Global Competition and Innovation: Where Strategic Investment Meets National Security
09 April 2025 - A Weekly Publication by New North Ventures
NEW NORTH VENTURES PRESENTS: INVESTING IN THE GLOBAL COMPETITION AND INNOVATION ERA
May 13, 2025 11:00 AM EST — VIRTUAL WEBINAR
As geopolitical tensions intensify and technological competition accelerates, strategic investors must navigate complex risks and identify mission-critical opportunities. New North Ventures invites you to join our executive briefing on investing in the Global Competition and Innovation Era, featuring expert analysis from the Executive Director of the Council on Global Competition and Innovation alongside our team's presentation on Dual-Use Venture strategy. This webinar delivers actionable intelligence on strengthening both national security and investment portfolios through principled capital allocation in frontier technologies.
Strengthening America's Technological Advantage Through Strategic Investment
The Council on Global Competition and Innovation's inaugural report confirms what we at New North Ventures have long recognized: market-led national security investments are not optional—they are imperative for maintaining America's technological superiority.
The data presents a stark reality. Between 2003-2007, the United States led in 60 of 64 critical technologies. Today, we maintain leadership in merely seven, while China has expanded from three to dominating 57. This strategic inversion demands immediate, principled action.
As adversaries advance rapidly across technological domains, the intersection of private capital and national security objectives becomes the frontline of a new kind of competition. This presents both a mission-critical responsibility and a strategic opportunity for forward-thinking investors.
The markets are substantial and growing—cybersecurity could reach $2 trillion, while demand for critical minerals essential to our technological infrastructure is projected to quadruple by 2040. These are not merely commercial opportunities but critical components of our national resilience.
For investment managers seeking both mission impact and returns, incorporating a national security lens reveals hidden value in strategically important sectors while strengthening America's technological leadership. This approach transcends traditional investment criteria—it is about securing our nation's future while generating commercial value.
The consequences of inaction extend beyond security vulnerabilities to include technological dependence, diminished economic competitiveness, and a reduced capacity to shape global standards that align with democratic values.
At New North Ventures, we invest in dual-use technologies that address these frontier challenges. We believe that investors who recognize this strategic imperative will not only achieve significant returns but contribute to a more secure future where American innovation leads global technological advancement.
Reality Defender Secures Strategic Investments
Reality Defender, a leader in detecting AI-generated content, has strengthened its position in the deepfake defense space with strategic investments from BNY Mellon, Samsung Ventures, and IBM Ventures as part of its extended Series A funding round.
Reality Defender's multi-model platform helps enterprises, government agencies, and media organizations identify synthetic media across audio, video, images, and text, addressing growing threats from increasingly sophisticated AI-generated content.
"The urgency of protecting digital interactions from synthetic manipulation has never been greater," said Ben Colman, CEO of Reality Defender, highlighting the critical mission that has attracted these major institutional investors. This investment highlights the growing recognition of synthetic media detection as essential infrastructure for maintaining trust in digital communications, further validating NNV's early thesis on the importance of AI safety and trust technologies.
Tech Giant Entanglement in Geopolitics Risks European Markets
In their April 3, 2025 Foreign Affairs article, "The Brewing Transatlantic Tech War," Johns Hopkins University professor Henry Farrell and Georgetown University professor Abraham Newman warn that major U.S. technology companies like Alphabet, Meta, and OpenAI risk losing access to European markets by aligning too closely with the Trump administration. The authors argue that "By getting close to U.S. President Donald Trump, they risk losing access to one of their biggest markets: Europe," as tensions between the U.S. and EU increase over regulatory approaches and data privacy concerns.
The article highlights a particularly concerning vulnerability in the transatlantic data transfer mechanisms that support billions in tech revenue. "For those companies, the stakes couldn't be higher. Google alone makes over $100 billion in sales in Europe," note Farrell and Newman. They predict that European courts and privacy regulators may soon invalidate the current data transfer arrangements due to U.S. government actions, which would "likely destroy Meta's business model while making it difficult for companies such as Google and Microsoft to offer safe cloud services in Europe."
For the dual-use technology ecosystem, this developing geopolitical tension presents both challenges and opportunities. Companies developing security and privacy solutions for enterprise customers may find increased demand for their services as organizations navigate complex compliance requirements. However, they must also carefully position their solutions to work within potential new data localization requirements and shifting regulatory environments. As European markets potentially move toward developing their own platforms and cloud infrastructure, strategic partnerships that bridge the transatlantic divide may become increasingly valuable for maintaining market access.
More links to explore:
Founded: 2023
Key People: CEO Baiju Bhatt
Elevator Pitch: The company builds a constellation of small satellites that collect sunlight, convert it to electricity, and wirelessly transmit power to ground stations, enabling consumers to get reliable energy distribution with reduced environmental impact.
Funding: The company raised $60 million of Series A venture funding in a deal led by Index Ventures and Interlagos Capital on April 2, 2025. Andreessen Horowitz and other investors also participated in the round.
In our most recent episode of the Securing Our Future Podcast, general partner Jeremy Hitchcock sits down with Paul Thompson, a 20-year Army Special Forces veteran now helping bridge critical technology gaps at Morgan 6 LLC. Together, they dive into how commercial and national security sectors collaborate to drive innovation.
