Guvendemir | E+ | Getty Photographs
A wave of protection tech startups in Silicon Valley is drawing billions in funding and reshaping America’s nationwide safety.
Anduril Industries, lately valued at $30.5 billion following its newest funding spherical, is among the many so-called “neoprimes” — firms difficult the dominance of legacy contractors, dubbed “primes,” akin 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, informed CNBC. “It is nonetheless a fraction of the general funds, however the development is all optimistic.”
Different examples of protection tech startups difficult the incumbents embrace SpaceX and Palantir Applied sciences, mentioned Darby, who can be a founding member of the U.S. Division of Protection’s Protection Innovation Unit.
In contrast to the primes, these startups are quicker, leaner and software-first — with lots of them constructing issues that may assist shut “essential expertise gaps which might be actually essential 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 by means of the primary half of 2025, and will exceed its 2021 peak if the tempo stays fixed for the remainder of the 12 months, based on JPMorgan.
‘The battlefield is altering’
As the worldwide battle panorama modified over the previous a long time, the U.S. Division of Protection has recognized a number of applied sciences which might be essential to nationwide safety, together with hypersonics, power resilience, house expertise, built-in sensing and cyber.
“In a post-9/11 world, all the Division of Protection successfully targeted on … the worldwide battle on terrorism. It was our army versus insurgents, guerrillas, uneven warfare, comparatively low-tech fighters generally,” mentioned Darby.
However battle immediately is extra targeted on “nice energy competitors,” mentioned Mak.
The battlefield is altering and new applied sciences are wanted … warfare not being restricted to land, sea, air. There’s additionally cyber and house domains which have grow to be 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 not being restricted to land, sea, air. There’s additionally cyber and house domains which have grow to be contested.”
At this time, a few of these Silicon Valley “neoprimes” are growing not simply weapons, but additionally dual-use applied sciences that may be utilized each commercially and by militaries.
“So issues like synthetic intelligence and autonomy have broad, sweeping industrial purposes, however they’re additionally clearly a power multiplier in a army context,” mentioned Darby. “[The] Division of Conflict is quickly assessing and adopting these dual-use applied sciences … they’re sending alerts to the funding world, to the protection industrial base, that the U.S. authorities wants these items.”
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.
At this time, Mak says the syndicate’s roughly 250 members embrace tech founders, Wall Avenue financiers, firm executives, intelligence officers, former army leaders and Navy SEALs. Collectively, they’ve invested in firms like Anduril Industries, Defend AI, Hermeus, Ursa Main and Aetherflux.
“Total, we imagine that ‘neoprimes’ can’t exist within the summary. They require folks — people who carry technical experience, who carry a deep sense of mission, and who contribute complementary voices and skills. Collectively, this coalition types what we’re convening and calling the ‘new guard,'” mentioned Mak.
She added that trendy 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 material of nationwide safety,” Mak mentioned.
Mak and Darby each agree that as new applied sciences develop and make their method onto battlefields globally, it is altering the way in which militaries struggle, which might additionally pose new threats.
“You are seeing these technologists, these builders … constructing protection tech, and the explanation why they’re doing so, is to not provoke battle, however fairly to create a reputable deterrent that daunts aggression,” mentioned Mak.
“Nobody in protection tech is trying to wage battle, fairly, it is trying to deter it and wanting adversaries to assume twice earlier than threatening peace and stability,” Mak added.
