Viola Ventures’ Post

After extensive talks with government and industry leaders, it's evident that Defense Tech is undergoing a revolution. In a new report by our Principal Alex Shmulovich, we dive into different ways in which we believe resilience tech startups can win categories and build large companies. If you would like to discuss this topic further with our team, please don't hesitate to reach out!

Make sure to check out Alex Shmulovichs recent 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 𝐓𝐞𝐜𝐡 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐓𝐡𝐞𝐬𝐢𝐬. A few take always- While much has been written about this space - often raising concerns about hype – we’re witnessing major shifts in the space: 💼 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭-𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧: Faster innovation adoption by government agencies working directly with Startups. 💵 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐀𝐩𝐩𝐞𝐭𝐢𝐭𝐞: A shrinking “valley of stagnation” leveraging newfound appetite for growth capital in the space. 🚀 𝐍𝐞𝐰 𝐀𝐜𝐪𝐮𝐢𝐫𝐞𝐫𝐬: Defense tech unicorns driving a potentially attractive exit strategy. We at Viola Ventures highlight how startups can win in new markets (beyond the U.S.) and attractive categories. We’re here to back bold founders reshaping this space. If you’re building, let’s connect! #DefenseTech #Startups #Innovation #IsraelTech #Resilience

Katja Bego, Senior Research Fellow, International Security Programme "Earlier this month Amazon, Anthropic and Palantir launched a partnership to develop AI solutions for the US defence and intelligence communities. And in September, the storied tech accelerator Y-combinator backed a weapons company for the first time in its history. Such developments reflect a wider trend: venture capital investment in defence tech reached $100 billion between 2021 and 2023, nearly 40 per cent higher than the previous seven years combined. The Pentagon signed contracts worth an estimated $53 billion with big tech companies between 2018 and 2022. This collaboration is only likely to accelerate under the second administration of President Donald Trump. Tech entrepreneurs such as Peter Thiel and Anduril’s Palmer Luckey, in the vanguard of this defence tech renaissance, were among the vanishingly few tech figures to support Trump in 2016. In 2024, more Silicon Valley leaders endorsed the former president – especially those with ties to the Pentagon – and they are now likely to want to seize on their electoral gamble."

💰 𝗔 𝗡𝗲𝘄 𝗘𝗿𝗮 𝗳𝗼𝗿 𝗗𝗲𝗳𝗲𝗻𝘀𝗲 𝗧𝗲𝗰𝗵 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 Defense technology is transforming global security, driven by advancements in AI, autonomous systems, and cybersecurity. These innovations are not only reshaping military and national security but also finding applications in commercial sectors like manufacturing and energy. Chaos Industries recently raised an impressive $𝟭𝟰𝟱𝗠 𝗦𝗲𝗿𝗶𝗲𝘀 𝗕, doubling its Series A from just a year ago. This milestone reflects a broader trend: 𝗱𝗲𝗳𝗲𝗻𝘀𝗲 𝘁𝗲𝗰𝗵 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝘀 𝗮𝘁 𝗮𝗻 𝗮𝗹𝗹-𝘁𝗶𝗺𝗲 𝗵𝗶𝗴𝗵, as investors recognize its critical role in addressing modern threats and global challenges. 𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: 📈 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗦𝘂𝗿𝗴𝗲: By mid-November, startups in military, national security, and law enforcement sectors have raised $𝟯𝗕 𝗮𝗰𝗿𝗼𝘀𝘀 𝟴𝟱 𝗿𝗼𝘂𝗻𝗱𝘀 — surpassing 2022's $2.6B (Crunchbase). 🌍 𝗚𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗗𝗿𝗶𝘃𝗲𝗿𝘀: Global conflicts, reliance on advanced tech, and an anticipated rise in defense budgets are fueling growth. 🏗 𝗧𝗲𝗰𝗵 𝗮𝘁 𝘁𝗵𝗲 𝗖𝗼𝗿𝗲: Companies like 𝗔𝗻𝗱𝘂𝗿𝗶𝗹 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗲𝘀 and 𝗛𝗲𝗹𝘀𝗶𝗻𝗴 lead innovations in AI, autonomous systems, and cybersecurity. This surge reflects a shift in venture capital attitudes. Firms like 𝗔𝗻𝗱𝗿𝗲𝗲𝘀𝘀𝗲𝗻 𝗛𝗼𝗿𝗼𝘄𝗶𝘁𝘇, 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 𝗙𝘂𝗻𝗱, 𝗮𝗻𝗱 𝗦𝗮𝗻𝗱𝘀 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 are actively investing, recognizing that "𝗱𝗲𝗳𝗲𝗻𝘀𝗲 𝘁𝗲𝗰𝗵" 𝗳𝗿𝗲𝗾𝘂𝗲𝗻𝘁𝗹𝘆 𝗼𝘃𝗲𝗿𝗹𝗮𝗽𝘀 𝘄𝗶𝘁𝗵 𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 in energy, manufacturing, and more. As technology shapes the future of global security, the defense sector transcends traditional boundaries, fostering 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗴𝗹𝗼𝗯𝗮𝗹 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀. What are your thoughts on the intersection of venture capital and defense technology? Let’s discuss! #DefenseTech #Innovation #AI #Cybersecurity #StartupEcosystem #Funding #GlobalSecurity #AutonomousSystems #TechnologyTrends #VentureCapital #FutureOfWork #NationalSecurity #InvestmentOpportunities #YajurKnowledgeSolutions #YajurInsights 

