Vishal Persaud’s Post

Defense technology and its coterie of investors were once a cottage industry within the enterprise software-driven venture capital world. But in recent years, that's rapidly changing. Investors and startups are no longer wary of the uncertainties of building technology with governments as the main target customers. Concerns about bureaucratic red tape, longer investment return timelines, and moral opposition to the overlap between tech and war have somewhat dissipated. What has emerged is a techno-optimist patriotism among startup founders and investors alike, fueled by growing tensions and military technological gaps between the US and geopolitical archrivals Russia and China. The ongoing wars in Ukraine and Gaza have also spotlighted warfare and technologies from startups like Palantir and Anduril being used on the battlefield. Secretive billionaires like Thomas Tull and established firms, including Andreessen Horowitz and Lux Capital, have core strategies behind funneling billions of dollars into the defense tech industry. From 2021 to 2023, defense tech startups got about $109 billion from investors, nearly double the amount companies in the space received from 2016 to 2020, according to PitchBook data.

Defense technology and its coterie of investors were once a cottage industry within the enterprise software-driven venture capital world. But in recent years, that's rapidly changing. Investors and startups are no longer wary of the uncertainties of building technology with governments as the main target customers. Concerns about bureaucratic red tape, longer investment return timelines, and moral opposition to the overlap between tech and war have somewhat dissipated. What has emerged is a techno-optimist patriotism among startup founders and investors alike, fueled by growing tensions and military technological gaps between the US and geopolitical archrivals Russia and China. The ongoing wars in Ukraine and Gaza have also spotlighted warfare and technologies from startups like Palantir and Anduril being used on the battlefield. Secretive billionaires like Thomas Tull and established firms, including Andreessen Horowitz and Lux Capital, have core strategies behind funneling billions of dollars into the defense tech industry. From 2021 to 2023, defense tech startups got about $109 billion from investors, nearly double the amount companies in the space received from 2016 to 2020, according to PitchBook data.

DefenseTech as an ingredient in National Security 💥 💫 DefenseTech continues its rise and gains attentions all over the world 🌎 💫 The big picture : as the field attracts top talent it leads to new technologies, methods, applications and products. 💫 Why it matters: the turmoil around the world makes governments spend more money 💰 on defense to improve national security, resilience and robustness - the defense market grows fast alongside commercial applications. 💫 Between the lines: investors, #VCs support the trend and shift their attention and resources to #DeepTech, #DefenseTech and #dualuse technologies. 💫 Dive deeper: TechCrunch, Anna Heim, https://lnkd.in/ddjjmb28 #startup #innovation

Nice to see funders of actual innovation recognized for their efforts, but more important to remember no VC can thrive without remarkable founders leading the way. For this, Silent Ventures is humbled to be part of Business Insider's top defense tech investors list 🇺🇸 #entrepreneurship #innovation #startups #technology #venturecapital

It's in two days! Bankers & Bombs: How Venture Capital and Private Equity are Feeding the Military Industrial Complex 🗓SEPTEMBER 27, 2023 ⏱11:00 AM - 12:00 PM EDT 💻Zoom Registration https://lnkd.in/dXfUQmTK This event is co-sponsored by Security in Context and the Middle East Policy Forum at The George Washington University. Ties between the financial sector and the weapons industry are not new. The very first venture capital firm in the US was founded to profit from new technologies developed for use in WWII, and the role of military spending in turning Silicon Valley into a tech hub is well documented. But the rapid proliferation in the number of VC and private equity firms investing in weapons and intelligence technologies is a more recent phenomenon. Firms like Veritas Capital, Civitas Group, and Paladin Capital specialize in steering more private capital into weapons development and pushing tech start-ups to develop military applications for their products. And it isn’t just startups. Many large funds have divisions that combine the marquee names and government contacts of high-ranking military and national security retirees alongside asset managers who use their Rolodexes of wealthy clients to raise capital for new defense-tech investments.

I’m excited to share my new role with Alumni Ventures as a Venture Scout on their U.S Strategic Tech Fund.   I will be tapping into my personal current networks, and building out new relationships, specifically targeting critical country-level competencies within energy ⚡, productivity 📈, health💛, security🔐, or anything that could appear on a Congressional Budget.   Why the U.S Strategic Tech Fund 📣 Impact:💥Beyond defense, national interest extends to food, critical infrastructure and resources, supply chains, energy, data and information, the environment, healthcare, and the economy.   Government Tailwinds: 🇺🇸 In 2022, the “CHIPS and Science” act, provided ~$52B in subsidies for U.S. semiconductor production to support U.S. scientific research to better compete with China.   Widening Market:🗺The global energy security market was valued at $15B in 2021 and is projected to reach $42B by 2031, with a CAGR of 10.5%.   It’s a privilege to work alongside Pete Mathias and Drew W. on tech and startups that truly excite me. Shout out and thanks to the all in all network for their keynote events.   If you or someone you know fits this thesis, I would love to chat! #AlumniVentures #VentureCapital #Robotics #AdvancedManufacturing #Startups

Very much enjoyed my first #nytechweek event hosted by @industrybloc at HOF Capital's stunning offices: https://lnkd.in/gx3T9Nny Some impressions: + Deep tech VCs are in the business of building generational companies, and actively looking for founders with transformational ideas and solutions - i.e. the hard stuff. + There are roles for different-sized VCs in the ecosystem. They bring different perspectives and attributes.  Smaller VCs may be the better partners for testing the tech – but larger VCs may be the better partners for delivering exits. + Founders need to be able to demonstrate a clear pathway and a sophisticated thought process for their companies’ capital journey. + Bringing in expertise early, whether that is through employees or external advisers (or a combination of both), will help founders' engagements with investment partners down the track. + When choosing an investor, founders should consider the degree of staying power / permanence of that investor. Would they continue investing – and if not, could that (wrongly) signal risk in the business? Would that investor’s support be ongoing if there are personnel movements? + Deep tech VCs are excited about the impact of AI, and the entirely new infrastructure opportunities that could be created as a result. + Deep tech VCs are also buoyant about the opportunities that remain for “traditional” software and hardware propositions – including robotic solutions for healthcare, bio-tech, manufacturing, logistics / supply chain. Energy tech and climate tech (including nuclear fusion technology) are also “hot”. + The US Government is becoming more deliberate about its efforts to engage with the early-stage ecosystem, because they are starting to see real benefits of doing so. Would the New Zealand Government follow suit? #DentonsVentureTechnology

In a time where the overall macroeconomic situation seems to be trashing startup valuations, lowering rounds and slowing VC investments… there is one sector that has experienced somewhat of a boom — the #defence #innovation #sector. #Starting up a #defence #company.

Agree with my friend Nicole Priel and other Israeli venture investors - Israeli startups are well-positioned to compete, (and win in), the global tech scene, despite the challenging reality we’re facing right now.    Good companies are getting funded.   M&As are happening, with cyber leading the way. Yes, the bar is higher and funding is harder for founders. But the level of innovation is there and the Israeli scrappy and innovative culture of entrepreneurship is not changing one bit. If anything, it’s now being applied to protecting Israel’s democracy.    I believe in Israeli founders building companies from the ground up. No government will change that.  #startupnation #venturecapital #newyorkcity