Private Capital’s Expanding Role in National Security Innovation
05 November 2025 - A Weekly Publication by New North Ventures
Over the past two years, we have seen private capital increasingly stepping into national security with purpose and growing confidence. The center of innovation is no longer inside government labs. Most of the talent, velocity, and creativity now lives in startups and commercial ventures. Companies like Anduril and Palantir have shown that defense-focused innovation can scale, deliver meaningful capability, and produce real returns. Success attracts attention and reinforces itself.
The world is demanding faster, more adaptable solutions. Events in Ukraine and the Middle East make clear that future conflicts will be shaped by technologies developed outside traditional defense channels. LPs and family offices are taking notice. Much of the capital flowing into this space is still labeled impact or patriotic but that is changing as dual-use technology integrates with broader commercial markets. Smart investors see opportunity in this intersection of mission-driven innovation and venture-scale returns.
Policy developments are quietly aligning with market realities. The Pentagon is evolving its approach to procurement and innovation. Technology will always move faster than government but reforms designed to accelerate fielding and encourage outside investment signal that the system is becoming more receptive. That said, friction remains. Government timelines and incentives do not always match the speed of startups and it’s unlikely they will ever keep pace. Investors must acknowledge this without letting it obscure the opportunity.
For those tracking this space the signals to watch are clear. Bipartisan support for acquisition reform and measured policy changes will widen the opportunity set. The space is real, the technology is exciting, and the returns are there for those who seek to understand the terrain and act with discipline.
The Latest Buzzy Tech Investment: Ukrainian Drones
Ukraine’s drone startups are a lesson in innovation under pressure. Many began in garages or makeshift workshops - including those in regions under persistent attack - and have been tested in real conflict. Investors are taking notice because these teams deliver results where it counts. Western capital is helping them scale, professionalize governance, and expand internationally. The pattern reflects what we are seeing more broadly in defense tech. Battlefield-proven performance and operational credibility are what attract investment and create opportunities. Technology alone does not win deals. Execution, adaptability, and the ability to navigate regulatory and policy environments determine who succeeds. The war in Ukraine and the partnerships it has sparked show that practical impact matters.
More links to explore:
Draft memo reveals potentially sweeping Pentagon acquisition reforms
“The Entire Northern Hemisphere Can Be Controlled From the Space Above the Arctic”
HavocAI has announced a partnership with Hanwha Global Defense to accelerate production of autonomous surface vessels, including drone boats designed for rapid deployment and maritime operations. The collaboration combines Hanwha’s shipbuilding expertise with HavocAI’s agility and autonomy software, creating a unique bridge between established industrial capability and startup innovation.
The partnership comes on the heels of HavocAI’s recent $85 million funding round and executives are now familiarizing themselves with each other’s shipyards and operational processes in South Korea. The companies aim to scale quickly, with demonstrations already taking place in the Pacific and a goal to expand U.S. shipbuilding capacity while maintaining global operational reach.
Autonomous vessels like HavocAI’s Rampages and Kaikoa offer a cost-efficient, adaptable approach to maritime defense, addressing capacity gaps and delivering battlefield-ready technology faster than traditional programs. Investors and partners see a company that pairs technological maturity with a startup’s ability to move decisively, positioning HavocAI to set a new standard in naval innovation.
In this episode, New North Principal, Jess Nelson, guest hosts and is joined by Ben Faberlle, CEO of CrunchAtlas, a company pioneering AI-enabled cyber defense solutions. Ben discusses his transition from a military career to founding CrunchAtlas, the inspiration behind the company, and the challenges in building scalable cyber defense technology. He also shares insights into the current threat landscape, the journey to securing their first federal contracts, and the focus on critical infrastructure. Ben offers valuable advice for startup founders on securing contracts, strengthening cyber posture, and navigating the commercial sector. Tune in to learn more about the future of AI in cyber defense and the impressive journey of CrunchAtlas.
Thanks for reading Securing Our Future! Subscribe for free to receive new posts and support my work.