The Silicon Valley Defense Group "NatSec 100" – OODA Loop

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Archive, Disruptive Technology, OODA Original / July 12, 2023 by Daniel Pereira
The SVDG recently introduced the inaugural version of the NatSec100, a “newly developed, annual ranked list of the top venture-funded defense and dual-use startups. It was developed to offer a data-driven snapshot of the evolving techno-security ecosystem” – including policy recommendations.  

About the Silicon Valley Defense Group [SVDG]

In 2015, Senator John McCain sought help from leaders in tech and finance to improve relations between the innovation hub of Silicon Valley and the technology demands of the defense market. The result: The Silicon Valley Defense Group.  After meeting with Senator McCain, [the founders of the SVDG] continued to engage policymakers to help bridge the gap between government and Silicon Valley. Before officially becoming a 501C3 in 2020, SVDG operated for several years as an informal working group, uniting the people, capital, and ideas necessary to ensure allied democracies retain a durable techno-security advantage.  SVDG aims to develop cross-cutting relationships between Silicon Valley startups, investors, and the defense ecosystem. To achieve this goal, SVDG seeks to engage and motivate dual-use innovators and venture capitalists to support the broad mandate for defense innovation. (1)

The Inaugural SVDG National Security 100 (NatSec100) 

The SVDG recently introduced the inaugural version of the NatSec100, a “newly developed, annual ranked list of the top venture-funded defense and dual-use startups. It was developed to offer a data-driven snapshot of the evolving techno-security ecosystem.

The list is by no means a perfect indicator of the future success or failure of the companies it comprises; rather, it is intended to drive conversation around the emerging tech ecosystem in national security. While the DOD has long resisted “picking winners,” the NatSec100 ranks companies based on which are the comparative front-runners in the defense and national security space each year.

SVDG will be sharing a series of follow-up efforts including webinars, case studies, and roundtables to facilitate discussions and knowledge sharing. Additionally, deeper dives into the policy recommendations will be undertaken to critically assess and refine strategies for more effective implementation. (2)

