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China warns of “confrontation and conflict” with U.S. Manufacturing in the U.S. is now growing faster than the world in historic first. Iran has discovered the world’s second largest Lithium deposit. Russia launches barrage of hypersonic missiles at Ukraine. U.S. Senators want to launch military into Mexico in response to drug-related kidnapping of 4 Americans, killing of 2.

• News Round Up
• Watch: Nothing. I was busy this week.
• Read: Nothing of interest to most people, and not much I can share anyway, this week.
• Listen: 20VC with Amjad Masad
• Think: Roll-ups in Defense
• Lighter Side

Weekly News Round Up

Military

• White House backs new bill that could ban TikTok (RT)
• Combative Chinese foreign minister warns of conflict with U.S. (DN)
• U.S. House Speaker to meet Taiwan President (AlJ)
• Russia launches at least 6x Kinzhal hypersonic missiles at Ukraine (RT)
• Russian fighter jets increasing presence near U.S. troops in Syria (S&S)
• Philippines launches strategy of publicizing Chinese actions (MT)
• U.S. Navy concerned about illegal Chinese fishing (USNI)
• Japan will upgrade its Type-3 SAMs to neutralize hypersonic threats (EA)
• U.S. postpones hypersonics missile test in Florida (FlT)
• U.S. Army Futures Command mulls shake-up of “Cross Functional Teams” (DN)
• U.S. Air Force remains concerned about a shortage of pilots (AFT)
• U.S. Army seeks authority to buy munitions over multiple years (DN)
• U.S. Air Force looks at creating swarm of Reaper UAVs (DO)
• U.S. Air Force wants fleet of 1,000 drone wingmen (DN)
• Machines are the constraint in producing more ammunition (DO)
• French Minister of Defense takes Rheinmettal to task for sluggishness (DN)
• Australia to buy up to 5x U.S. Virginia class submarines in AUKUS deal (RT)
• U.S. Army ready to replace Stinger anti-air missiles (BD)
• U.S. State Dept ok’s sales of E-2D Hawkeye aircraft to Japan in $1.4B deal (DN)
• U.S. Air Force airmen win Spark Tank contest using ground-penetrating radar and AR (ASF)
• Pentagon looks to ensure SpaceX remains committed to national security in event of a war (DO)
• U.S. to give tank-launched bridges to Ukraine (S&S)
• Romania wants M1 Abrams tanks (RT)
• Israeli company Elbit Systems to sell howitzers and rockets to Europe (DN)
• Shield AI and Boeing will collaborate on autonomy, AI for defense systems (BD)

Space

• JAXA issues destruct command to rocket after second stage failed to ignite (RT)
• Launch of first 3D printed rocket from Relativity Space postponed (RT)
• White House nears plan on regulatory authorities for New Space activities (BD)
• Chinese rocket that put spy satellites in space breaks up over Texas (USNI)
• U.S. Space Force chief outlines theory of “competitive endurance” to achieve and maintain space superiority (BD)
• U.S. Space Command plans new “Commercial Integration Office” (BD)
• U.S. Space Force to let commercial companies use its launch pads (C4ISR)
• Pentagon official says ETs could be probing the solar system (MT)
• Raytheon wins contract for seven more missile tracking satellites (ASF)
• Starfish Space raises $14M Series A to build orbital tugs (GW)
• Lonestar, a startup looking to build mission critical data services and communications on the Moon, raised a $5M seed round led by Scout Ventures (PRN)

Nuclear Power & Weapons

• U.S. energy company Vistra bids to buy Energy Harbor Corp for $3.43Bn (RT)
• U.S. nuclear bases to get security networking upgrade (C4ISR)
• Russian attacks cut power at Zaporizhzhia nuke plant (BBC)
• Vogtle Unit 3 in Georgia splits atoms, reaches initial criticality (PRN)
• Wyoming gives Kemmerer $3M for Natrium nuclear plant project (RCJ)
• Russia builds a giant laser to test its nukes (WI)
• France finds corrosion crack at Penly 1 reactor (RT)
• Germany willing to import French hydrogen from nuclear sources (EU)

Artificial Intelligence, Robotics, Energy, and other cool tech

• Iran claims to discover world’s second-largest lithium deposit (CNBC)
• Chip-maker TSMC will recruit 6k engineers this year (RT)
• US manufacturing growth is now outpacing the world in historic first (AX)
• Stability AI, the parent company of AI digital image tool Stable Diffusion, is seeking to raise funds at a ~$4B valuation (BBG)
• Cybersecurity startup Wiz raised a $300M Series D at a $10B valuation led by Lightspeed Venture Partners (FRB)
• Industrial Sun, a developer of solar projects for industrial clients, raised a $90M round led by EIG and Modern Energy (FN)
• Effect Photonics, a Dutch-based developer of integrated optical solutions, raised a $40M round led by Invest-NL and Innovation Industries (FN)
• Envisics, a startup building in-car holographic tech, raised a $50M+ Series C at a $500M valuation from by Hyundai Mobis, InMotion Ventures, and Stellantis (TC)
• Mythic, a startup building an analog processor for edge AI devices, raised a $13M round led by Atreides Management, DCVC, Lux Capital, and others (BW)
• Dutch quantum processor startup QuantWare raised a $6M seed round led by Forward.One (TC)
• Carbon nanomaterials startup DexMat raised a $3M seed round led by Shell Ventures (FN)

Drugs

• U.S. Senators want to send troops to fight Mexican cartels (WT)
• Pentagon counters that the military isn’t the right tool to deal with cartels (S&S)
• Mexican President AMLO warns against U.S. military “aggression” (WP)
• Cartel allegedly hands over members responsible for kidnapping 4 Americans, killing 2 (AP)
• Opioids most common cause of fatal poisoning in young children (ST)

20VC with Amjad Masad

Harry Stebbings is a fantastic podcast host and I really enjoyed his wide-ranging conversation with Amjad Masad today. Amjad is the founder and CEO of Replit, which helps developers code online.

Amjad had some really interesting insights including:

• Exceptionalism and finding it in great founders
• Screening out bad fits when recruiting
• The future role of AI in the world

Of course, I also found the discussion on banning TikTok to be really interesting as we struggle with malign actors and great power competition, while remaining true to our free-market ideals.

Listen to it here or wherever you get your pods.

Roll-ups in Defense

Eric Berger of Ars Technica published an article suggesting that United Launch Alliance (ULA) might be up for sale.

ULA is a joint venture between Lockheed Martin and Boeing and has been a major player in space launch.

After reading the Ars Technica article, a few others, and listening to Anthony Colangelo’s Main Engine Cutoff podcast about the sale, it got me thinking.

Why couldn’t a PE firm buy ULA, and then create a roll-up based around it? Buying a handful of companies across the the various space sub-sectors could create a fully-integrated end-to-end competitor in the space industry. Further diversification into defense and aerospace focused on emerging technologies could create a really interesting company, capable of competing with the “primes” with some unique technical defensibility.

If anyone has some contacts within the PE community that might be interested in an A&D roll-up, please let me know. I would think the most likely contenders would be: AE Industrial Partners, Carlyle, Veritas, Warbur Pincus, or maybe a couple of others.

Lighter Side

It’ll be easier than invading Iran for Lithium or Mexico for revenge:

I love you, Europe:

Keep building!

Andrew