TLDR:
- Venture capitalists have invested significantly more in defense technologies over the last five years compared to the previous period, largely due to the Defense Ventures Program established by Shift.
- Shift’s fellowship program embedded Department of Defense members in venture capital firms and startups, resulting in a revitalization of the defense technology movement.
American Military-Civil Fusion is at risk with the loss of the Shift Fellowship program. The program, which embedded high-potential Department of Defense members in venture capital firms and startups, played a crucial role in boosting investments in defense technologies. The loss of the program has raised concerns about trust between the private sector and the Department of Defense, and the impact on the innovation ecosystem. Steps are being recommended to mitigate the damage, including a full report on the program’s failure, enshrining a similar program in law, and creating an emergency fund to bridge non-traditional defense companies during continuing resolutions. While the fellowship may be gone, the impact of its alumni continues as they work to support the United States.