OODA Loop Sponsor

Source:  https://www.siliconvalleydefense.org/natsec100-2023/#list

Methodology

Rank
Name
Company Description
Total funding raised (millions)
Headquarters
CEO
Year Founded
1
SpaceX
Develops spacecraft to make life multi-planetary; develops space launch vehicles to increase accessibility of materials
$8,999.86
Hawthorne, CA
Elon Musk
2002
2
Anduril
Develops defensive AI-based software and hardware for national security
$2,315.10
Costa Mesa, CA
Brian Schimpf
2017
3
Databricks
Data analytics platform to simplify data
$3,497.36
San Francisco, CA
Ali Ghodsi
2013
4
Sierra Space
Commercial space transportation technology to facilitate life in space
$1,438.22
Louisville, CO
Tom Vice
2021
5
Chainalysis
Cryptocurrency investigation and compliance software
$536.72
New York City, NY
Jonathan Levin
2014
6
Axiom Space
Provider of human-rated space infrastructure and services
$274.20
Houston, TX
Michael Suffredini
2016
7
Relativity
Develops 3D printed rockets for launching payloads to orbit
$1,334.54
Long Beach, CA
Tim Ellis
2015
8
Grafana Labs
Developer of a performance monitoring platform
$569.23
New York, NY
Raj Dutt
2014
9
Shield AI
AI based drone technology
$575.00
San Diego, CA
Ryan Tseng
2015
10
Dataiku
Centralized data platform supporting data analytics and enterprise AI development
$851.80
New York, NY
Florian Douetteau
2013
11
Skydio
Developer of autonomous drones for commercial and government use
$644.68
Redwood City, CA
Adam Bry
2014
12
Scale AI
Data-centric platform accelerates AI training and development
$602.86
San Francisco, CA
Alexandr Wang
2016
13
ICON
Construction-scale additive manufacturing
$451.00
Austin, TX
Jason Ballard
2017
14
Lyten
Lithium-sulfur battery technology
$210.00
San Jose, CA
Dan Cook
2015
15
SandboxAQ
Practical AI quantum software
$500.00
New York, NY
Jack Hidary
2022
16
Dragos
Infrastructure cybersecurity software
$358.20
Hanover, MD
Robert M. Lee
2016
17
Slingshot Aerospace
Space simulation and analytics platform
$81.82
El Segundo, CA
Melanie Stricklan
2017
18
Venus Aerospace
Developing hypersonic aircraft
$48.28
Houston, TX
Sassie Duggleby
2020
19
DataRobot
Enterprise AI platform to automate data
$1,048.21
Boston, MA
Debanjan Saha
2012
20
Ursa Major Technologies
Developer of turnkey propulsion technologies for engines
$286.10
Berthoud, CO
Joe Laurienti
2015
21
Rubrik
Data automation for hybrid clouds
$1,056.73
Palo Alto, CA
Bipul Sinha
2014
22
Versa Networks
Integrated SDN platform to integrate cloud, networking, and security services
$330.25
Santa Clara, CA
Kelly Ahuja
2009
23
ThoughtSpot
Enterprise analytics platform centralizes and accelerates data
$677.45
Mountain View, CA
Sudheesh Nair
2012
24
PsiQuantum
First utility-scale quantum computer
$665.00
Palo Alto, CA
Jeremy O’Brien
2016
25
Capella Space
Satellite radar imagery technology
$283.99
San Francisco, CA
Payam Banazadeh
2016
26
Stoke Space Technologies
Developer of reusable rockets
$74.54
Kent, WA
Andy Lapsa
2019
27
SambaNova Systems
Hardware for accelerated analytics and AI
$1,136.60
Palo Alto, CA
Rodrigo Liang
2017
28
Applied Intuition
Advanced simulation infrastructure software for autonomous vehicles
$351.50
Mountain View, CA
Qasar Younis
2017
29
Epirus
HPM technology software to counter UAS
$290.59
Torrance, CA
Kenneth Bedingfield
2018
30
Impulse Space
Orbital maneuvering vehicles for economical delivery
$30.00
El Segundo, CA
Thomas Mueller
2021
31
Blue Origin
Space technologies for sustainable expansion
$500.00
Kent, WA
Bob Smith
2000
32
CloudBees
Automated cloud platform for software delivery
$454.55
San Jose, CA
Anuj Kapur
2010
33
Cerebras Systems
AI-accelerating computing chips
$723.00
Sunnyvale, CA
Andrew Feldman
2015
34
Astranis
Satellite internet company for regional connectivity and broadcasting
$393.92
San Francisco, CA
John Gedmark
2015
35
ABL Space Systems
Low-cost vehicles to launch small satellites
$419.35
El Segundo, CA
Harry O’Hanley
2017
36
Infleqtion
Develops software-configured, quantum-enabled products
$184.50
Louisville, CO
Scott Faris
2007
37
VAST Data
Data platform designed to accelerate enterprises
$263.00
New York, NY
Renen Hallak
2016
38
EOI Space
Low-flying satellites to collect ultra-high-resolution imagery
$11.07
Louisville, CO
Christopher Thein
2017
39
Muon Space
Develops climate-focused satellite constellation technology
$35.00
Mountain View, CA
Jonny Dyer
2021
40
Opaque Systems
First confidential AI platform
$22.00
San Francisco, CA
Rishabh Poddar
2020
41
Whoop
Wearable performance optimization device
$407.40
Boston, MA
Will Ahmed
2011
42
Saildrone
Autonomous marine surface vehicles
$186.20
Alameda, CA
Richard Jenkins
2012
43
Loft Orbital
Satellite platform to assist the launch and operations of satellites
$156.16
San Francisco, CA
Pierre-Damien Vaujour
2017
44
RED 6
Augmented reality (AR) for military training applications
$110.90
Orlando, FL
DANIEL ROBINSON
2018
45
SiMa.ai
Software-centric platform accelerates high-performance machine learning inference
$187.80
San Jose, CA
Krishna Rangasayee
2018
46
Formlabs
Printing platform designed to print parts with complex geometries
$253.13
Somerville, MA
Maxim Lobovsky
2011
47
BigID
Data-driven protection and privacy compliance platform
$196.26
New York, NY
Dimitri Sirota
2016
48
Lambda
Software-enhanced compute systems and GPU cloud services
$68.21
San Jose, CA
Stephen Balaban
2012
49
Vannevar Labs
Machine learning products for critical national security problems
$91.10
Palo Alto, CA
Brett Granberg
2019
50
Fictiv
On-demand digital manufacturing ecosystem
$195.62
San Francisco, CA
Dave Evans
2013
51

