So you wannabe a DefenseTech investor, Part I
Resources
No question about it, Defense Tech and VC are hot.
The New York Times ran an article two weeks ago about military leaders that are retiring to VC gigs (often advisory as Venture Partners).
They followed that up shortly by a list of veterans in venture (while a good list, there are some people that I know missing).
And DefenseTech is a hot sector, seemingly recession proof. Heck, even the recently released National Defense Industrial Strategy calls for VC investment into the sector, and the Pentagon has created an office dedicated to increasing VC involvement in defense.
I regularly get asked for advice from transitioning servicemembers looking for opportunities in this “sexy” industry.
In light of that, this edition of Venture Wednesdays from Building our Defense is focused on individuals (particularly those leaving the military or Defense Department) that might be interested in learning more about venture capital. I’m providing a list of resources that I’ve used in my own journey that might be helpful. Let us know in the comments any other resources that you’ve found helpful.
I’ll circle back next week to discuss my own thoughts on transitions from the military to VC. But for now, enjoy the resources!
Books:
Venture Capital
The Power Law - Sebastian Mallaby | Mallaby provides a history of Venture Capital and its role in shaping our economy and technology. Throughout it, he also introduces important concepts (such as the Power Law about which the book is named and that drives everything in venture).
Secrets of Sand Hill Road - Scott Kupor | Kupor explains in clear terms how venture capital and the startup ecosystem work. He provides a clear understanding of the processes, languages, and deal structures VCs use. It’s important to note that Kupor is a partner at a16z.
The Success Equation - Michael Mauboussin | Mauboussin takes a look at the roles of skill and luck in various endeavors—including in investing. It’s an interesting and slightly contrarian way to think about VC.
Venture Deals - Brad Feld, Jason Mendelson | This book is similar to Secrets of Sand Hill Road in its coverage. Look at it as the text book for VCs and a great reference. What is carry? See page 172. What are liquidation preferences? See page 54. Venture Debt? Chapter 11.
Zero to One - Peter Thiel | Thiel (PayPal, Palantir Technologies, Founders Fund) knows a thing or two about creating incredible companies. His book Zero to One captures the lessons about how to build a company that creates new things.
Defense and Dual-Use Technologies
The Kill Chain - Christian Brose | Brose argues that our procurement and acquisition processes have stagnated resulting in an inability to apply emerging technology to warfare. He envisions an updated kill chain centered on dynamic networks: large number of smaller, attritable machines.
T-Minus AI - Michael Kanaan | Kanaan explores the development of AI systems and their impact on global power politics.
When the Heavens Went on Sale - Ashlee Vance | Vance explores the privatization of space over the past 20ish years and the role of VC and tech.
Wired for War - P.W. Singer | Singer explores recent developments in robotics and autonomous warfare.
Podcasts:
20VC - 20VC host Harry Stebbings sits down with leading VCs each week to interview them on a range of topics including how they found their way to VC, industry trends, opportunities, and more. He also regularly interviews founders and operators for best practices.
The a16z Podcast - This podcast aims to make sense of how technology changes everything for builders, the tech curious, and for anyone seeking to understand the future, now. Hear from leading voices including many partners at a16z.
Acquired - Acquired tells the stories and strategies of great companies, hosted by two VCs. The show has over half a million listeners and has been ranked the #1 Technology show on Apple Podcasts and Spotify. Pay special attention to this episode on how VC firms actually work.
The Convergence - The Convergence is an Army Mad Scientist podcast with a distinct focus on divergent viewpoints, a challenging of assumptions, and insights from thought leaders and subject matter experts. Occasionally discusses technology and its role in warfare.
The Merge - Make sense of defense with insights, salt, and wit about all things military, technology, industry, policy, strategy, and history through the lens of fighter pilots, venture capitalists, and entrepreneurs.
The Startup Defense - The Startup Defense explores the intersection of commercial technology and defense innovation. Callye Keen talks with expert guests about the latest needs and trends in the defense industry and how startup companies are driving innovation and change. From concept to field, The Startup Defense covers artificial intelligence, cybersecurity, mission computing, autonomous systems, and the manufacturing necessary to make technology real.
