Happy Q4! If you’re new here, welcome to the Cubit Capital Quarterly Newsletter, a place to share updates on where we’ve been and where we’re headed. At Cubit, our mission is to support courageous leaders called to confront foundational problems with humility and confidence. The past few months have given us a renewed conviction on our mission, and we’re grateful for the moment to pause and reflect. From summertime travel with family to new relationships built at events in a variety of markets, Q3 gave us the time and space to sit in gratitude while simultaneously accelerating full steam ahead.
Check out more below.
New Investments
FluxCo operates as the definitive infrastructure layer for transformer procurement in the United States, providing a centralized platform that manages the entire hardware lifecycle from initial engineering specifications to leasing, service, and warranty.
Why Cubit invested?
The Problem: The Fragmented Supply Chain
Non-traditional private buyers like hyperscale data centers, solar developers, and industrial facilities are increasingly going “behind the meter” to procure transformers and critical equipment. These new buyers are forced to navigate a highly fragmented global supply chain blindly, suffering from a complete lack of centralized pricing or inventory data. Because they cannot see the full supplier landscape, these buyers regularly overpay by up to 50% and accept artificially inflated lead times.
The Solution: An AI-Powered Centralized Platform
Incubated by Brian Tochman through Trust Ventures, FluxCo seamlessly connects unsophisticated buyers with a vetted global network of over 100 manufacturing partners. The platform uses an AI-powered spec builder to translate complex project needs into compliant engineering standards, generating transparent, comparable bids. Furthermore, FluxCo unlocks a massive secondary market by providing real-time visibility into ready-to-ship, certified refurbished units.
By providing radical supply chain visibility, FluxCo has already helped early customers cut costs in half, such as sourcing a transformer for $550,000 instead of the $1.1 million previously paid. FluxCo is capturing this structural inefficiency today to aggregate the proprietary demand and pricing data necessary to eventually launch its own high-efficiency domestic manufacturing operations.
Matter Intelligence operates as a fundamental intelligence layer for Earth observation, providing a breakthrough sensor and software platform that translates invisible molecular signatures into actionable data for critical industries.
Why Cubit invested?
The Problem: The Invisible Physical World
When critical industries, such as utilities or insurance, inspect physical assets, they are limited by human vision and standard cameras. While they can see obvious physical damage, they remain completely blind to underlying chemistry, material degradation, and moisture content. This fundamental blind spot forces industries to operate reactively, waiting for catastrophic failures before taking action.
The Solution: An AI-Powered Molecular Intelligence Platform
Led by former NASA JPL engineers who designed optical instruments for Mars rovers, Matter has developed the EARTH-1 sensor, a breakthrough instrument capable of capturing over 2,000 spectral channels at a sub-50cm resolution. To process this massive amount of data, Matter utilizes a proprietary, physics-informed "Large World Model" that instantly translates complex molecular signatures into actionable intelligence via a simple API.
By revealing the true chemical makeup of surfaces, Matter equips utilities to detect microscopic corrosion before wildfires ignite, enables insurers to assess hidden water intrusion, and provides mining and defense sectors with a vital intelligence layer for a more resilient future.
Switched Source is modernizing the electric grid by unlocking dormant capacity on existing infrastructure to meet increasing power demands driven by data centers, home electrification, rising blackouts, and more.
Why Cubit invested?
The Problem: The Infrastructure Bottleneck
The U.S. energy grid is facing a massive challenge, with demand projected to push 2-5x higher on a system designed decades ago. Utilities need to add capacity while maintaining reliability and keeping costs manageable for customers. Traditional solutions, such as physically replacing poles, restringing wires, and building new substations, are effective but "painful," often costing millions per circuit and taking years to complete, putting additional pressure on utility budgets and customer affordability.
The Solution: A Smart Traffic Cop for Electricity
Led by founders Charles Murray and Lane Nelson, Switched Source offers a pragmatic, scalable alternative to the slow and expensive status quo. Their Phase-EQ device acts as a "smart traffic cop" for the grid, dynamically and autonomously rebalancing power flows to unlock 10-20% more capacity on existing lines.
Switched Source delivers a tangible fix to the electrification crisis by modernizing infrastructure 6x cheaper and 3x faster than traditional methods.
Stellios Technologies is an American deep tech company developing High-Power Microwave (HPM) systems to build a scalable shield for national security while reviving America’s high-energy power industry.
Why Cubit invested?
The Problem: The Cost Asymmetry of Drone Swarms
Low-cost, high-volume drone swarms present a unique challenge for modern air defense, defined by speed, scale, and extreme cost asymmetry. Traditional air defense systems are forced to fire multi-million-dollar interceptors to neutralize these threats. Because they were not built to address low-cost, high-density aerial threats, protecting American and allied skies with legacy hardware is economically and logistically unviable.
