We’re Doubling Down on the Defense Industry. Here's why you should too.

TechNexus isn't a defense investor per se — but the firm is doubling down on the defense industry because the opportunity is too large to ignore. This analysis makes the case for why every investor, regardless of sector focus, should be paying attention to defense tech.

Hunting for quality investments requires digging into established deal flow channels and identifying new areas of opportunity. Here’s why TechNexus Venture Collaborative is doubling down on the defense industry and - regardless of if you’re “a defense investor” - why you’re missing out if you aren’t . Is TechNexus a defense investor ? Not exactly. Is a significant portion of our investment portfolio engaging with the defense industry? Without a doubt. Here are some recent examples: EdgyBees just established its U.S. entity to strengthen its national security efforts Nanograf received $10M from the Army to build its domestic manufacturing facility H3X brought in $1.25M from AFWERX to develop its integrated motor drives KognitivSpark has provided the Royal Canadian Navy with mixed reality tools since 2019 In retrospect, our interest in the defense space is obvious. Our model is primed to bring in and support technologies that drive strategic initiatives within complex business units, so founding teams willing to engage in the defense acquisitions process see value in collaborating with our corporate partners. But why should other “non-defense investors” engage in the space? Let’s look at the 2024 National Defense Authorization Act Budget Request for answers. The above chart can be read as the executive branch requesting that the legislative branch allocate $842B to support National Defense efforts , with $170B going towards Procurement and $145B going towards Research, Development, Test, and Evaluation . Together, these allocations for purchasing and innovating would be 37% of the National Defense budget . Where does this funding - and the rest of the budget - go ? Of course, it isn’t all going towards buying or building lethal technologies. Think of everything a typical organization would need to support 1.3M full-time and over 750K part-time employees. Then, think of an organization of that size that needs its own health and education systems. And any of them live w

By Nathan Musso at TechNexus Venture Collaborative