The SVDG recently introduced the inaugural version of the NatSec100, a “newly developed, annual ranked list of the top venture-funded defense and dual-use startups. It was developed to offer a data-driven snapshot of the evolving techno-security ecosystem” – including policy recommendations.
About the Silicon Valley Defense Group [SVDG]
In 2015, Senator John McCain sought help from leaders in tech and finance to improve relations between the innovation hub of Silicon Valley and the technology demands of the defense market. The result: The Silicon Valley Defense Group. After meeting with Senator McCain, [the founders of the SVDG] continued to engage policymakers to help bridge the gap between government and Silicon Valley. Before officially becoming a 501C3 in 2020, SVDG operated for several years as an informal working group, uniting the people, capital, and ideas necessary to ensure allied democracies retain a durable techno-security advantage. SVDG aims to develop cross-cutting relationships between Silicon Valley startups, investors, and the defense ecosystem. To achieve this goal, SVDG seeks to engage and motivate dual-use innovators and venture capitalists to support the broad mandate for defense innovation. (1)
The Inaugural SVDG National Security 100 (NatSec100)
The SVDG recently introduced the inaugural version of the NatSec100, a “newly developed, annual ranked list of the top venture-funded defense and dual-use startups. It was developed to offer a data-driven snapshot of the evolving techno-security ecosystem.
The list is by no means a perfect indicator of the future success or failure of the companies it comprises; rather, it is intended to drive conversation around the emerging tech ecosystem in national security. While the DOD has long resisted “picking winners,” the NatSec100 ranks companies based on which are the comparative front-runners in the defense and national security space each year.
SVDG will be sharing a series of follow-up efforts including webinars, case studies, and roundtables to facilitate discussions and knowledge sharing. Additionally, deeper dives into the policy recommendations will be undertaken to critically assess and refine strategies for more effective implementation. (2)
Source: https://www.siliconvalleydefense.org/natsec100-2023/#list
Rank | Name | Company Description | Total funding raised (millions) | Headquarters | CEO | Year Founded |
|---|---|---|---|---|---|---|
1 | Develops spacecraft to make life multi-planetary; develops space launch vehicles to increase accessibility of materials | $8,999.86 | Hawthorne, CA | 2002 | ||
2 | Develops defensive AI-based software and hardware for national security | $2,315.10 | Costa Mesa, CA | 2017 | ||
3 | Data analytics platform to simplify data | $3,497.36 | San Francisco, CA | 2013 | ||
4 | Commercial space transportation technology to facilitate life in space | $1,438.22 | Louisville, CO | 2021 | ||
5 | Cryptocurrency investigation and compliance software | $536.72 | New York City, NY | 2014 | ||
6 | Provider of human-rated space infrastructure and services | $274.20 | Houston, TX | 2016 | ||
7 | Develops 3D printed rockets for launching payloads to orbit | $1,334.54 | Long Beach, CA | 2015 | ||
8 | Developer of a performance monitoring platform | $569.23 | New York, NY | 2014 | ||
9 | AI based drone technology | $575.00 | San Diego, CA | 2015 | ||
10 | Centralized data platform supporting data analytics and enterprise AI development | $851.80 | New York, NY | 2013 | ||
11 | Developer of autonomous drones for commercial and government use | $644.68 | Redwood City, CA | 2014 | ||
12 | Data-centric platform accelerates AI training and development | $602.86 | San Francisco, CA | 2016 | ||
13 | Construction-scale additive manufacturing | $451.00 | Austin, TX | 2017 | ||
14 | Lithium-sulfur battery technology | $210.00 | San Jose, CA | 2015 | ||
15 | Practical AI quantum software | $500.00 | New York, NY | 2022 | ||
16 | Infrastructure cybersecurity software | $358.20 | Hanover, MD | 2016 | ||
17 | Space simulation and analytics platform | $81.82 | El Segundo, CA | 2017 | ||
