Five years ago, Google backed away from a Pentagon government contract due to thousands of employees protesting that its tech might be used for lethal drone targeting. However, today, Silicon Valley has far fewer qualms about developing technology for the U.S. Department of Defense.
A Growing Number of Companies Interested in National Security
Four investors – Trae Stephens of Founders Fund, Bilal Zuberi of Lux Capital, Raj Shah of Shield Capital, and longtime In-Q-Tel president Steve Bowsher – speaking at a startup event for military veterans today in San Francisco, said that they have observed a significant shift in attitude towards developing technology for the U.S. Department of Defense.
According to Shah, "The number of companies, founders, and entrepreneurs interested in national security broadly – I’ve never seen it at this level." Bowsher argued that the "reluctance of Silicon Valley to work with the [Defense Department] and intel community" was always "overblown," adding that across his 16 years with In-Q-Tel, which is the CIA’s venture fund, his team has met with roughly 1,000 companies each year and just "five to ten have turned us down, saying they weren’t interested in working with the customers we represent."
Mission Creep: A Growing Concern
When discussing mission creep – how a startup that begins working with the government can ensure it doesn’t wind up spending the bulk of its time catering to it, owing to new requests for this and that – Trae Stephens noted that "this kind of gradual shift in objectives is exactly what makes it hard to [cater to commercial customers and the government] at an early stage."
He added that a "lot of the programs that [enable founders to] do early business with the Department of Defense requires some, like, DoD-ization of your product for that particular application." This can be challenging for startups that are trying to balance their goals with those of the government.
The Risks of Working with the Government
Bilal Zuberi from Lux Capital noted that "you can run into problems" when working with the government. He cited an example where a company they had invested in had issues with its technology being used for military purposes, and how it ultimately led to a lawsuit.
Zuberi emphasized that startups need to be aware of the risks involved in working with the government and take necessary precautions to protect their interests.
The Growing Importance of National Security Technology
The discussion on national security technology is becoming increasingly important. The U.S. Department of Defense has been investing heavily in AI, cybersecurity, and other emerging technologies that can help enhance its capabilities.
As the industry continues to evolve, it’s essential for startups and investors to be aware of the opportunities and challenges presented by national security technology. By doing so, they can make informed decisions about their investments and ensure that their products and services meet the needs of both the government and commercial markets.
Conclusion
The shift towards national security in Silicon Valley is a significant development that has far-reaching implications for startups, investors, and the broader industry. As more companies begin to develop technology for the U.S. Department of Defense, it’s crucial to be aware of the risks and opportunities involved.
By understanding the complexities of working with the government and the growing importance of national security technology, startups can position themselves for success in this rapidly evolving landscape.
Related Topics
- Anduril: A defense startup that has raised significant funding from top investors.
- Bilal Zuberi: Co-founder and managing partner at Lux Capital.
- Founders Fund: A venture capital firm that invests in early-stage startups.
- In-Q-Tel: The CIA’s venture arm, which invests in emerging technologies.
- Lux Capital: A venture capital firm that invests in early-stage startups.
- Shield Capital: A venture capital firm that invests in cybersecurity and national security startups.
- SpaceX: An aerospace company founded by Elon Musk.
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