In a couple of my recent conversations with VCs, one topic keeps coming up: defense tech. And while the war in Ukraine sparked interest for some VCs in the sector, which broadly focuses on building technologies used for national defense, other long-time investors say there are a few big tailwinds for investing now.
When Russia invaded Ukraine in early 2022, “I think that woke people up,” Josh Wolfe, cofounder and managing partner at Lux Capital, told me last month, adding that seeing “commercial off-the-shelf technologies being used to defend the democratic nation was inspiring for many.” Lux has been a big investor in defense technologies across land, sea, air, and space, Wolfe notes, with investments in startups like military tech company Anduril and autonomous precision component factories builder Hadrian. It’s also a key investment area for the firm’s new $1.15 billion fund.
