At Andreessen Horowitz’s house recent American Dynamism summit, Hadrian’s founder and CEO Chris Power painted a picture of the country in peril. “I’m here to talk to you about an existential risk to the future of the Republic and how Adriano is trying to resolve it.” he started.
His words, a mix of rationalism and Marcus Aurelius, were not out of place at the event, which brought together a mix of investors, founders, lawmakers and other Washington officials to discuss the problems facing the country. A notable number of talks were related to defense and national security, in line with the American Dynamism team’s investment portfolio, which includes bets on defense technology startups such as Hadrian, Anduril and Shield AI.
Just a few years ago, many investors thought that handing over a check to a defense-first startup was a proposition that simply didn’t make sense. The tides have clearly turned: a16z is one of many companies that has become more interested in defense and national security. Sales book data supports this warming to defense technology. From January to October last year, venture capital-backed firms pumped $7 billion into aerospace and defense companies, massive growth that stands in stark contrast to relative sluggishness in other sectors. Some transactions in recent months include Anduril’s Series E for US$1.4 billion; Shield AI’s $225 million Series E; and the $75 million Series B from Vannevar Labs.
There are many reasons for this uptick in interest in defense technology, but driving them all is a new and realistic view spreading among some technologists and venture capitalists. He sees global antagonisms that threaten the stability of american peace; he sees the United States rotting from the inside out due to bloat and lethargy. As a result, the Silicon Valley mentality has returned to its defensive roots, embracing the role that VC-funded startups can play in maintaining US military dominance and technological supremacy around the world.
“If you believe in democracy, democracy demands a sword,” a16z general partner David Ulevitch said in a recent interview with TechCrunch. And Silicon Valley will be where it takes hold.
