The ongoing shift from big, expensive military assets like battleships and fighter jets to smaller, more agile and less costly ones positions Anduril and other venture-backed companies to win more government and commercial contracts and draw more capital from investors. The escalation of geopolitical conflicts in recent years, such as Russia’s war on Ukraine, has raised the profile of defense technology for many venture capital investors. Enticed by the returns they’re hearing of from leading defense-oriented companies such as Anduril Industries and post-IPO performance of companies like Palantir, some VCs are expanding their defense bets, while others that previously had no exposure are making their first investments.
“Never before has the door been open as wide as it is for outsiders and non-traditional voices to have an opportunity in making a difference, finding purpose and getting involved with defense and national security customers,” says Van Espahbodi, a founding partner at Generational Partners. Anduril’s lucrative contracts with the US Special Operations Command (SOCOM) and other government agencies have made it the darling of the industry. It raised a $2.5 billion Series G round in June that put its post-valuation at $30.5 billion. The Californian company uses virtual and augmented reality, computer vision and automation to enhance surveillance and threat detection in confronting national security challenges.
It secured its first Department of Defense contract in 2017 shortly after its founding. Defense tech comprises a broad spectrum of use cases, far beyond traditional weapons systems (known as kinetics within the defense ecosystem). The category includes everything from satellites and hypersonic missiles to cybersecurity solutions, advanced materials, or renewable energy generation and storage, or, for instance, autonomous navigation and communication platforms designed for GPS-denied environments. David Bogoslaw - 1 day ago VC firms worldwide had invested $11.9 billion in 161 defense tech companies as of July 28, matching the full-year record of $11.8 billion invested in 252 companies in 2022, data from CB Insights notes.
No comments:
Post a Comment