Strategic Consensus Emerges
11 June 2025 - A Weekly Publication by New North Ventures
Notes from Austin
Last week in Austin, something crystallized across dozens of conversations. The national security community isn't just talking about the future of warfare—they're actively reshaping it. Seasoned operators who have served on the front lines - and many who continue to even outside of government - are actively engaged in policy, technology and investment initiatives that are directly influencing the security of our nation and that of our allies.
The most striking revelation? Numerous senior leaders independently identified undersea warfare as the critical domain. When you hear the same strategic priority from different voices across government and industry, that's not a coincidence. That's consensus forming in real time based on experience, knowledge and perspective.
Three themes dominated many of these conversations. Integration supersedes innovation. Integrated programs consistently move faster than standalone new solutions as they are more practical and actually deployable. The translation problem persists. Private capital reduces government risk but does not eliminate communication barriers—founders still struggle to explain their value effectively and efficiently. Finally, future battlegrounds are crystallizing. Space, cyber, and undersea are no longer emerging domains; they are key battlegrounds where advantage gets decided.
On another key front, one speaker captured the industrial reality perfectly, "It's not about the F-35; it's about the F-150." Strategic advantage will increasingly flow from industrial capacity and resilient supply chains, not just advanced platforms.
Signals and Sensors Showcase | 11 June, 2-3PM ET
Join us today for a one-hour showcase of three dual-use startups building AI decision advantage systems. HavocAI, Clara Copilot, and Code19 Racing will present alongside AI investor and New North Ventures Partner Rob May.
These companies represent exactly what we've been discussing—startups working at the intersection of commercial applications and national security needs. They're building the decision architectures that will define America's competitive edge in sensing and AI.
If you're tracking emerging defense innovation or thinking about dual-use scalability, this is worth your time. The most interesting technologies often emerge when startups solve problems governments didn't even know they had.
Senate's $150B Defense Package Signal Check
The Senate's defense reconciliation package sends clear signals about where the smart money—literally—is flowing. While the House emphasized traditional platforms, Senate leadership is betting hard on AI Decision Advantage and Critical Technology themes that align perfectly with our investment thesis.
The numbers tell the story. $16B earmarked for "innovative low-cost and next-gen weapons" featuring drones, counter-drone tech, and AI. Add $300M for small drone development and another $250M for cheap counter-air systems. This isn't wishful thinking—it's procurement reality.
The $23B allocated to rebuild supply chains and expand advanced manufacturing capacity hits our Critical Technology sweet spot, addressing the strategic vulnerabilities we've been tracking. Meanwhile, massive classified program funding ($5.13B for space superiority alone) signals government recognition that tomorrow's conflicts will be won by algorithms and autonomous systems as well as traditional firepower.
For our portfolio companies in these verticals, this represents validated market demand at scale.
More links to explore:
HavocAI continues proving that software-first thinking beats hardware-only approaches. CEO Paul Lwin's team has deployed 32 autonomous vessels globally in just 18 months, with the same brain running everything from 14-foot patrol boats to the planned 100-footer hitting water by year's end.
The real breakthrough isn't vessel size—it's collaborative autonomy. HavocAI's dashboard demonstration, where eight boats self-organized to search ocean sectors, shows how software scalability creates force multiplication. With Congress allocating $3.6B for USV programs, the market validation is clear. What we're seeing is the emergence of standardized autonomy platforms that can adapt across multiple hull configurations—a fundamental shift from bespoke systems to scalable maritime intelligence.
Founded: 2024
Key People: CEO Vlad Matsiiako
Elevator Pitch: Developer of a secrets management platform designed to help companies securely store and manage sensitive credentials like API keys and passwords. The company's platform provides secure infrastructure for managing digital credentials and sensitive data, enabling organizations to maintain cybersecurity across their systems and applications.
Funding: The company raised a $16 million Series A led by Elad Gil, with Y Combinator, Gradient, and Dynamic Fund also participating.
In this episode of the 'Securing Our Future' podcast, hosted by New North Ventures, Jeremy interviews Veronica Daigle about her journey from Wall Street to the federal government, including her roles at the Office of Management and Budget (OMB) and the Pentagon. Veronica now leads the Defense Ventures group at Red Cell Partners, a venture firm focused on building and incubating companies with dual-use applications.
