Adam Cole, APRᐩM’s Post

The Defense Department has again realized that accelerating the incorporation of disruptive technology is most effective when reporting to the Secretary of Defense. The Department is now applying commercial technology to its most important problems, specifically, what the military commands of the Indo-Pacific and Europe face in deterring China and Russia. Now with nearly $1 billion from Congress, DIU can field new capabilities in one to two years to support those military commands without waiting for multi-year budget alignment or traditional acquisition processes which on average field new capabilities in 17 years. In addition, venture capital has begun to support defense tech in an unprecedented way. New firms like ours, Shield Capital, have formed to support national security applications while more established venture firms like Andreesen Horowitz, Lightspeed, and Bessemer Ventures have developed practices focused on defense within their firms. In aggregate, investment in defense tech is up 5x in the past six years and now represents $40 billion annually. With a larger amount of DoD’s budget focused on commercial tech, this is a win-win for the nation—new paths for businesses to ramp revenues faster while modernizing capabilities for the warfighter.

Skylark was honored to be listed in the Carnegie Endowment for International Peace overview on #INDUS-X. "The growth of the Indian defense start-up ecosystem and micro, small, and medium enterprises (MSME) also offer the United States’s venture capital industry an emerging set of opportunities. Many Indian start-ups have sought, and successfully secured, participation from Silicon Valley. For example, U.S.-based Artiman Ventures’ investment in Tonbo, Accel and @IDG Partners in Axio Biosolutions, Intel Capital’s in Saankhya Labs, and WRVI capital’s in ideaForge. This is a growing trend, with an increasing number of Silicon Valley venture funds looking toward promising start-ups in India. Indian defense and aerospace start-ups are also, in turn, exploring the U.S. market— 3rdiTech Inc., NewSpace Research and Technologies, Astrome, Skylark Labs, and QNu Labs, to name a few." Learn more about the initiative here and stay tuned for more information on Skylark’s involvement. https://lnkd.in/e6RttCRi

The future of defense innovation hinges on a swift transformation of how the military approaches technology and talent. By leveraging commercial technologies and fostering collaboration with the private sector, the Pentagon can unlock immense potential for national security and economic growth. Read more: #Modernization #NationalSecurity

First a bit of news: this month’s newsletter is half as long! We’re switching to a twice-a-month cadence that will feature our reported feature, "The Big Idea," at the end of the month and the "Five Ways to Think About…" feature mid-month. We’ll keep the shorter features, "Advances That Matter" and "Long Reads," in every issue. This month’s feature looks at a surge in spending on so-called dual-use defense technologies that can be deployed for both military and commercial purposes. Russia’s invasion of Ukraine and tensions between China and the West have lent a new urgency to defense innovation, and because militaries are not known for their lightning quick adoption of new technologies, finding a civilian market is often a first step for startups needing early revenue. Read our latest monthly newsletter for more. Image Credit: Ian Lyman / Midjourney https://lnkd.in/dbjkvzxd

Unlocking New Opportunities in Israel's Civil Defense Tech 📡 2024 marks a pivotal year for Israel's civil defense tech sector, where innovation meets necessity. As geopolitical tensions rise and defense budgets increase globally. Israel's historical context as a startup nation, driven by the need to develop indigenous defense capabilities, has birthed giants in the field such as Rafael Advanced Defense Systems, Elbit Systems, and ELTA Systems Ltd. These firms not only have paved the way by reaching billions in annual revenues but have also set a stage for groundbreaking advancements in civilian applications of defense technology. This sector, particularly strong in cybersecurity, autonomous systems, and aviation, has seen significant growth. It’s not just about innovation for military purposes; the technologies developed here have vast potential to transform civilian sectors as well, offering dual-use applications that enhance both security and commercial efficiency. The Israeli civil defense tech sector is bustling with opportunities that align perfectly with our investment strategy at Tachles VC, targeting startups that are at the forefront of innovation and ready to meet the demands of both today and tomorrow. #Innovation #DefenseTech #VentureCapital #Israel https://lnkd.in/e_D7zEZs 

Japanese government initiatives designed to bridge civilian innovation and national security through a groundbreaking startup ecosystem aim to transform the country's defence industry, writes Kousuke Saitou.