18 | Developing hypersonic aircraft | $48.28 | Houston, TX | 2020 | ||
19 | Enterprise AI platform to automate data | $1,048.21 | Boston, MA | 2012 | ||
20 | Developer of turnkey propulsion technologies for engines | $286.10 | Berthoud, CO | 2015 | ||
21 | Data automation for hybrid clouds | $1,056.73 | Palo Alto, CA | 2014 | ||
22 | Integrated SDN platform to integrate cloud, networking, and security services | $330.25 | Santa Clara, CA | 2009 | ||
23 | Enterprise analytics platform centralizes and accelerates data | $677.45 | Mountain View, CA | 2012 | ||
24 | First utility-scale quantum computer | $665.00 | Palo Alto, CA | 2016 | ||
25 | Satellite radar imagery technology | $283.99 | San Francisco, CA | 2016 | ||
26 | Developer of reusable rockets | $74.54 | Kent, WA | 2019 | ||
27 | Hardware for accelerated analytics and AI | $1,136.60 | Palo Alto, CA | 2017 | ||
28 | Advanced simulation infrastructure software for autonomous vehicles | $351.50 | Mountain View, CA | 2017 | ||
29 | HPM technology software to counter UAS | $290.59 | Torrance, CA | 2018 | ||
30 | Orbital maneuvering vehicles for economical delivery | $30.00 | El Segundo, CA | 2021 | ||
31 | Space technologies for sustainable expansion | $500.00 | Kent, WA | 2000 | ||
32 | Automated cloud platform for software delivery | $454.55 | San Jose, CA | 2010 | ||
33 | AI-accelerating computing chips | $723.00 | Sunnyvale, CA | 2015 | ||
34 | Satellite internet company for regional connectivity and broadcasting | $393.92 | San Francisco, CA | 2015 | ||
35 | Low-cost vehicles to launch small satellites | $419.35 | El Segundo, CA | 2017 | ||
36 | Develops software-configured, quantum-enabled products | $184.50 | Louisville, CO | 2007 | ||
37 | Data platform designed to accelerate enterprises | $263.00 | New York, NY | 2016 | ||
38 | Low-flying satellites to collect ultra-high-resolution imagery | $11.07 | Louisville, CO | 2017 | ||
39 | Develops climate-focused satellite constellation technology | $35.00 | Mountain View, CA | 2021 | ||
40 | First confidential AI platform | $22.00 | San Francisco, CA | 2020 | ||
41 | Wearable performance optimization device | $407.40 | Boston, MA | 2011 | ||
42 | Autonomous marine surface vehicles | $186.20 | Alameda, CA | 2012 | ||
43 | Satellite platform to assist the launch and operations of satellites | $156.16 | San Francisco, CA | 2017 | ||
44 | Augmented reality (AR) for military training applications | $110.90 | Orlando, FL | 2018 | ||
45 | Software-centric platform accelerates high-performance machine learning inference | $187.80 | San Jose, CA | 2018 | ||
46 | Printing platform designed to print parts with complex geometries | $253.13 | Somerville, MA | 2011 | ||
47 | Data-driven protection and privacy compliance platform | $196.26 | New York, NY | 2016 | ||
48 | Software-enhanced compute systems and GPU cloud services | $68.21 | San Jose, CA | 2012 | ||
49 | Machine learning products for critical national security problems | $91.10 | Palo Alto, CA | 2019 | ||
50 | On-demand digital manufacturing ecosystem | $195.62 | San Francisco, CA | 2013 | ||
51 | Electronic-photonic chipset for computers | $195.10 | Emeryville, CA | 2015 | ||
52 | CBRS shared spectrum technology for wireless industry | $206.00 | Arlington, VA | 2012 | ||
53 | Counter-drone security technology platform | $133.01 | Sterling, VA | 2014 | ||
54 | Develops autonomous and semi-autonomous transportation vehicles | $228.00 | Clarksburg, MD | 2002 | ||
55 | Autonomous flight technology designed for fixed-wing aircraft | $146.00 | Boston, MA | 2018 | ||
56 | Developer of a hypersonic aircraft | $118.90 | Atlanta, GA | 2018 | ||
57 | AI to analyze increasingly complex data stores | $340.49 | Austin, TX | 2013 | ||
58 | Develops launch vehicles for commercial launches to orbit | $30.20 | Cedar Park, TX | 2017 | ||
59 | Low-power satellite antenna for mobile satellite-cellular connectivity | $524.87 | McLean, VA | 2012 | ||
60 | Vehicle inspection systems to detect threats or modifications of vehicles | $201.56 | Teaneck, NJ | 2016 | ||
