Defense And It Giants Are Pumping Money Into Startups. Call It ‘outsourced R&d.’

The defense industrial base is increasingly turning to venture capital to invest in cutting-edge technology such as artificial intelligence, quantum computing, machine learning, cyber, 3D manufacturing and robotics. This is due to wars abroad and rising tensions with China. Corporate venture capital investors have remained resilient through the lower funding cycles, with 634 CVC-led rounds totaling $22.4 billion in value in 2022. Brian MacCarthy, senior vice president of ventures and managing partner of Booz Allen Ventures, is an example of this trend.