The Solution: AI-Accelerated High-Power Microwave Defense
Led by founder Dr. Richard Starson, a Caltech Ph.D. who previously engineered 100 kW CW gyrotron systems, Stellios is assembling a specialized team to build the next generation of American high-power microwave systems. To overcome legacy multi-year lead times, Stellios combines compact SiC-Based Power Electronics with their proprietary AI-native Genesis Platform. This compresses power-system design cycles from months to days, ultimately delivering speed-of-light engagement, an effectively unlimited electric magazine, and near-zero marginal cost per shot.
With signed commercial contracts, defense customer discussions, and U.S.-based manufacturing already underway, Stellios is moving rapidly toward field-ready systems that will not only help secure American and allied skies but also establish a unified platform for compact fusion power and advanced propulsion for decades to come.
Tektones is building premium, interlocking brick sets for the faith-based market, featuring iconic biblical narratives, such as the Nativity, Jonah and the Whale, and the Parable of the Lost Sheep.
Why Cubit invested?
The Problem: The Untouched Faith-Based Toy Market
With the continued rise of digital saturation, the rich, developmental benefits of physical, embodied experiences for children have never been clearer. The traditional champion of tactile play is LEGO, the world's largest toymaker by sales. However, LEGO generally avoids specific religious narratives in its core product lines, leaving a profound opportunity with the next generation completely untouched.
The Solution: Premium, Embodied Play
Founded by William Norvell, a courageous leader with a Stanford MBA, 10+ years in Private Equity and Investment Banking, and extensive experience co-founding Forte, Faith-Driven Investor, and Faith-Driven Entrepreneur, Tektones merges the bonding experience of physical building with the chance to teach the next generation about the Bible.
By delivering a premium, physical product into an eager market, Tektones is creating a scalable solution that offers physical and spiritual deliverables.
Portfolio Updates
In September, Kepler Computing, an investment Cubit originally made in 2022, emerged from stealth to unveil its new class of AI memory. The announcement came on the heels of the U.S. Department of Commerce signing a CHIPS Act letter of intent to provide Kepler up to $245 million.
In August, advanced manufacturing company Hadrian announced a $1.37 billion Series D at a $7.87 billion valuation to build new factories and expand production.
After becoming the first ground-autonomy company to prime a production contract for the U.S. military, Overland AI opened a new office in Burlingame, California, in August and won a $20 million Army contract for autonomous breaching in September.
In August, Elroy Air was awarded a $46 million U.S. Army contract to develop its Chaparral autonomous cargo aircraft for contested resupply.
In August, geothermal company Sage Geosystems brought its first "pressure geothermal" plant online near San Antonio, only the third enhanced-geothermal system connected to the U.S. grid.
Reframe Systems, which uses robotics to build homes faster and more affordably, closed a $40 million round in August to expand its new Massachusetts microfactory.
In July, Venus Aerospace closed a $91 million Series B and signed a joint development agreement with Lockheed Martin to mature its rotating detonation rocket engine.
In July, space defense company True Anomaly was selected to deliver its Mosaic software for the Space Force's "Kronos" program, one of the service's largest battle-management software programs of record.
In July, maritime defense company VATN Systems launched SIGURD, the first all-in-one autonomous mine countermeasure system for detecting and neutralizing naval mines, now testing with government customers.
Founder Spotlight
William Norvell - Founder & CEO, Tektones
William is the CEO of Tektones, a new faith-based building brick brand and Cubit portfolio company. Previously, he co-founded Forte, the #1 mental fitness company and also a Cubit portfolio company, raising over $5 million to build it. He has worked with organizations such as Sovereign's Capital and co-founded Faith Driven Entrepreneur and Faith Driven Investor and is a member of the Christian Economic Forum. With an MBA from the Stanford Graduate School of Business and as an Academic All-American from the University of Alabama, his insights have been featured in media outlets like Axios. William is also a speaker for leading Christian organizations such as Amazon Christians in Business. William loves helping faith driven entrepreneurs find success and significance in faith, family, and business. He has 3 wonderful kids, Liam (8), Eloise (6) and Henry (4) and is married to Deb.
Q&A with William
What’s something that meaningfully improved execution with very little cost?
“Bringing things in-house, the value of having people fully focused on one thing is massively underrated. No matter how good agencies are and contract workers are, they're just never going to eat, sleep, and drink the product in the same way people on your team will. Especially in the early stages.”
What’s one risk that was worth taking?
“Whatever God tells you to do when confirmed by prayer, scripture, and wise counsel. It doesn't guarantee success, but it guarantees that you're following God's will, and He is always honored in that.”
