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A wave of protection tech startups in Silicon Valley is drawing billions in funding and reshaping America’s nationwide safety.
Anduril Industries, not too long ago valued at $30.5 billion following its newest funding spherical, is among the many so-called “neoprimes” — corporations difficult the dominance of legacy contractors, dubbed “primes,” similar to Lockheed Martin, Northrop Grumman, Boeing, Normal Dynamics, and RTX (previously Raytheon).
“There’s more cash than ever going to what we name the ‘neoprimes'” Jameson Darby, co-founder and director of autonomy at funding syndicate MilVet Angels, or MVA, instructed CNBC. “It is nonetheless a fraction of the general funds, however the development is all constructive.”
Different examples of protection tech startups difficult the incumbents embody SpaceX and Palantir Applied sciences, mentioned Darby, who can also be a founding member of the U.S. Division of Protection’s Protection Innovation Unit.
Not like the primes, these startups are sooner, leaner and software-first — with a lot of them constructing issues that may assist shut “essential know-how gaps which might be actually necessary to nationwide safety,” mentioned Ernestine Fu Mak, co-founder of MVA and founding father of Courageous Capital, a enterprise capital agency.
Enterprise funding for U.S.-based protection tech startups totaled about $38 billion via the primary half of 2025, and will exceed its 2021 peak if the tempo stays fixed for the remainder of the 12 months, in line with JPMorgan.
‘The battlefield is altering’
As the worldwide struggle panorama modified over the previous many years, the U.S. Division of Protection has recognized a number of applied sciences which might be essential to nationwide safety, together with hypersonics, vitality resilience, area know-how, built-in sensing and cyber.
“In a post-9/11 world, your complete Division of Protection successfully centered on … the worldwide struggle on terrorism. It was our navy versus insurgents, guerrillas, uneven warfare, comparatively low-tech fighters generally,” mentioned Darby.
However struggle at present is extra centered on “nice energy competitors,” mentioned Mak.
The battlefield is altering and new applied sciences are wanted … warfare now not being restricted to land, sea, air. There’s additionally cyber and area domains which have change into contested.
Ernestine Fu Mak
Co-founder, MilVet Angels
“The main target is extra on deterring and competing with [adversaries] in these very high-tech, multi-domain conflicts,” Mak added. “The battlefield is altering and new applied sciences are wanted… warfare now not being restricted to land, sea, air. There’s additionally cyber and area domains which have change into contested.”
Right this moment, a few of these Silicon Valley “neoprimes” are growing not simply weapons, but in addition dual-use applied sciences that may be utilized each commercially and by militaries.
“So issues like synthetic intelligence and autonomy have broad, sweeping business functions, however they’re additionally clearly a pressure multiplier in a navy context,” mentioned Darby. “[The] Division of Conflict is quickly assessing and adopting these dual-use applied sciences … they’re sending indicators to the funding world, to the protection industrial base, that the U.S. authorities wants this stuff.”
That route from the federal government has, in flip, offered a transparent and strategic roadmap for each traders and entrepreneurs, mentioned Mak.
The ‘new guard’
On Sept. 17, MVA got here out of stealth mode after quietly backing some main protection tech startups since 2021.
Right this moment, Mak says the syndicate’s roughly 250 members embody tech founders, Wall Avenue financiers, firm executives, intelligence officers, former navy leaders and Navy SEALs. Collectively, they’ve invested in corporations like Anduril Industries, Protect AI, Hermeus, Ursa Main and Aetherflux.
“General, we imagine that ‘neoprimes’ can not exist within the summary. They require folks — people who convey technical experience, who carry a deep sense of mission, and who contribute complementary voices and abilities. Collectively, this coalition kinds what we’re convening and calling the ‘new guard,'” mentioned Mak.
She added that fashionable nationwide safety requires each the “warrior’s perception on the battlefield” and the “builder’s drive for innovation”.
“Working along with engaged, knowledgeable patriots whose participation strengthens our protection ecosystem and reinforces the very cloth of nationwide safety,” Mak mentioned.
Mak and Darby each agree that as new applied sciences develop and make their approach onto battlefields globally, it is altering the best way militaries battle, which might additionally pose new threats.
“You are seeing these technologists, these builders … constructing protection tech, and the rationale why they’re doing so, is to not provoke battle, however relatively to create a reputable deterrent that daunts aggression,” mentioned Mak.
“Nobody in protection tech is seeking to wage struggle, relatively, it is seeking to deter it and wanting adversaries to assume twice earlier than threatening peace and stability,” Mak added.