Ayar Labs
Electronic-photonic chipset for computers
$195.10
Emeryville, CA
Alex Wright-Gladstein
2015
52
Federated Wireless
CBRS shared spectrum technology for wireless industry
$206.00
Arlington, VA
Iyad Tarazi
2012
53
Dedrone
Counter-drone security technology platform
$133.01
Sterling, VA
Aaditya Devarakonda
2014
54
RRAI
Develops autonomous and semi-autonomous transportation vehicles
$228.00
Clarksburg, MD
Alberto Lacaze
2002
55
Merlin Labs
Autonomous flight technology designed for fixed-wing aircraft
$146.00
Boston, MA
Matt George
2018
56
Hermeus
Developer of a hypersonic aircraft
$118.90
Atlanta, GA
AJ Piplica
2018
57
SparkCognition
AI to analyze increasingly complex data stores
$340.49
Austin, TX
Amir Husain
2013
58
Firefly Aerospace
Develops launch vehicles for commercial launches to orbit
$30.20
Cedar Park, TX
Bill Weber
2017
59
Kymeta
Low-power satellite antenna for mobile satellite-cellular connectivity
$524.87
McLean, VA
S. Douglas Hutcheson
2012
60
UVeye
Vehicle inspection systems to detect threats or modifications of vehicles
$201.56
Teaneck, NJ
Amir Hever
2016
61
Airspace Technologies
Technology-enabled logistic platform to expedite deliveries
$138.50
Carlsbad, CA
Nicholas Bulcao
2016
62
Boom Supersonic
Manufacturer of sustainable supersonic aircraft
$269.13
Dove Valley, CO
Blake Scholl
2014
63
Sepio
Risk management platform
$37.00
Rockville, MD
Yossi Appleboum
2016
64
Nozomi Networks
Online cybersecurity platform
$174.05
San Francisco, CA
Edgard Capdevielle
2013
65
Gecko Robotics
Robots for comprehensive asset inspections
$120.45
Pittsburgh, PA
Jake Loosararian
2013
66
6K
Microwave-based plasma technology to produce nanomaterials
$214.10
North Andover, MA
Aaron Bent
2014
67
Interos
Logistics assurance platform to manage supply-chain risk
$258.62
Arlington, VA
Jennifer Bisceglie
2005
68
Albedo
Constellation of satellites that capture both visible and thermal imagery simultaneously
$60.22
Broomfield, CO
Topher Haddad
2020
69
Brinc
2-way communication drones and aerospace technology systems
$82.20
Seattle, WA
Blake Resnick
2017
70
Swift Navigation
GPS technology for automated navigation for autonomous applications
$200.18
San Francisco, CA
Tim Harris
2012
71
Rebellion Defense
Mission-focused, defense and security AI products
$223.80
Washington, DC
Barry Sowerwine
2019
72
ATLAS Space Operations
Satellite communications optimization control software
$34.80
Traverse City, MI
Sean McDaniel
2015
73
Liquid Instruments
Developer of modern test and measurement devices based on a software-configurable hardware platform
$58.96
San Diego, CA
Daniel Shaddock
2014
74
Orbit Fab
Space refueling technology designed to offer remote monitoring services
$29.15
Lafayette, CO
Daniel Faber
2018
75
Firehawk Aerospace
Hybrid rocket engines with 3D-printed fuel
$26.75
Addison, TX
Will Edwards
2019
76
Morpheus Space
Sustainable spacecraft propulsion systems
$28.07
El Segundo, CA
Daniel Bock
2018
77
X-Bow
Affordable rocket propellant for orbital access
$29.20
Huntsville, AL
Jason Hundley
2016
78
Mirantis
Technology platform for public open cloud infrastructure
$254.07
Campbell, CA
Adrian Ionel
1999
79
Rescale
Cloud-based software and hardware infrastructure platform for scientific and engineering simulations
$157.40
San Francisco, CA
Joris Poort
2011
80
Voyager Space
Aviation and aerospace technology for space exploration
$177.80
Denver, CO
Dylan Taylor
2019
81
HawkEye 360
space-based radio frequency mapping and analytics system for geospatial data analytics
$305.00
Herndon, VA
John Serafini
2015
82
Automation Anywhere
Workforce-oriented AI robotic process automation software
$1,172.97
San Jose, CA
Mihir Shukla
2003
83
Truera
Model Intelligence platform for business impact
$42.28
Redwood City, CA
William Uppington
2019
84
Second Front Systems
Accelerating commercial software development, testing, and deployment into national security networks
$44.23
Wilmington, DE
Peter R Dixon
2014
85
Phantom Space
Democratizing space transportation technology
$26.66
Tucson, AZ
Jim Cantrell
2019
86
Xwing
Autonomous flight technology for various aircraft
$58.00
San Francisco, CA
Marc Piette
2016
87
LeoLabs
Secure commercial operations in low Earth orbit
$82.00
Menlo Park, CA
Daniel Ceperley
2016
88
SkySafe
Drone defense technology for airspace security
$45.00
San Diego, CA
Grant Jordan
2015
89
Spaceflight Industries
Aerospace launch mission services
$265.75
Bellevue, WA
Tiphaine Louradour
2009
90
Snorkel
AI tool to extract information from text documents
$138.25
Redwood City, CA
Alexander Ratner
2015
91
Hypori
Virtual mobile infrastructure to eliminate security risks
$30.50
Reston, VA
Jared Shepard
2021
92
Stellar Cyber
Automated security operations platform
$59.80
San Jose, CA
Changming Liu
2015
93
Shift5
Cybersecurity platform to defend operational technology platforms
$105.50
Arlington, VA
Josh Lospinoso
2019
94
Primer
AI used to automate the analysis of massive datasets
$237.00
San Francisco, CA
Sean Moriarty
2014
95
SpiderOak
Collaboration tool, online backup and file hosting service
$36.90
Lenexa, KS
Dave Pearah
2007
96
Xplore
Commercial space services fueled by a multi-sensor platform to store, transmit data, achieve data fusion and on orbit processing
$25.20
Redmond, WA
Jeff Rich
2018
97
CesiumAstro
Software-defined communication payloads for airborne and in-orbit platforms
$88.20
Broomfield, CO
Shey Sabripour
2017
98
Eclypsium
Device security platform unguarded firmware and hardware defense
$63.04
Portland, OR
Yuriy Bulygin
2017
99
Varda Space Industries
Platform for in-space manufacturing
$42.00
El Segundo, CA
Will Bruey
2020
100
Elroy Air
Autonomous aircraft systems and software to expedite shipping services
$56.00
San Francisco, CA
David Merrill
2016
Silicon Valley Defense Group (SVDG) collaborated with Franklin Templeton and Balyasny Asset Management to compile the NatSec100 list, taking into account the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E))’s 14 Critical Technology Areas and private conversations with senior leaders from the DOD and intelligence community. Eligible companies are all engaged in the Department of Defense (DOD) critical technology areas, and the rankings reflect weighted, quantitative factors that allowed us to analyze companies’ size, growth, and momentum. Specifically, we analyzed headcount growth, total capital raised, and fundraising momentum, to assign a weighted score to each company. While these metrics are by no means perfect indicators of success for these companies, they demonstrate momentum in the world of venture-backed growth. All data gathered for the NatSec100 2023 is through the end of April 2023. (3)