61 | Technology-enabled logistic platform to expedite deliveries | $138.50 | Carlsbad, CA | 2016 | ||
62 | Manufacturer of sustainable supersonic aircraft | $269.13 | Dove Valley, CO | 2014 | ||
63 | Risk management platform | $37.00 | Rockville, MD | 2016 | ||
64 | Online cybersecurity platform | $174.05 | San Francisco, CA | 2013 | ||
65 | Robots for comprehensive asset inspections | $120.45 | Pittsburgh, PA | 2013 | ||
66 | Microwave-based plasma technology to produce nanomaterials | $214.10 | North Andover, MA | 2014 | ||
67 | Logistics assurance platform to manage supply-chain risk | $258.62 | Arlington, VA | 2005 | ||
68 | Constellation of satellites that capture both visible and thermal imagery simultaneously | $60.22 | Broomfield, CO | 2020 | ||
69 | 2-way communication drones and aerospace technology systems | $82.20 | Seattle, WA | 2017 | ||
70 | GPS technology for automated navigation for autonomous applications | $200.18 | San Francisco, CA | 2012 | ||
71 | Mission-focused, defense and security AI products | $223.80 | Washington, DC | 2019 | ||
72 | Satellite communications optimization control software | $34.80 | Traverse City, MI | 2015 | ||
73 | Developer of modern test and measurement devices based on a software-configurable hardware platform | $58.96 | San Diego, CA | 2014 | ||
74 | Space refueling technology designed to offer remote monitoring services | $29.15 | Lafayette, CO | 2018 | ||
75 | Hybrid rocket engines with 3D-printed fuel | $26.75 | Addison, TX | 2019 | ||
76 | Sustainable spacecraft propulsion systems | $28.07 | El Segundo, CA | 2018 | ||
77 | Affordable rocket propellant for orbital access | $29.20 | Huntsville, AL | 2016 | ||
78 | Technology platform for public open cloud infrastructure | $254.07 | Campbell, CA | 1999 | ||
79 | Cloud-based software and hardware infrastructure platform for scientific and engineering simulations | $157.40 | San Francisco, CA | 2011 | ||
80 | Aviation and aerospace technology for space exploration | $177.80 | Denver, CO | 2019 | ||
81 | space-based radio frequency mapping and analytics system for geospatial data analytics | $305.00 | Herndon, VA | 2015 | ||
82 | Workforce-oriented AI robotic process automation software | $1,172.97 | San Jose, CA | 2003 | ||
83 | Model Intelligence platform for business impact | $42.28 | Redwood City, CA | 2019 | ||
84 | Accelerating commercial software development, testing, and deployment into national security networks | $44.23 | Wilmington, DE | 2014 | ||
85 | Democratizing space transportation technology | $26.66 | Tucson, AZ | 2019 | ||
86 | Autonomous flight technology for various aircraft | $58.00 | San Francisco, CA | 2016 | ||
87 | Secure commercial operations in low Earth orbit | $82.00 | Menlo Park, CA | 2016 | ||
88 | Drone defense technology for airspace security | $45.00 | San Diego, CA | 2015 | ||
89 | Aerospace launch mission services | $265.75 | Bellevue, WA | 2009 | ||
90 | AI tool to extract information from text documents | $138.25 | Redwood City, CA | 2015 | ||
91 | Virtual mobile infrastructure to eliminate security risks | $30.50 | Reston, VA | 2021 | ||
92 | Automated security operations platform | $59.80 | San Jose, CA | 2015 | ||
93 | Cybersecurity platform to defend operational technology platforms | $105.50 | Arlington, VA | 2019 | ||
94 | AI used to automate the analysis of massive datasets | $237.00 | San Francisco, CA | 2014 | ||
95 | Collaboration tool, online backup and file hosting service | $36.90 | Lenexa, KS | 2007 | ||
96 | Commercial space services fueled by a multi-sensor platform to store, transmit data, achieve data fusion and on orbit processing | $25.20 | Redmond, WA | 2018 | ||
97 | Software-defined communication payloads for airborne and in-orbit platforms | $88.20 | Broomfield, CO | 2017 | ||
98 | Device security platform unguarded firmware and hardware defense | $63.04 | Portland, OR | 2017 | ||
99 | Platform for in-space manufacturing | $42.00 | El Segundo, CA | 2020 | ||
100 | Autonomous aircraft systems and software to expedite shipping services | $56.00 | San Francisco, CA | 2016 |
