Defense Tech .... The New Center of Gravity for Venture

INNOVATION

Defense tech, the new center of gravity for venture

Defense tech is no longer a niche, nor a temporary response to geopolitical crises. It is now a fully fledged ecosystem made up of capital, founders, major industrial partners, and operational demand, all converging in a space set to grow rapidly.

Fujitsu launches Japan's first defense tech open innovation program

Fujitsu Limited today announced the launch of the Fujitsu Accelerator Program for Defense Tech, a collaborative program aimed at fostering innovation in the defense sector. The program will be implemented as part of an ongoing research commission from Japan’s Acquisition, Technology & Logistics Agency (ATLA).

INVESTMENT

Novacap eyes defense tech with USD 3.8bn latest technology fund

As governments on both sides of the Atlantic ramp up spending on defense, the technologies they are turning to are providing fertile ground for investors specializing in the space.

Novacap is eyeing increased opportunities to invest in defense tech with its seventh technologies fund, which closed on nearly USD 3.8bn last month. The Montreal-based firm is looking to capitalize on what it sees as secular trends shaping the current geopolitical environment.

ARTIFICIAL INTELLIGENCE

Defense tech CEO warns US lead over China in AI is ‘extremely small’

Anduril CEO Palmer Luckey said America was barely winning against China in the artificial intelligence (AI) race during a Monday episode of “The Axios Show.”

While the United States and China compete to develop the most advanced AI, their different economies, governments and ambitions present both advantages and disadvantages, experts told the Daily Caller News Foundation in 2023. Luckett told Axios defense reporter Colin Demarest on the show that America’s small lead was due to China’s success at duplicating U.S. models and its undemocratic government.

TECHNOLOGY

Parry Labs CEO Recognition Underscores Leadership-Driven Defense Tech Positioning

A LinkedIn post from Parry Labs highlights that co‑founder and CEO John Parkes has been recognized as a back‑to‑back Wash100 award recipient. The post links this recognition to the company’s emphasis on addressing complex defense challenges and delivering capabilities to military operators more quickly than legacy providers.

The Pentagon’s Favorite Tech Guy Is This Hawaiian Shirt-Wearing Founder

Palmer Luckey, who founded the defense tech start-up Anduril, has become the It Guy.

Wall Street is betting on Ukraine's drone technology

A Ukrainian drone technology startup saw the most explosive U.S. stock market debut in the last year during its first day trading on Nasdaq. Shares in Swarmer, whose software enables single pilots to control hundreds of drones at once, soared over 700% before closing at $31 on Tuesday.

The company, based in Austin, Texas, but founded in Ukraine, has been used widely by the Ukrainian military since 2024. Erik Prince, the founder of the U.S. private military contractor Blackwater, joined Swarmer as non-executive chairman last month.

Defense Unicorns demonstrates rapid software delivery to F-22 Raptor

The demonstration sets the stage for Air Force pilots and maintainers to update software on aircraft in an OMS environment.

POLICY

The Danger of Vibe Patriotism in Defense Tech

At conferences, in pitch decks, and increasingly in public writing, “service” is increasingly being used to describe the work of startup founders, employees, and venture capital investors in defense technology. The claim, sometimes explicit, more often implied, is that building defense technology is itself a form of service comparable to uniformed military service.

ACQUISITION

Anduril acquires ExoAnalytic Solutions in push for Trump's Golden Dome

Anduril acquired missile tracking and intelligence firm ExoAnalytic Solutions as it extends its reach into U.S. defense interests in space, the company announced on Wednesday.

Through the acquisition, Anduril plans to mobilize ExoAnalytic’s sweeping network of telescopes and missile defense tracking to gather data that improves its ground and satellite capabilities.

EUROPE

Ukraine ready to share combat expertise and drone tech with Japan, ambassador says

Ukraine is ready to share the benefits of its hard-won military experience with Japan, offering Tokyo both front-line lessons and battle-tested weapons that could reshape bilateral cooperation, especially in areas such as drones, air defense and industrial partnerships, the country’s envoy to Japan said in a recent interview.

STARTUPS

American Dynamism and its defense tech descend on D.C.

"The government has made tremendous changes over the last couple years to really say that they don't want to have a one-sided barbell prioritizing legacy incumbents and slow, bureaucratic process," David Ulevitch, a general partner at venture-capital juggernaut Andreessen Horowitz, told Axios.

Caveret Ventures launches second Israeli defense-tech accelerator in Texas

The accelerator functions as a comprehensive soft‑landing platform, offering direct access to US military stakeholders, federal customers, defense primes, and investor groups