What Next?

SVDG Policy Recommendations

Better Reporting Metrics
It’s important to track the success of defense and dual-use startups in the national security market to judge to health of the national security innovation ecosystem. These metrics should monitor private funding and company growth, as well as government contracts and procurement of emerging technologies. It should track beneficiaries of the Defense Innovation Unit’s (DIU) Other Transaction Authorities (OTAs), the recipients of AP-FIT grants, the Title III/Defense Production Act winners, and those that secure AFWERX STRATFI/TACFI awards.  These will provide a clearer picture of the health of the national security innovation ecosystem and the effectiveness of DOD/IC efforts to support innovative challengers to the established defense industrial base.
Private Capital Partnership Consideration
Another step towards enhancing our techno-security landscape is to consolidate DOD efforts in connecting with private capital. These efforts, currently distributed across various departments like the Office of Strategic Capital, DIU, and Service-led initiatives, should be streamlined and consolidated. This centralization would improve efficiency, coordination, and accountability, and it could further be enhanced by linking with Intelligence Community efforts, like In-Q-Tel.
Nurturing New and Emerging Suppliers
If the DOD is truly committed to cultivating an emerging industrial base to supplement the established industrial base, it is essential to act decisively. This means seeking out and insisting on the inclusion of new suppliers, with a specific focus on those without a prior record of performance. It’s an approach that promotes innovation and drives competitiveness.
The Space Force’s approach with the new National Security Space Launch (NSSL) serves as a good model. Their Request for Proposals (RFP) expanded the supplier base, increasing the number of winners from two in the previous award to five in 2023. This not only broadened the playing field but also opened opportunities for 1-3 members of the NatSec100 to secure a contract, even without prior space exploration credentials.
 However, not all sectors are embracing this forward-thinking strategy. A case in point is the Over-the-Horizon (OTH) munitions sector. The Ukraine conflict has highlighted the urgent need for new solid munition suppliers, like Ursa Major and Xbow. Yet, the first significant Defense Production Act (DPA) award was granted to the underperforming incumbent. This represented a missed opportunity to invest 10-20% of the contract in new entrants, which would have stimulated innovation and competition.
 To ensure the growth and resilience of our national security infrastructure, it is paramount to incorporate and nurture emerging suppliers. This strategy fosters a more diverse and adaptable industrial base, better equipped to face the evolving challenges of the 21st century. (3)

OODA Almanac 2023 – Jagged Transitions

The Disintermediation and/or Self-cannibalization of the Defense Industrial Base

The Current Debate on ‘Forging the Defense Industrial Base for the Digital Age’

Daniel Pereira is research director at OODA. He is a foresight strategist, creative technologist, and an information communication technology (ICT) and digital media researcher with 20+ years of experience directing public/private partnerships and strategic innovation initiatives.

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