Methodology
Silicon Valley Defense Group (SVDG) collaborated with Franklin Templeton and Balyasny Asset Management to compile the NatSec100 list, taking into account the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E))’s 14 Critical Technology Areas and private conversations with senior leaders from the DOD and intelligence community. Eligible companies are all engaged in the Department of Defense (DOD) critical technology areas, and the rankings reflect weighted, quantitative factors that allowed us to analyze companies’ size, growth, and momentum. Specifically, we analyzed headcount growth, total capital raised, and fundraising momentum, to assign a weighted score to each company. While these metrics are by no means perfect indicators of success for these companies, they demonstrate momentum in the world of venture-backed growth. All data gathered for the NatSec100 2023 is through the end of April 2023. (3)
What Next?
SVDG Policy Recommendations
Better Reporting Metrics
It’s important to track the success of defense and dual-use startups in the national security market to judge to health of the national security innovation ecosystem. These metrics should monitor private funding and company growth, as well as government contracts and procurement of emerging technologies. It should track beneficiaries of the Defense Innovation Unit’s (DIU) Other Transaction Authorities (OTAs), the recipients of AP-FIT grants, the Title III/Defense Production Act winners, and those that secure AFWERX STRATFI/TACFI awards. These will provide a clearer picture of the health of the national security innovation ecosystem and the effectiveness of DOD/IC efforts to support innovative challengers to the established defense industrial base.
Private Capital Partnership Consideration
Another step towards enhancing our techno-security landscape is to consolidate DOD efforts in connecting with private capital. These efforts, currently distributed across various departments like the Office of Strategic Capital, DIU, and Service-led initiatives, should be streamlined and consolidated. This centralization would improve efficiency, coordination, and accountability, and it could further be enhanced by linking with Intelligence Community efforts, like In-Q-Tel.
Nurturing New and Emerging Suppliers
If the DOD is truly committed to cultivating an emerging industrial base to supplement the established industrial base, it is essential to act decisively. This means seeking out and insisting on the inclusion of new suppliers, with a specific focus on those without a prior record of performance. It’s an approach that promotes innovation and drives competitiveness.
The Space Force’s approach with the new National Security Space Launch (NSSL) serves as a good model. Their Request for Proposals (RFP) expanded the supplier base, increasing the number of winners from two in the previous award to five in 2023. This not only broadened the playing field but also opened opportunities for 1-3 members of the NatSec100 to secure a contract, even without prior space exploration credentials.
However, not all sectors are embracing this forward-thinking strategy. A case in point is the Over-the-Horizon (OTH) munitions sector. The Ukraine conflict has highlighted the urgent need for new solid munition suppliers, like Ursa Major and Xbow. Yet, the first significant Defense Production Act (DPA) award was granted to the underperforming incumbent. This represented a missed opportunity to invest 10-20% of the contract in new entrants, which would have stimulated innovation and competition.
To ensure the growth and resilience of our national security infrastructure, it is paramount to incorporate and nurture emerging suppliers. This strategy fosters a more diverse and adaptable industrial base, better equipped to face the evolving challenges of the 21st century. (3)
OODA Almanac 2023 – Jagged Transitions
The Disintermediation and/or Self-cannibalization of the Defense Industrial Base
The Current Debate on ‘Forging the Defense Industrial Base for the Digital Age’
