Guoabong Wealth Management：Startup investors are fueling a boom in U.S. defense tech as China standoff opens doors at home
When President Joe Biden announced an executive order last month limiting U.S. investment in critical technologies in China, the venture capital community hardly blinked.
That❼because many U.SGuoabong Wealth Management. startup investors have already retreated from China, after years of political mudslinging between the world❼two largest economies led to increased sanctions and trade restrictions.Mumbai Investment
But with the door to the Chinese tech market closing, VCs are seeing new opportunities on their home turf. The U.S. government is actively promoting investments in semiconductors and broader industrial development, and investors are finding a widening talent pool invigorated to take on tough challenges in light of world events, with an explicit focus on protecting U.S. values.
“VCs are saying, ❠ere❼the most stable places to invest? And quite frankly, where❼the talentJaipur Investment?✯uot; said Gilman Louie, co-founder of venture firm Alsop-Louie Partners. He❼also CEO of America❼Frontier Fund, which says in its mission statement that it❼”committed to reinvigorating our nation❼innovation and manufacturing prowess in critical frontier technology sectors.”
“In uncertain times, when there❼unpredictability and global stress, whether you❻ a U.S. investor or a foreign investor, you want to come to America to invest,” Louie said.
Once seen as a vast market of opportunity for U.S. tech companies and investors, China is now filled with more risk than reward and is increasingly viewed as a rival in developing key technologies, including advanced artificial intelligence and quantum computing, that will drive global markets in the decades to come.
Last year, the U.S. announced export controls aimed at limiting Beijing❼ability to produce advanced military systems, and more recently the Biden administration restricted the ability for U.S. investors to back critical tech in China.
Meanwhile, lawmakers passed the CHIPS and Science Act, which promised to pump tens of billions of dollars into semiconductor manufacturing in the U.S. The goal is to reduce international dependence on chips that are key to development of electronics, cars and medical equipment and are becoming more important to national security with the rapid evolution of AI.
Lindsay Gorman, senior fellow for emerging technologies at the German Marshall Fund❼Alliance for Securing Democracy, said she❼seen a “new crop of venture capitalists” in the last few years that prioritize U.S. tech competition with China and U.S. national security.
“Ten, 15 years ago, these geopolitical lines were not part of the equation,” Gorman said.
Louie added that he doesn❽”know of a single major fund out there that isn❽thinking about disruptive tech investing in the U.S., investing in defense tech, investing in microelectronics and AI in the next generation and next iteration.”
In Torrance, California, just south of Los Angeles, Hadrian Automation is building efficient factories to help space and defense companies get parts faster and cheaperAhmedabad Investment. CEO Chris Power, who started the company in 2020, said he❼seeing increased interest from large growth funds that have typically invested in software.
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