What’s a mistake that you learned from over the past six months?
“Not trusting my intuition with decisions, I can still underestimate sometimes how much I just internally know about the business because I spend all day, every day, thinking about it and living inside of it.”
“I also constantly underestimate the still small voice of the Holy Spirit.”
Finish the sentence: “I didn’t expect ___ to matter this much.”
"The look in my kids' eyes"
Cubit Happenings
In August, Cubit hit the road and hosted dinners in Denver and Austin with local investor and founder friends. In Denver, Philip and Gui co-hosted guests alongside Jason Chapman of Konvoy, and in Austin, guests enjoyed local gem, Jeffrey’s. Much of the conversation centered around the importance yet constant struggle to find true rest and honor the Sabbath in today’s day and age–sparked by this WSJ article.
Gui spent the day in Austin with ICON for a behind-the-scenes look at their housing and infrastructure 3D-printing facilities, as well as spent time with the team and other likeminded co-investors.
Philip spent a week in Austin at the new Arena Hall Modern, a Cubit portfolio company and private membership community in Austin for founders, investors, operators, artists, and their families. From attending community events and meeting new founders, Philip was entrenched in the deep fellowship that Arena Hall has to offer as well as got to visit a few other portfolio companies, including Proto-Town in Lockhart, TX.
Thomas was recently interviewed on the Faith Driven Investor podcast while attending Main Street Summit in Columbia, MO, where he discussed Cubit’s mission and place in the market. Coming out later this year!
Thomas attended the Better AI Summit in San Francisco at the end of September where he met with other VC firms and founders aiming to influence the deployment of AI towards human flourishing.
Gui in Austin touring ICON’s facilities.
Where We’re Headed
The team is gearing up to attend the Resolute Grid ribbon cutting and showcase in Austin on Monday, Oct. 26, where attendees will get to walk the floor through the parts that make a transformer. Also in October, Cubit will proudly sponsor Venture Dallas, the city’s largest venture capital and technology event, and will then attend the Q4 AIN Summit mid-November. The team will head to Austin and Palo Alto for portfolio company board meetings, as well as host at the Cubit office here in Dallas, ahead of the holiday season.
What We’re Learning
Thomas is reading… Stanley Hauerwas's commentary on Matthew's Gospel–cleverly entitled Matthew. He’s also reading King of Diamonds: The Search for the Elusive Texas Jewel Thief by Rena Pederson.
Philip is reading Live No Lies by John Mark Comer, a provocative and practical look into the lies that we let into our bodies, which ultimately sabotage our peace. As Comer puts it, “The problem isn't so much that we tell lies but that we live them.” He is also reading The River of Doubt: Theodore Roosevelt's Darkest Journey, a biographical true story of Theodore Roosevelt’s harrowing exploration of one of the most dangerous rivers on earth.
Gui is reading The Abolition of Man by C.S. Lewis and describes it as a “very helpful read as I think through how to parent my kids, how to avoid falling into the traps that have led our society to its current state of moral relativism, and what's at stake.” Gui also recently enjoyed this very well-synthesized writeup on how misaligned incentives have gotten the VC ecosystem into its current state, with megafunds driving inflated valuations.
What We’re Asking
Questions, themes, and problems that the Cubit team is contemplating.
Thomas continues to watch his kids grow up and finds himself marveling at their capacity for friendship. They're old enough now (11 & 9) where there are some stakes to the relationship. They can get hurt; they can reconcile. But the amazing thing: No matter what happens (so far), kids keep going back. They keep re-risking for new and recovered relationships. I wonder when we lose unembarrassed willingness.
Philip is pondering… How to maintain focus in a market that can be so easily distracted, particularly in the age of AI. How do we as investors encourage founders to have discipline around AI-related business materials and discourage overreliance on it? How can we empower founders to be diligent on putting in the time, effort, and energy themselves?
Gui is asking… What schooling choices will best prepare my kids for a future in which AI is everywhere? How do we best cultivate the talent and passions God has given them?
Job Board
Our portfolio is always looking to add strong talent to their teams. Check out the below for several current openings, and be sure to take a look at our job board to stay up-to-date on all open roles across the portfolio. Reach out to learn more or join our Talent Network HERE.
Matter Intelligence is hiring for a Chief of Staff.
Vulcan is hiring for several engineering roles here.
Lux Aeterna is hiring for a VP of Engineering.
Minno is hiring a Marketing Manager.
Stellios Technologies is hiring for a Chief of Staff, Government Sales Lead, and more.
Thanks for following along. We can’t wait to see what Q4 has in store.
Onward,
The Cubit Capital Team