to move quickly. He believes in balancing leadership (inspiration) with management (control) to operate with the right amount of risk while being responsible to shareholders and executing effectively.
• Hiring diverse teams with a mix of domain expertise and domain ignorance fosters innovation. Wolfel believes in creating cohesion while avoiding groupthink by bringing in fresh perspectives from outside the maritime tech industry. He prioritizes learning agility and teamability over specific technical skills, as demonstrated by hiring a developer with a master's in chemistry who learned coding through self-study.
• Terradepth is disrupting the traditional approach to maritime data collection and analysis. The current market is accustomed to long wait times for data, but Terradepth offers a faster and more collaborative approach. By involving end-users earlier in the process, they can gain multiple perspectives and make more informed decisions. This requires a shift in mindset and the creation of economic incentives for data sharing.

Finding the right customer base (29m43s)

• Terradepth's customer base extends beyond defense and government agencies to include commercial industries. The company focuses on providing high-resolution geophysical data, which is valuable for various applications like offshore wind energy, oil and gas pipeline management, and aquaculture.
• The company sees potential for growth in the climate and conservation sectors. By characterizing the ocean floor and water column, Terradepth's data can contribute to a better understanding of climate change and weather patterns.
• Terradepth's team and their commitment to solving a challenging problem are key motivators. The company's success in developing a game-changing technology for ocean data collection and analysis has boosted confidence and solidified their belief in the project's potential.

Host discussion (35m14s)

• The hosts discussed the fact that we have only mapped about a quarter of the ocean, despite the common misconception that we have mapped 50%. They were surprised to learn that even the Navy, which one would assume has access to classified information, has encountered challenges like submarines colliding with unmapped underwater mountains.
• They were impressed by Terradepth's intentional approach to building a company, focusing on developing a product that could be sold immediately while also working on long-term deep tech solutions. This contrasts with many other companies in the climate space that focus on future applications without a clear revenue stream.
• The hosts found Joe Wolfel's perspective on leadership and management particularly insightful. He emphasized the distinction between the two, highlighting that great leaders are not always great managers and vice versa. They discussed the importance of recognizing these qualities within oneself and finding co-founders who complement one's strengths. They also appreciated his candidness about the importance of self-belief and "arrogance" in pursuing ambitious goals.