6 avril 2021 | International, Technologies propres, Méga données et intelligence artificielle, Fabrication avancée 4.0, Systèmes autonomes (Drones / E-VTOL), Conception et essais virtuels, Fabrication additive

Commercial Interest Grows in Defense Innovation Unit

The Defense Innovation Unit received nearly 1,000 proposals in response to its solicitations last year, another sign that the Pentagon's outreach to commercial industry is bearing fruit.

DIU was launched in 2015 by then-Secretary of Defense Ash Carter to bridge the gap between the military and the nation's tech hubs. It is headquartered in Mountain View, California, in Silicon Valley, with additional outposts in Austin, Texas, Boston and the Pentagon.

“DIU's mission to strengthen U.S. national security by increasing the military's adoption of commercial technology and to grow the national security innovation base is critical not only to maintaining a strategic advantage over our adversaries but also to the strength of our economy,” the organization said in its recently released 2020 annual report.

Over the past five years, the unit has leveraged more than $11 billion in private investment, the document noted.

“The startups, established companies, venture capital firms, investors and traditional defense contractors that DIU works with to deliver the best commercial technology to the Department of Defense are ... fundamental sources of dual-use technologies,” it said.

In 2020, DIU initiated 23 new projects, a 35 percent year-over-year increase. It received a total of 944 commercial proposals and increased the average number of proposals per solicitation by 52 percent compared with 2019.

Fifty-six other transaction agreements for prototyping were awarded to companies, the majority of which were small businesses or nontraditional firms. A total of $108 million in prototype funding was obligated. Between June 2016 and December 2020, DIU facilitated more than $640 million in prototype funding, according to the report.

Notably, the unit in 2020 facilitated the transition of 11 successful commercial prototypes to its Defense Department partners for large-volume procurement, an increase of 22 percent over the previous year.

About 43 percent of DIU's projects to date have yielded at least one prototype that has transitioned to production, according to the report. Fifty-one ongoing projects have prototypes that will be eligible for transition to production if successfully completed.

“What began in 2015 as an experiment to lead Department of Defense outreach to commercial innovators has become a gateway for business between leading-edge companies and the U.S. military,” the report said.

DIU's main technology focus areas have been artificial intelligence, autonomy, cyber, human systems and space. In October, it added advanced energy and materials to its portfolio.

“We look forward to providing even more high-impact solutions that will bolster our military's strategic, operational and tactical advantage,” the organization said.

https://www.nationaldefensemagazine.org/articles/2021/4/5/commercial-interest-grows-in-defense-innovation-unit

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    By: Jill Aitoro SIMI VALLEY, Calif. — Private investors are not yet lining up to back defense startups, but they are paying close attention. Two factors have created an opening that could lure venture capitalists to defense investments: first, a few select venture-backed technology startups are gaining traction; and second, there's been a strategic shift in approach to weapons development from the U.S. Department of Defense, focusing more on information warfare and, as such, software. In the words of Mike Madsen, director of strategic engagement at the Pentagon's commercial tech hub, Defense Innovation Unit: "We're at a significant inflection point right now that will be visible through the lens of history.” Nonetheless, for the tech startups, it's been slow going, as discussed during a Defense News roundtable in California. 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They're certainly leaning in, in terms of their thinking about defense technology — believing that despite the history, there might be a way to find an opening to create companies that can become economically sustainable and make substantial mission impact.” Shield AI has raised $50 million in venture funding since 2015, with more rounds expected. Indeed, a few key Silicon Valley investors have emerged as the exceptions to the rule, putting dollars toward defense startups. In addition to Andreessen Horowitz, which counts both Shield AI and defense tech darling Anduril in its portfolio, there's General Catalyst, which also invested in Anduril, as well as AI startup Vannevar Labs. And then of course there's Founders Fund. Led by famed Silicon investors Peter Thiel, Ken Howery and Brian Singerman, among others, the venture firm was an early investor in Anduril, as well as mobile mesh networking platform goTenna. Founders Fund placed big bets on Palantir Technologies and SpaceX in the early days, which paid off in a big way. Some of the early successes of these startups have “done an excellent job of making investors greedy,” said Katherine Boyle, an investor with General Catalyst. “There's a growing group who are interested in this sector right now, and they've looked at the success of these companies and [are] saying: ‘OK, let's learn about it.' ” Take Anduril: The defense tech startup — co-founded by Oculus founder Palmer Luckey and Founders Fund partner Trae Stephens — has raised more than $200 million and hit so-called unicorn status in 2019, reaching a valuation of more than $1 billion. As the successes piled up, so did the venture capital funding. According to Fortune magazine, those investors included Founders Fund, 8VC, General Catalyst, XYZ Ventures, Spark Capital, Rise of the Rest, Andreessen Horowitz, and SV Angel. “I started my career at Allen & Company investment banking. Herbert Allen, who's in his 80s, always said: ‘Hey, you should run into an industry where people are running away,' ” said John Tenet, a partner with 8VC as well as a co-founder and vice chairman of defense startup Epirus. “There's so much innovation occurring, where the government can be the best and biggest customer. And there are people who really want to solve hard problems. It's just figuring out where the synergies lie, what the ‘one plus one equals three' scenario will be.” Also attracting the attention of Silicon Valley investors is the growing emphasis by the Pentagon not only on systems over platforms, but software over hardware. Boyle described the shift as the “macro tailwind” that often drives innovation in a sector. Similar revolutions happened in industrials and automotive markets — both of which are also massive, global and slow-moving. 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And that places a lot of pressure on the companies that are, in a sense, the proof of concept for a new portfolio segment. “My fear is that if this generation of companies doesn't figure [it] out, if they don't knock down the doors and if there aren't a few successes, we're going to have 20, 30 years of just no investor looking around the table and saying we need to work for the Department of Defense,” Boyle said. “If there aren't some success stories coming out of this generation of companies, it's going to be very hard to look our partners in the eye and say: ‘We should keep investing in defense because look at how well things have turned out.'” https://www.defensenews.com/smr/cultural-clash/2020/01/30/as-tech-startups-catch-dods-eye-big-investors-are-watching/

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