Defense technology investments are increasing • TechCrunch

Investments in defense technology have increased amid rising global tensions.

By Andresen Horowitz At the recent American Dynamism Summit, Hadrian’s founder and CEO Chris Power painted a picture of the nation’s concerns about risk. “I’m here to tell you about an existential threat to the future of the Republic and how Hadrian is trying to solve it,” he said.

His words – a mixture of logic and Marcus Aurelius – were not out of place at the event, which brought together investors, founders, policy makers and other Washington officials to discuss issues in the country. In line with America’s Dynamism Group’s investment portfolio, a large number of the talks were related to defense and national security, including bets on defense tech startups like Hadrian, Andril and Shield AI.

A few years ago, many investors thought that cutting a check to a defense-first startup was simply a no-brainer. The tide has clearly turned: a16z is one of many organizations that have become increasingly interested in defense and national security. PitchBook’s data supports this warming to defensive technology. Between January and October of last year, VC-backed firms pumped $7 billion into aerospace and defense companies, a huge growth that contrasts with the relative slowness in other sectors. Some of the deals in recent months include Andreal’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 growth in interest in defense technology, but driving it all is a new and realistic vision that has spread among some technologists and venture capitalists. He sees international opposition that threatens stability Pax Americana; He sees the United States rotting from the inside out, bloated and exhausted. As a result, Silicon Valley thinking has returned to its defensive roots, acknowledging the role that venture-funded startups play in maintaining America’s military dominance and technological supremacy around the world.

“If you believe in democracy, democracy requires a sword,” 16z general partner David Ulevich said in a recent interview with TechCrunch. And Silicon Valley will be where it happened.