TechCrunch Equity - The intersection of technology, startups, and venture capital touches everything now. That’s why Equity unpacks the numbers and nuance behind the headlines for entrepreneurs and enthusiasts alike.
TechCrunch Found - How do you build a company from scratch? How do you take an idea and turn yourself into a founder? Find out from those who’ve already taken the plunge and are in the weeds of entrepreneurship.
Voices from DARPA - DARPA offers a revealing and informative window on the minds of the Agency’s program managers, as they strive to change what’s possible.
Newsletters:
Building our Defense - by yours truly - 2-3x editions/wk. Covers the intersection defense, technology, and venture capital.
CB Insights - The dumb-simple way to track tech markets, money and mega-trends. You’ll laugh. You’ll cry. And you’ll be even smarter. Join 564,026 of the most beautiful nerds in the world and stay 3 steps ahead of all things tech.
Defense Tech and Acquisitions - Pete Modigiliani and Matt MacGregor provide regular and incredible coverage of the DoD’s acquisition systems, reforms, and processes.
Defense Tech Jobs - Morgan Matlock and Noah Sheinbaum scrub the internet to find open positions working on hard problems in national defense.
GoingVC - John Gannon | Gannon provides a wealth of resources for VCs and aspiring VCs, including research, guides, models, interview prep tips, and opportunities.
Investing 101 - Kyle Harrison | Harrison is a VC at Contrary, with experience at Index, Coatue, and TCV. He provides fantastic insights into the community.
Payload - Covering the business of space and investment news
Pitchbook - Stay ahead in the evolving world of VC, PE, M&A, and leveraged finance wtih essential information delivered right to your inbox.
StrictlyVC - Provides daily information about the VC scene in Silicon Valley and beyond.
Techmeme - Techmeme is a news aggregator for all things tech. Their newsletter gives you the news and commentary they've posted throughout the past 24 hours, so you won't miss a big story. And with a sleek interface organizing stories into categories, it's easy to scan inside your mail app.
Guides:
John Gannon Blog: How to Break Into Venture Capital
Cowboy Ventures: Breaking into Venture
Signature Block - How to break into VC
Programs:
Defense Ventures Program - A fellowship for innovative officers, enlisted, and DoD civilians to embed with startups, accelerators, and investors for 8 weeks to bring the latest commercial tech trends and innovation back to the Department of Defense. Participating companies and VC firms include: a16z, Lightspeed, Lux Capital, General Catalyst, NEA, Insight Partners, Squadra Ventures, Harpoon Ventures, Decisive Point, Marque Ventures, id.me, Anduril, Regent, Hermeus, and many more.
TFX Fellows - Every six months, TFX welcomes in a new class of dynamic and driven Veterans completing their degrees (full time students) and military spouses to work with us. This program helps participating individuals gain exposure to venture capital and technology startups as well as accelerate their professional networking.
GoingVC - GoingVC’s flagship course exists to be the premier resource for individuals to build the skills, network, and experience necessary to get hired (or advance their career) in the VC industry through its “Core” track. Individuals interested in raising their own fund can opt for “Raising a Fund” track that includes additional modules as part of the curriculam.
Venture University - Venture University's Investor Accelerators Are Designed For Individuals Looking To Gain High Quality Investment Experience In Order To Break Into The VC/PE Industry, Launch Their Own Funds, & Advance Their Careers
People to follow:
Andrew Glenn - Founder of Building our Defense
Andy Yakulis - Director of Investor and Industry Outreach at DoD’s Office of Strategic Capital
Forrest Underwood - Former CGO of True Anamoly, Founder in stealth mode
Guy Filippelli - Founder and MP at Squadra Ventures
Jake Chapman - Founder and MD of Marque Ventures
Katherine Boyle - GP at a16z’s American Dynamism practice
Lauren Bedula - Managing Director and National Security Technology Practice Lead at Beacon Global Strategies
Mike Benitez - Founder of The Merge and product director at Shield AI
Mike Slagh - CEO of Shift.org, which runs the Defense Ventures Program
Natasha Ahmed - Investor and VP at Disruptive
Nino Marcantonio - Founder of Marcantonio Global
Travis Ledwith - Partner at Marque Ventures
Tyler Sweatt - CEO at Second Front Systems
Keep Building!
Andrew