SBA & DoD Announce $2.8 Billion Investment in Critical Tech—Our Firm Joins First Cohort!
23 October 2024 - A Weekly Publication by New North Ventures
Exciting news! The U.S. Small Business Administration (SBA) and Department of Defense (DoD) just unveiled their first-ever Small Business Investment Company Critical Technology (SBICCT) Initiative, and we’re part of the inaugural cohort!
Through this groundbreaking program, $2.8 billion will be invested in over 1,000 innovative companies developing critical technologies that bolster US economic and national security.
With up to $175 million in SBA-backed funding available per fund, this is a powerful push toward driving innovation, creating jobs, and maintaining global tech leadership. To find out more about this exciting initiative, click here.
Reality Defender: We’re excited to announce their latest release introduces real-time video deepfake detection integrated with tools like Zoom to verify the authenticity of participants on video calls. With deepfakes becoming increasingly sophisticated, Reality Defender’s technology arrives at a critical moment. The platform’s private beta is now available, with public access soon to follow. Read more here.
Efabless: Efabless recently launched its chipIgnite ML platform, developed in partnership with SensiML, to enable the creation of custom silicon solutions for edge machine-learning (ML) applications. This new system-on-chip (SoC) platform provides a 10× improvement in power efficiency and performance compared to standard MCUs, making it ideal for battery-powered devices.
With chipIgnite ML, engineers can deploy advanced ML models tailored to specific use cases, such as keyword spotting, using SensiML’s tools. CTO Mohamed Kassem emphasized that this platform offers greater control over chip design, allowing developers to create optimized hardware accelerators for edge applications. Read more here.
How the Patriotic Investment Act Can Counter China’s Stimulus Package
China's recent economic stimulus sparked a rally in its stock market, but the U.S. Congress is taking strides to counter this by introducing the Patriotic Investment Act (PIA), which could have a significant impact on American investment in China.
The bill, led by Rep. John Moolenaar and Sen. Marco Rubio, aims to shift U.S. capital away from Chinese assets by removing favorable capital gains tax rates for such investments, instead applying ordinary income tax rates (37%). It would affect all future investments and would discourage further capital allocation to China.
With a weakened Chinese economy, the PIA comes at a sensitive time. The legislation may exacerbate China’s difficulties in attracting foreign capital, adding pressure to its financial system, especially as U.S.-China tensions continue.
Given bipartisan support and a looming tax overhaul in Congress, the bill has a strong chance of passing, potentially affecting up to $1 trillion of U.S. capital invested in China.
AI and the New World of Security Innovation
Artificial Intelligence (AI) is undergoing a major evolution driven by advances in data storage, processing power, and algorithms. IQT, a tech-focused investment group, is leveraging AI to enhance national security, processing massive data, boosting recognition technologies, and improving decision-making.
AI's capabilities, from natural language processing to behavior prediction, offer significant advantages but also pose threats, as adversaries can exploit it. IQT emphasizes the importance of understanding AI's "black box" to ensure its ethical and secure use. The future of AI promises a transformational impact.
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Look for a new episode of the Securing the Future Podcast wherever you listen. In our most recent episode, general partner Jeremy Hitchcock sits down with Hector Xu, founder and CEO of Rotor AI, to discuss the groundbreaking technology behind converting traditional helicopters into autonomous drones for both civilian and defense applications.
