Van Espahbodi has spent 25 years in aerospace and defense, beginning as a congressional aide before joining Raytheon’s CEO office on foreign military sales. He later helped commercialise UK national‑lab technology and co‑founded the Starburst Aerospace accelerator, which he expanded to El Segundo, California, near SpaceX.
After selling his stake in Starburst, Espahbodi launched Generational Partners, a venture firm that invests in industrial infrastructure, manufacturing, energy and water‑desalination. The firm made its first investment in January 2023 in a North Dakota‑based drone company and has backed a total of 14 companies to date.
Espahbodi says AI has changed the economics of hardware by reducing the need for deep‑science capital and enabling software‑first business models. He does not target quantum computing or nuclear fusion, but focuses on teams that combine creative software talent with commoditised hardware and clear customer demand.
One portfolio company, Vital Lyfe, was founded by engineers who built the assembly line for Starlink user terminals. Applying the same high‑volume production approach, the startup developed a compact, AI‑assisted water‑desalination device for point‑of‑need use. The firm secured its first customers in the Defense Health Agency and U.S. Special Operations Command, demonstrating a model that replaces bulk water shipments with on‑site production.
Another example is a spin‑out of the team that created SpaceX’s autonomous drone ships. Using AI‑driven station‑keeping software, the company retrofits legacy tugboats and barges, adding digital controls and global communications enabled by Starlink. The effort illustrates how SpaceX alumni are applying aerospace‑grade software to commercial maritime logistics.
Espahbodi observes a growing influx of software‑focused investors—some previously active in beauty or consumer goods—who are now seeking exposure to hardware and defense tech. He attributes the shift to Southern California’s concentration of mechanical‑engineering talent and the democratization of AI tools that lower development costs.
Generational Partners continues to scout for ventures that invert traditional capital‑intensive models, leveraging AI to create defensible products and new revenue streams across hard‑tech sectors.