Great news we have movement - time to accelerate the build allied model. The Defense Innovation Unit (DIU) is working quickly to determine how and where to spend the nearly $1 billion US Congress provided in March through the fiscal 2024 appropriations act. The $983 million allocation, nearly $800 more than what DIU received last year, will support the growing organization’s mission to help the United States Department of Defense quickly foster and field commercial capabilities in large numbers, according to DIU director Doug Beck. As reported, "due to prolonged budget deliberations in Congress that delayed the release of appropriations, DIU’s funding came more than five months into the fiscal year, presenting Beck’s team with the challenge of using that money in a short period of time". Beck didn’t discuss the specific initiatives DIU will funnel the funding toward — or what additional staff he might need to support these efforts — but said it will fall in four primary buckets: - accelerating existing programs, - launching new ones, - supporting projects housed within other DoD #innovation organizations, and - addressing some of the challenges commercial companies face as they try to work with the DoD. A pretty broad agenda. Hopefully allies and partner nations, particularly in the #indopacific, will not be forgotten as these programs are progressed in a multidomain environment. One that is becoming increasingly contested. #defence #defense U.S. Indo-Pacific Command Armatus.ai Bernice Glenn Kissinger US Army US Navy United States Air Force U.S. Space Command Defence Australia Pacific International Center For High Technology Research - PICHTR Japan - The Government of Japan Japan Ministry of Defense David Anderson #innovation #china #taiwan #technology Jerry McGinn, Ph.D. Tomoki Matsuo Center for Strategic and Budgetary Assessments (CSBA) Center for Strategic and International Studies (CSIS) NATO Support and Procurement Agency (NSPA) https://lnkd.in/g6FWV3YT

DOD, DEI, DOGE and DIB: Innovation or Bureaucracy ? The Department of Defense (DOD) bureaucratic focus on climate initiatives and Diversity, Equity, and Inclusion (DEI) compromised our national security. The DOD dropped the ball in Benghazi, Afghanistan, and elsewhere. Warriors should fight wars, not cultural picadillos. They should be tough, smart, and ready to rock and roll. Period. Today, the cancellation of federal DEI initiatives and the launch of the Department of Government Efficiency (D.O.G.E.) are steps in the right direction. Will Maybe D.O.G.E. will axe the Defense Innovation Board (DIB)? That would be innovative. https://lnkd.in/gCh2xjDn #DEI #warfighting #warriors #defenseinnovationboard #DOD #DOD #DIB

“The geopolitical climate, soaring military budgets, and the need for innovation in modern warfare are setting the stage for a defense tech revolution,” writes Amit Pilowsky, Co-Founder and Partner at Key1 Capital "What’s changed? First and foremost, there’s the recognition that future warfare will be determined by superior technology rather than the number of tanks. The drone war in Ukraine and the missile attack by Iran against Israel demonstrate how technology dictates battlefield strategies. Today the “edge” lies not in hardware but in software prowess, enabling startups to become significant players. Secondly, government entities and militaries have come to recognize that embracing rapid innovation and eliminating barriers to entry are essential to maintaining a technological edge. This includes the Pentagon’s Defense Innovation Unit (DIU.), and NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA). This strategic shift creates opportunities for entrepreneurs with innovative ideas to prove themselves. "

The recent surge in defense startup valuations, highlighted in The Daily Upside’s article, underscores a pivotal shift in the defense technology landscape. Companies like Palantir and Anduril are leading this transformation, securing significant government contracts and driving innovation. At NovaSpark Energy, we are proud to contribute to this momentum. Our recent contract with the U.S. Marines, Defense Innovation Unit (DIU) and the Air Foce to develop mobile hydrogen fuel generation solutions exemplifies our commitment to advancing sustainable energy technologies for defense applications. As the defense sector increasingly embraces cutting-edge solutions, NovaSpark Energy remains dedicated to delivering innovative, sustainable energy systems that meet the evolving needs of our national security infrastructure. https://lnkd.in/gP7NXf6A