Where Are We With Dual Use Ventures?

Part of the Deep Tech/Dual Use Series

It’s been 5 years since the launch of the Defense Innovation Unit. DIU’s founding oftentimes is considered a pivotal moment when the Defense Department recognized that it had to source innovation differently. The innovation swell has come a long way. DIUX came in 2015, DIB in 2016, AFWERX in 2017, Army Futures Command in 2018, and NavalX in 2019. Innovation outposts in Silicon Valley still exist, but they are also located in other meaningful innovation geographies. There is now a networked set of innovation nodes, technology scouting is more sophisticated, and there is even a burgeoning investor set that considers investment in mission oriented dual use companies.

I’m excited about this burgeoning investor set. But, I caution that venture investors backing national security facing startups is not a panacea. The policy and culture layers of the national security innovation stack sorely need addressing. Those policies that favor incumbents, the culture that more readily says “no” to new ideas and new approaches, is what needs ridding to enable us to move at speed.

The Air Force recogized this and established AFWERX in order to tackle some of these challenges. It’s been exciting to watch their progress. In fact, AFWERX ended 2020 on a high note. Several of the companies that have engaged in their program, largely through the Open Topic topic, came with private funding. The chart below, which they presented in December 2020, itemizes the most recent funding…