🚀 Ukraine’s defense tech sector is skyrocketing, and the world is taking notice. 🚀 If you're not already investing in Ukraine's defense innovations, you're missing out on a historic opportunity. Since the onset of the war, Ukraine has rapidly evolved into a global defense tech powerhouse—with over 1,100 manufacturers and 2,500 cutting-edge developments, all battle-tested in real-world conditions. 💡 Why invest? Ukraine’s defense tech industry is not just catching up—it’s leading the charge in critical areas of innovation like AI, cybersecurity, and next-gen battlefield technology. We’ve created a fertile ground for international collaboration, backed by a favorable tax regime and future direct partnerships with NATO and global tech players. 🔥 Opportunities for Investors Diia.City United is at the heart of this thriving ecosystem, facilitating connections between global investors and Ukraine’s brightest tech talent. Whether it’s co-developing new technologies, forming joint ventures, or navigating regulatory frameworks, we are unlocking unparalleled potential for global security solutions. 🔗 Curious to learn more? Read my article for Business Ukraine Magazine. Click the link to dive into the full story and see why NOW is the time to invest in Ukraine’s defense tech sector. The future of global security is being shaped here—be a part of it. Read more 👉 https://lnkd.in/efHXnh-n and approach us at Diia.City United or our partners at Ministry of Digital Transformation of Ukraine and BRAVE1 Thank you Peter Dickinson for your invitation to contribute. Thank you Diia.City United members and Dmitry Dubrovskyi and our partners Alex Bornyakov, @MITS , Deborah Fairlamb, D3 Venture Capital Firm and many others

The future of tech policy is the democratization of innovation 💡 Watch this highlight from #theCUBENYSEWired as OpenPolicy’s Dr. Amit Elazari, Dr. J.S.D discusses how AI is transforming cybersecurity, semiconductors and climate change efforts, and democratizing everything from data to policy conversations. “Our approach is to enable the best companies in the world, well-equipped organizations to be immersed and capture this policy conversation,” she said. “And what it means is it's not just a consultancy.” This coalition model is breaking down barriers, enabling leading companies to shape the conversation, not just consult. AI is tracking proposed policies, connecting them to future strategies and empowering smaller players to have a seat at the table. ⬆️ 📃Find out more: https://lnkd.in/gD5FgJk5 #CyberPolicy #AIRegulation #Startups #GovernmentAffairs #Innovation John Furrier Brian J. Baumann #ClimateWeek #TechPolicy

“Earlier this month Amazon, Anthropic and Palantir launched a partnership to develop AI solutions for the US defence and intelligence communities. And in September, the storied tech accelerator Y-combinator backed a weapons company for the first time in its history. Such developments reflect a wider trend: venture capital investment in defence tech reached $100 billion between 2021 and 2023, nearly 40 per cent higher than the previous seven years combined. The Pentagon signed contracts worth an estimated $53 billion with big tech companies between 2018 and 2022.” https://lnkd.in/ermbWS_m

Summary: The article discusses Palantir's role in the growing defense tech startup sector and its efforts to become a driving force in the industry. The company's CTO, Shyam Sankar, is determined to help Palantir create a defense tech ecosystem and maximize its impact beyond its government contracts. Key takeaways: Sankar has initiated the First Breakfast program to provide guidance and tools to defense tech startups, aiming to secure a head start in the industry and identify potential "next Palantirs." Palantir has spawned a whole ecosystem in its wake, as evidenced by the success of former employees who have gone on to start their own successful defense tech companies. Sankar is driven by an existential fear of America's war-readiness and believes that more innovative and adaptable solutions are needed to ensure national security in the future. Counter arguments: Some may argue that Palantir's efforts to support and influence the defense tech industry could raise concerns about its potential for monopolizing the market. Critics may point out that Palantir's controversial partnerships with government agencies, especially ICE, raise ethical concerns and contradict its stated mission to protect Western values.

U.S. tech startups are key targets for state actors looking to steal technology, competitors seeking commercial advantage, and criminals trying to exploit weak security. NCSC’s Secure Innovation booklet can help companies build security from the start. https://lnkd.in/eZWf7C_H

Operations role in Ukrainian miltech startups is close to gaming on hardcore. Managing supply chains feels like playing Factorio during an earthquake. Production lines constantly break from power outages, border issues, missile strikes, or suppliers suddenly going dark. You learn to build redundancy into everything, treating single points of failure as boss-level threats. The talent pipeline operates on speedrun logic. You're racing to train engineers and technicians faster than the traditional years-long cycle, while attempting to maintain quality. Your HR is a mix of a university dean and special forces recruiter. Documentation becomes a roguelike adventure where requirements shift mid-development. Corporate structure is a simple game of 3D-chess. Each entity must be transparent enough for Western compliance, opaque enough for operational security, robust enough for wartime contingencies. Team cohesion operates on MMO raid mechanics but with permanent consequences. Each member's psychological status affects the whole group's effectiveness. You balance individual sustainability against collective capability. Your compliance and banking is a game of minesweeper, but you are already covered by all possible red flags. And yes, the mines are still there. The funding landscape is a high-stakes poker game. Venture capital meets defense procurement meets humanitarian aid. You balance immediate operational needs against long-term sustainability while tracking multiple currencies and jurisdictions. Communication adds a stealth game layer to every interaction. Basic business information becomes operational security. There is a chance of failure allowed. Measured in lives.