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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, lately 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,” reminiscent of Lockheed Martin, Northrop Grumman, Boeing, Normal Dynamics, and RTX (previously Raytheon).
“There’s extra money 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 price range, however the development is all constructive.”
Different examples of protection tech startups difficult the incumbents embody SpaceX and Palantir Applied sciences, stated 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 “crucial expertise gaps which are actually necessary to nationwide safety,” stated 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 the primary half of 2025, and will exceed its 2021 peak if the tempo stays fixed for the remainder of the 12 months, in keeping with JPMorgan.
‘The battlefield is altering’
As the worldwide battle panorama modified over the previous many years, the U.S. Division of Protection has recognized a number of applied sciences which are crucial to nationwide safety, together with hypersonics, power resilience, area expertise, built-in sensing and cyber.
“In a post-9/11 world, the whole Division of Protection successfully targeted on … the worldwide battle on terrorism. It was our navy versus insurgents, guerrillas, uneven warfare, comparatively low-tech fighters usually,” stated Darby.
However battle in the present day is extra targeted on “nice energy competitors,” stated 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 focus 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.”
At present, a few of these Silicon Valley “neoprimes” are creating 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 purposes, however they’re additionally clearly a pressure multiplier in a navy context,” stated Darby. “[The] Division of Struggle 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, supplied a transparent and strategic roadmap for each buyers and entrepreneurs, stated 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 present, 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 individuals — 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,'” stated 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 stated.
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 may 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 somewhat to create a reputable deterrent that daunts aggression,” stated Mak.
“Nobody in protection tech is seeking to wage battle, somewhat, it is seeking to deter it and wanting adversaries to suppose twice earlier than threatening peace and stability,” Mak added.
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