The Journalists Who Are Shining a Spotlight on National Security, Venture Capital, and Dual-Use Defense Technology, Fundings: Xcimer, Diligent Robots, Sorbiforce
The Journalists Who Are Shining a Spotlight on National Security, Venture Capital, and Dual-Use Defense Technology, Fundings: Xcimer, Diligent Robots, Sorbiforce
5 June 2024 - A Weekly Publication by New North Ventures
In the United States, dual-use technology has a long-standing history. The United States government, in particular, made substantial investments in cybersecurity, energy research, the internet, and space, contributing to the development of the modern technology landscape. As war and unrest have escalated in the Middle East, Asia, and Europe, demand for dual-use technology has increased exponentially, dramatically expanding this emerging technology sector. In this edition of Securing Our Future, New North Ventures is proud to showcase four notable authors and journalists, pioneers in reporting on defense technology, national security, and dual-use investments and technology.
David Jeans is a senior writer at Forbes, covering AI, defense, and national security. He has previously published articles with the New York Times, the Associated Press, and independently. He typically covers news on AI startups, the overall funding landscape, and the Pentagon’s involvement in commercialized technology. Check out David’s most recent article on the AI startup Helsing below:
AI Startup Helsing Raising Funds At $4 Billion Valuation, A Major Bet On Defense Tech
Helsing Defense, a defense technology startup, has secured $400 million in funding from General Catalyst to advance its innovative warfare technology. This comes at a pivotal time, as ongoing conflicts in the Middle East and Ukraine, along with increasing tensions between the U.S. and China, are pushing venture investors to seek returns in companies that enhance the national security interests of Western nations.
Marc Vartabedian is a reporter at WSJ Pro Venture Capital, discussing the venture capital industry and its financing that gives rise to technology startups. He has interviewed venture investors in defense technology, discussed cybersecurity and AI, and explored the evolution of the tech-funding market. Check out Marc’s article on succeeding in defense tech below:
Venture Investor on What It Takes to Succeed in Defense Tech
Venture investor James Cross discusses the keys to success in defense technology, emphasizing the importance of understanding the military’s needs, building relationships with defense contractors, and patiently navigating the complex regulatory landscape.
Heather Somerville is a reporter at the WSJ, focusing primarily on technology and national security. She has also reported on venture capital and technology startups for the WSJ in 2019. Before joining the WSJ, she wrote about venture capital and Silicon Valley startups for Reuters and the Mercury News. Check out Heather’s article on Silicon Valley and the race to develop hypersonic missile technology below:
Silicon Valley’s Next Mission: Help the U.S. Catch China and Russia in Hypersonic Weapons
Silicon Valley’s investors and startups play an impactful role in aiding the United States in catching up to China and Russia in hypersonic weapons technology. Private companies and the government collaborate to develop cutting-edge capabilities to counter potential threats.
Aria Alamalhodaei is a TechCrunch reporter specializing in the space and defense industries. She has interviewed venture capital founders, commented on the future of funding in the space and defense technology industries, and reported on collaborative deals between the Pentagon and defense startups. Check out Aria’s article on HawkEye 360’s, a New North Ventures portfolio company, funding below:
HawkEye 360’s New Funding Reflects Ongoing Investor Appetite for Defense-focused Tech
HawkEye 360’s funding round in July 2023 reflects continued investor interest in defense-focused technology, particularly in innovative solutions like HawkEye 360’s satellite monitoring service, which enables enhanced global situational awareness for customer and intelligence missions.
Efabless Corporation: Efabless Corporation and Weebit Nano Ltd have entered a partnership that empowers designers, startups, product companies, and academia to prototype unique designs in limited quantities at SkyWater Technology using Weebit’s ReRAM technology. Efabless provides the ideal environment for small-scale manufacturing, paving the way for these innovative projects to potentially become mass-produced products. When this happens, customers will sign a licensing agreement directly with Weebit.
HawkEye 360: HawkEye 360 has announced the grand opening of its new Headquarters in Herndon, Virginia! This impressive 13,297-square-foot facility on the same campus as its Advanced Technology Development Center will serve as the core hub for HawkEye 360's executive and corporate teams. It also features a state-of-the-art space for client presentations, enhancing its capacity to innovate and collaborate.
Additionally, HawkEye 360 is revolutionizing the surveillance and intelligence industry by using small satellites to detect and locate radio frequency (RF) emissions from space. This provides crucial insights into "dark ships" and GPS jammers.
HawkEye 360 integrates RF monitoring with synthetic aperture radar (SAR) for comprehensive situational awareness. Despite challenges like limited awareness among potential government customers, HawkEye 360 continues to showcase its groundbreaking capabilities in commercial RF sensing.
Data centers, the physical engines of the internet and the cloud, are being built more extensively and with greater capacity than ever before, driven by the surge in demand for cloud computing and artificial intelligence (AI). The global capacity of data centers is expected to double by 2027, partly fueled by the need for massive amounts of data and power for AI operations.
This growth is dominated by three major tech companies—Amazon, Google, and Microsoft—which control about 65% of global data center capacity. These companies are not just creating larger warehouses for data but are positioning themselves as essential providers of a wide range of computing services, making it easier and cheaper for other companies to rent services rather than building their own infrastructure.
The increasing dominance of these tech giants in the data center market has significant implications for AI startups and the broader tech ecosystem. While cloud computing has lowered barriers to entry for startups, allowing them access to advanced computing power and scalability, it also creates a dependency on the major cloud providers. This dependency can lead to "lock-in," where switching from one provider to another becomes prohibitively difficult.
This situation benefits the major tech companies, which can offer incentives and maintain control over the startups they support. Economists and legal scholars warn that this growing control could stifle innovation, as the tech giants can dictate the terms and conditions under which AI technologies develop. Regulatory bodies, like the Federal Trade Commission, are beginning to scrutinize these practices, aiming to prevent monopolistic behavior and ensure a competitive, innovative tech landscape.
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Founded: 2021
Key People: CEO Conner Galloway
Elevator Pitch: A scalable laser-driven fusion technology designed to transform the energy marketplace by providing carbon-free energy at scale.
Funding: The company raised $100 million of Series A venture funding in a deal led by Hedosophia on June 4, 2024.
Founded: 2017
Key People: CEO Andrea Thomaz Ph.D
Elevator Pitch: Artificial intelligence-based robot assistants designed to support people operating in dynamic and semi-structured environments.
Funding: The company raised $33.75 million of Series B and Series B2 venture funding in a deal led by Canaan Partners on June 3, 2024.
Founded: 2017
Key People: CEO Serhii Kaminski
Elevator Pitch: A sustainable battery company intended to offer non-metal batteries.
Funding: The company raised $339,711 in equity crowdfunding in the form of SAFE notes via Republic as of June 6, 2024.
Look for a new episode of Securing the Future Podcasts wherever you listen. In our most recent episode, general partner Jeremy Hitchcock sits down with Brian Streem, the maverick CEO of Vermeer, for an enlightened conversation about defense procurement, drones, and innovation.