Defense- & Dual-Use Technologies Edition

Bazooka-carrying drones, torpedo vs torpedo, and more

Defense and dual-use texhnologies

Sep 27, 2024

Good morning,

Earlier this week, China lobbed an ICBM into the Pacific in its first test since 1980. It turns out that they did give the U.S. advanced notice of the firing, helping to lower the risk of unintentional escalation. Russia is building drones in China and now they’re even putting bazookas on some of them. And, Costanoa has raised its Fund V to keep deploying into early stage companies including in defense tech.

Let’s go!

News Headlines:

Hurricane Helene continues to intensify as it heads towards Florida into a 'catastrophic,' 'life-threatening,' and 'unsurvivable' storm (BBC)
Feds charge New York mayor Eric Adams with corruption charges (RT)
The U.S. and allies are calling for an immediate 3-week cease-fire between Israel and Hezbollah (AP)
In 2024, CVCs participated in 28% of overall venture deals, new report shows (FRT)
China is weighing a $142B capital injection into top banks (BBG)
FBI is investing VC Hone Capital over China secrets (TC)
China gave advance notice of its ICBM test to the U.S. (BBG)
Congress prioritizes AI, modernization in defense funding bill (GovC)
AUKUS defense chiefs to meet in London, discuss Pillars 1 and 2 (DS)
Russia lowers the threshold for nuclear weapons use (RT)
The Taliban is, once again, ‘Talibanning’ women from education, jobs, and appearances in public; four western countries to start legal proceedings against the regime (AP)
U.S. Steel: arbitration board rules in favor of Nippon Steel's $14.9B buyout (RT)

Defense & Dual-Use Technologies

As war rages in Ukraine, investment in European defense and dual-use tech skyrockets fivefold since 2018 (TC)
One of China's leading defense tech companies' stocks are down 39% over the last three years, despite an 8.6% bounce this week suggesting volatility in their sector (SWS)
China’s newest nuclear submarine sank earlier this year, setting back modernization efforts (RT)
Russia has secret war drones manufacturing project in China (RT)
Russia is also mounting bazookas on drones (FOR)
The FBI says it has disrupted major Chinese hacking operation that threatened critical U.S. infrastructure (CNN)
US seeks to ban Chinese software from cars, citing national security concerns (ABC)
Chinese investment in ports, communications seeks to project global power (USNI)
China tightens military-civilian export controls ‘just in time’, experts say (SMCP)
US 'concerned over export of iCET dual-use items to Russia' (ET)
Russian ICBM fails in test launch (WP)
Navy CNO unveils ‘Project 33’ with a heavy emphasis on robotic systems, information dominance (DS)
Italy's ICE Agency hosts NATO and EU to talk emerging and disruptive technologies (EUN)
UAE defense-tech group Edge launches new space focused Fada (GN)
Japanese gov't to create framework to use startups' advanced techs for development of defense equipment (JN)
European navies are seeking torpedoes to intercept other torpedoes (DN)
BAE Systems invested $150M for a new engineering and production facility in Austin to support innovative defense technologies (CBS)
U.S. Missile Defense Agency picks Northrop to produce first hypersonic glide phase interceptor (DS)
The Northeast Regional Defense Technology Hub wins $30M from the DoD to work on next-gen computer tech—including Quantum Computing (TU)
Epirus to provide new drone-zappers to U.S. Marines by end of year (DS)
Mistral protests $990M U.S. Army award to AeroVironment for small, kamikaze drones trigger 'stop-work' order (DO)

Deal Flow:

Costanoa Ventures closes oversubscribed $275M early-stage Fund V with continued focus on cybersecurity and defense tech; previous investments include Vannevar Labs, Muon Space, and more (GNW)
Carlyle-backed aircraft maintenance firm StandardAero is seeking to raise $1.1B at a $7.5B valuation in its US IPO (BBG)
Pyka secures $40M Series B led by Obvious Ventures to advance commercialization of dual-use autonomous electric aircraft (PRN)
HavocAI raises $11M in seed funding led by Scout Ventures to fuel the company's mission enabling ultra low-cost autonomous surface vessels to operated at unprecedented scales (PRN)
NATO's first quantum tech investment, a €5M seed round, goes to Aquark Technologies—a Southampton University spinout to develop advanced position, navigation, and timing technology (TNW)
Indian startup Sharang Shakti raises $0.6M in pre-seed co-led by AUM Ventures and Venture Highway for counter-drone technologies (ETR)

Opportunities

DARPA is sponsoring a webcast to provide information to potential proposers on the objectives of the anticipated Human-AI Communication for Deontic Reasoning Devops (CODORD) Disruption Opportunity (DO). The Information Session will be held via prerecorded webcast on October 8, 2024, from 11:00 a.m. to 12:30 p.m. (SAM)
DARPA is soliciting innovative proposals in the following technical areas: Advanced concepts for high-density three-dimensional chip-to-chip and intra-chip optical routing in integrated photonic microsystems (SAM)