Defense Tech Investments Are on the Rise TechCrunch

At Andreessen Horowitz At the recent American Dynamism Summit, Hadrian Founder and CEO Chris Power painted a picture of the country in peril. “I’m here to tell you about an existential risk to the future of the Republic and how Hadrian is trying to resolve it,” he began.

His words – a mix of rationalism and Marcus Aurelius – were not out of place at the event, which brought together a mix of investors, founders, policymakers and other Washington officials to discuss issues facing the country is facing. A notable number of discussions were related to defense and national security, in line with US team Dynamism’s investment portfolio, which includes bets on defense tech startups like Hadrian, Anduril and Shield AI.

Just a few years ago, many investors thought writing a check for a defense-focused startup was a proposition that just didn’t make sense. The tides have clearly changed: a16z is one of many companies with a greater focus on defense and national security. Data from PitchBook supports this warming in defense technology. From January to October last year, venture capital-backed companies pumped $7 billion into aerospace and defense companies, a massive growth that contrasts sharply with the relative slowness of other sectors. Some deals in recent months include Anduril’s $1.4 billion Series E; Shield AI’s $225 million Series E; and Vannevar Labs’ $75 million Series B.

There are many reasons for this increased interest in defense technologies, but all are driven by a realistic new view that is spreading among some technologists and venture capitalists. She sees global antagonisms threatening the stability of American Pax; he sees the United States rotting from within with bloat and lethargy. As a result, the Silicon Valley mentality has returned to its defense roots, embracing the role venture-backed startups can play in maintaining America’s military dominance and technological supremacy in the world. .

“If you believe in democracy, democracy requires a sword,” a16z general partner David Ulevitch said in a recent interview with TechCrunch. And Silicon Valley will be where it is forged.