Defence CVCs collide in supply chain crunch
The corporate VC arms of defence giants including Lockheed Martin and RTX are running into more than voracious VC specialists in their pursuit of the latest wave of military-focused tech firms. They’re running into each other.
It’s becoming increasingly common to have two or even three big defence companies as investors, mainly at the series A level, though sometimes during a seed round. That’s posing new challenges for strategy and financial management.
The Pentagon has redoubled efforts to tap innovative technology and direct more funding outside the traditional defence industrial base. The pipeline of opportunities has never been better, say defence CVC executives.
Nor has the competition been fiercer to gain an edge in areas such as space systems, AI and advanced manufacturing, as well as the contracts starting to flow to new entrants from the Pentagon and intelligence agencies.