He cites recent direction by Defense Secretary Chuck Hagel to bring defense costs under better control partly by tapping into private enterprise efforts to “develop technology faster, better and cheaper.” Kinsella says, “The government doesn’t know how to get its head around this thing.”

Company CEO Gregory Sancoff has a great grasp of what is needed, Kinsella says. The investor calls the executive a “textbook terrific” case of the right kind of investment: someone who is knowledgeable, proven and willing to risk his own money on a good technology concept.

Still, better technology is not enough. “It has to be an opportunity one has to find interest in,” Kinsella says. That appears to be the case with Ghost, which could replace Navy Seal boats that have a history of causing back injuries to members of those elite forces.

Ghost’s novel design, which lifts the boat hull out of the water atop special torpedo pontoons, would save Seals and other riders from those kidney-bounding rides, he says.

The ship could even give the Littoral Combat Ship (LCS) a run for some coastal missions.

But, he acknowledges, this is charting a new course for Avalon. “This is not in [the] wheelhouse of technology that Avalon is known for,” he says. “We’ve never made a defense-sector bet before.”

But Kinsella notes that some of the Navy’s most influential officials have shown interest. “We’re making the right inroads and contacts with the Navy brass,” he says.

When dealing in defense, nothing is guaranteed. “Our biggest worry? Anytime you’re dealing with the government — for unknown, political, irrational reasons — they will change their minds,” Kinsella says.

Still, he is expecting “breakout contracts” relatively soon. Then, he says, there will be greater interest from bigger defense companies. “Defense contractors will be sniffing around. We could end up with some partnership. But we don’t want to be emasculated by some bear hug.