Arlington Capital Partners’ Post

Read this today: Buy Commercial or Lose “The U.S. risks its national security by not harnessing commercial tech for defense” While there are 6 “unicorn” ($B+ valuation) defense tech startups, even combined, they are still a fraction of just one Prime’s market cap The barriers to entry are high and the attrition rate is staggering Orgs like AFWERX and DIU have been good pathfinders, now their companies must transition to program offices with real purchasing power “Remember, the more time the bureaucracy takes to “burn down risk”, they simply transfer that risk to operators who are working with 30-year old legacy systems in an increasingly hostile global environment.” It’s time to build. It’s time to buy. This is how we win! Great article (as usual) by Pete Modigliani! Link below 👇🏻 #defense #technology #innovation

Early-stage founders and small business owners who are;  ✅ 1. Looking for a government customer who wants to buy your technology  ✅ 2. Looking for a government customer who has the money to throw down  ✅ 3. Looking for the right contract vehicle  The MAC can help – jump into our 50min session this Friday, Oct 27th 11:30am MST/ 2:30pm EST. Register here: https://lnkd.in/gx39Apw4 The “Business of Innovation in Defense” series is hosted by Southwest MAC, in partnership with NSIN - National Security Innovation Network & Defense Innovation Unit (DIU). The series will cover specialized innovation contracting and how to navigate the complex DOD marketplace with your cutting edge technology.  The Southwest Mission Acceleration Center (MAC) is the center of gravity for defense innovation in the Southwest (Arizona, Nevada, Utah, New Mexico). As a part of the National network of MACs, our goal is to remove barriers to engagement and accelerate defense innovation for startups, academic institutions, and mission partners across the Department of Defense. Launching with programming from the Defense Innovation Unit (DIU) and support from the Arizona Defense & Industry Coalition (AZDIC), the MAC allows for both formal collaboration and serendipitous innovation.  #mac #swmac #NSIN #NSINonramp #DIU #defensetech #DoD #venture

Wiz deal to acquire Lacework collapses! The companies recently signed a Letter of Intent with the aim of completing a deal for around $150-200 million. However, negotiations fell through in the due diligence process. Lacework was valued at $8.3 billion in 2021. News elsewhere this week: Island raised a $175M Series D round at a whopping $3 billion valuation. They've now raised a total of $487 million Corelight secure $150M Series E round. The round was led by Accel, a notable first investor, along with significant contributions from Cisco Investments and the CrowdStrike Falcon Fund. Permira acquiring control of BioCatch at $1.3 billion valuation. Biocatch finished 2023 with 49% ARR growth, whilst also surpassing the $100 million ARR milestone and attaining EBITDA profitability. NVIDIA completes yet another AI acquisition, with Deci AI in a $300M deal. Cyber unicorn Armis acquiring Silk Security for $150 million - Silk raised $12.5 million in Seed funding last August. BeyondTrust acquiring Entitle for 100-150M being reported. #cybersecurity #AI #news

Fenwick's Defense Innovation & Govtech group is thrilled to partner with the @Silicon Valley Defense Group (SVDG). Our team represents over 25% of the 100 leading national security-focused startups listed in this year's NATSEC100 report! The NATSEC100 spotlights the best venture-funded startups making waves in national security and dual-use tech. SVDG's initiative gives us a clear, data-driven view of the ever-evolving techno-security landscape, sparking important discussions about the Defense Industrial Base (DIB) and the National Security Innovation Base (NSIB). Let's celebrate the achievements of these groundbreaking companies and keep the conversation going about the future of our national security and defense tech ecosystem. #NationalSecurity #VentureCapital #DefenseTech 

Please join us this August 21, 2024 at 2:30pm at Fed Supernova (www.fedsupernova.com) where Kevin Kane will be speaking on a panel discussing the latest on the world's transition to post-quantum encryption. Location: Austin, Texas, Capital Factory, ACL (16th Floor). Title: Quantum Leap: The Frontier of Post-Quantum Cryptography Description: With more nations investing in quantum computing research and initiatives, it is imperative for the DoD to proactively prevent cryptanalytic attacks against the United States. Explore the current landscape of post-quantum cryptography (PQC) in this session, including the status of NIST standards, breakthroughs in PQC implementations, and the often-overlooked challenges in deploying realistic PQC solutions. Gain insights into the evolving strategies for safeguarding data in the quantum era, illuminating the path towards a resilient cryptographic future. About: Fed Supernova is the world's premier conference on defense technologies, where small but growing innovators intersect with big government. Thanks to the team at AMERICAN BINARY: Kevin Kane Andrew McElroy, Derek Hetzler, Josh Kiluk, Adam Firestone, Hilary MacMillan, Patrick Reilly, Rex M. Lee, and many more. Special Thanks to Capital Factory, Bryan Chambers, Greg Talamantezm Brian Cook, Mary Gwinn, and a number of other important people to our story at American Binary.

The new 3M CEO’s focus on revamping R&D is a powerful reminder of the critical role innovation plays in maintaining a competitive edge. At Loopli we share this commitment to pushing the boundaries of technology and driving continuous improvement. Just as 3M aims to revitalize their R&D efforts, Loopli is dedicated to advancing our Information Security solutions to meet the evolving needs of businesses. Our innovative approach ensures that our clients are protected against emerging threats while enabling them to harness new opportunities for growth. Investing in R&D is not just about staying current; it’s about leading the way. Loopli’s dedication to cutting-edge research and development empowers businesses to navigate the complexities of the digital age with confidence and resilience. Join us in embracing the future of innovation and discover how Loopli can help your business stay ahead in a rapidly changing world. #Innovation #R&D #BusinessGrowth #InformationSecurity #Loopli https://lnkd.in/e4cN9xBa

I am a proud member of our strong crisis management practice. I reinforce the reminder that we are well-placed to avoid crises for clients on the sometimes shaky path of founding a business, by way of sensible early engagement for founders, as well as helping clients through any obstacles in the road to success, and mitigating any risks should issues arise. #crisismanagement #reputationmanagement Withersworldwide

The New Defense Tech Thesis: I break it, you [DoD] buy it. If we truly are enabling the #nextgeneration of doers and #innovators, risk is the core strategy. Therein lies the rub. How do we enable United States Department of Defense to take smart risks with innovative technologies? It's a #fundamental #culture change, that happens from the TOP down and trickles down to the #acquisition arm: The most important people are the Contracting Officers (CORs) and Program Mangers of the actual Contract Vehicle. Hot Tip for #startups: Find a U.S. Small Business Administration representative and a SBIR COR listed on a different project that is similar to your solution. Have THEM lead you to the right customer in DoD.

Given the increasing geopolitical tensions and recent conflicts, there is a heightened focus on national security. Consequently, we are witnessing a surge in defense technology. According to PitchBook: · US defense-tech startups have collected nearly $100 billion in VC funding from 2021 to now – 40% higher than what was invested in the seven prior years combined · US defense-tech market is expected to expand at a compound annual growth rate of ~16%