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Today: May 17, 2024
January 15, 2024
2 mins read

VC’s Disrupting the Military Industrial Complex for Maximum Gains

TLDR:

  • Venture capital firms are making significant investments in military technology, which could have far-reaching consequences for global warfare.
  • These investments are driven by the VC business model, which aims to make limited investments in mobile assets to reach the IPO stage.
  • The Pentagon is being transformed by VC priorities, with the establishment of the Office of Strategic Capital and the Defense Innovation Board.
  • VC firms are advocating for the reform of the Pentagon’s procurement system and the adoption of commercial off-the-shelf items.
  • There is concern that the focus on military applications could lead to the widespread adoption of militarized technologies and an increase in lethal tech and surveillance products globally.
  • VC-backed firms are also steering startups working on civilian technologies towards military applications.
  • The battle between VC-backed firms and traditional defense contractors is intensifying as both sides seek to expand their influence in the military industrial complex.

Traditionally, venture capital (VC) firms have invested in technologies developed for military use and have played a role in turning Silicon Valley into a tech hub. However, today’s biggest VC titans are making transformative investments in military technology that could have serious consequences. These investments divert technological resources away from other critical domestic priorities and create demand for battlefield testing grounds. To transform the Pentagon’s business practices, VC firms are making exotic promises and aligning their investments with the VC business model.

The VC industry is at odds with the military industrial complex, which boasts billions of dollars of permanent infrastructure and complex procurement processes. However, VC priorities are evident within the Pentagon, from the establishment of the Office of Strategic Capital to the Defense Innovation Board. These changes enable the Pentagon to behave more like a VC investor and less like a public agency. Furthermore, financial services companies are developing innovative products to facilitate the expansion of VC-backed defense tech in Pentagon contracting.

A major focus of VC discourse is the reform of the procurement system to acquire more commercial off-the-shelf items. This is marketed as a way to match the production methods of global adversaries and reduce upfront costs for the government. However, the widespread adoption of militarized technologies could introduce more lethal tech and surveillance products into the global system, further reinforcing weapons production as the primary avenue to innovation, economic growth, and infrastructure spending.

VC firms are actively shaping the Pentagon’s contracting ecosystem to facilitate this shift towards military technology. They are steering startups working on civilian technologies towards military applications and advocating for the adoption of attractable warfare and just-in-time manufacturing techniques. The goal is to disrupt an industry seen as monopolistic, inefficient, and close to government bureaucracy. However, the traditional defense contractors are fighting back by pushing for increased technology transfer and joint ventures to secure future exports.

In conclusion, the battle between VC-backed firms and traditional defense contractors is intensifying within the military industrial complex. The outcome of this battle will have significant implications for global warfare, as the adoption of militarized technologies and the expansion of lethal tech become increasingly prevalent.

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