The Department of Defense (DoD) and the U.S. Small Business Administration (SBA) launched the Small Business Investment Company Critical Technologies (SBICCT) Initiative in 2023, a new program aimed at injecting private capital into early-stage companies developing critical technologies and advanced manufacturing deemed vital to national security.
Building upon the SBA’s longstanding Small Business Investment Company (SBIC) program, SBICCT Initiative adds a national defense focus to an established public-private investment model. SBICs are privately managed investment funds that have been sanctioned by the SBA to invest in U.S. small businesses using both private capital and SBA-guaranteed debt, usually at a 2:1 leverage ratio.
Since they are structured as pass-through entities, SBICs offer several tax advantages like capital gains deferral, CRA credit for investors, and less regulatory hurdles for investing.
The selected SBICs under this initiative will foster innovation, accelerate commercialization of emerging technologies, and bolster domestic production—reinforcing the U.S. defense industrial base through strategic public-private collaboration.
In our paper we will be discussing companies that have received funding from the SBICCT Initiative and their respective funds. This program reflects Washington’s increased appetite for leveraging automation and leaning in on venture capital to enhance defense capabilities. While many of these funds and companies are materially different in what they exactly do, the common denominator among all of them is their commitment to elevating national security via innovative research and development.
1. Moonshots Capital (Moonshots Capital Fund 3 SBIC LP)
Overview: Moonshots Capital is a Los Angeles- and Austin-based early-stage venture capital firm that invests in extraordinary leadership teams and defensible technology-based businesses. Founded in 2017 by military veterans Kelly Perdew and Craig Cummings, the firm brings a leadership-first investment philosophy, backing founders with strong executional ability, often with military backgrounds. Moonshots leverages its operational experience, national security network, and founder-aligned approach to support portfolio growth. The firm is known for its thematic focus on leadership, loyalty, and mission-driven entrepreneurship across U.S.-based innovation hubs. Notable investments include Red 6 and ID.me.
Focus: Moonshots Capital Fund III targets pre-seed and seed-stage investments in early-stage technology companies led by exceptional founders, often with prior service or proven leadership backgrounds. The fund focuses on companies operating in dual-use technologies, cybersecurity, SaaS, AI/ML, defense tech, and digital platforms with scalable business models. Fund III emphasizes U.S.-based startups that align with national interest themes or are building high-impact enterprise software solutions. Moonshots typically invests $500K–$1.5M as an initial check, often leading or co-leading seed rounds, and providing active operational and strategic support.
2. Acequia Capital (Acequia Capital Origin SBIC, LP)
Overview: Acequia Capital is a family office-backed venture capital firm based in Seattle and founded by ex-Microsoft executive Mike Maples Sr. and led by Mike Maples Jr., a founding partner of Floodgate. Operating since 2010, Acequia takes a long-term, founder-first approach to investing in early-stage technology companies. The firm is known for its low-volume, high-conviction model, investing personal and family office capital into transformative startups. With a network-driven sourcing model and access to top-tier founders through decades of industry relationships, Acequia plays a strategic and supportive role in company-building, especially in pre-seed and seed stages. Acequia has a stake in Pinterest.
Focus: Acequia Capital Origin focuses on pre-seed and seed-stage investments in bold, visionary founders building foundational technology and software businesses. The fund targets high-potential startups in sectors including enterprise SaaS, developer tools, AI/ML, cybersecurity, fintech, and consumer tech. Origin emphasizes investing at the “origin” point—before product-market fit—supporting exceptional founders from the idea stage. The fund often invests $250K–$1M as an initial check, leveraging its close-knit founder network and long-term alignment through patient capital. Acequia Origin is stage-concentrated but sector-flexible, backing founders solving hard problems with scalable, software-enabled solutions.
3. First Spark Ventures (First Spark Seed II, LP)
Overview: First Spark Ventures is a science-driven venture capital firm based in Boston, founded by renowned scientist and entrepreneur Dr. George Church, along with serial biotech entrepreneurs and investors. The firm focuses on supporting breakthrough companies at the intersection of synthetic biology, deep tech, and health innovation. Backed by scientific rigor and academic networks, First Spark operates with a mission to translate foundational scientific research into impactful commercial ventures. The firm emphasizes long-term, hands-on partnerships with world-class founders building category-defining technologies that can transform industries and improve human health. Portfolio companies include Figur8 and Inworld AI.
Focus: First Spark Seed targets pre-seed and seed-stage investments in companies leveraging synthetic biology, bioengineering, and deep tech to disrupt sectors including therapeutics, agriculture, energy, materials, and diagnostics. The fund invests in first-time and academic founders with novel IP and high scientific defensibility, often spinning out of top-tier research institutions like Harvard, MIT, and Stanford. First Spark Seed emphasizes early validation of platform technologies, company formation support, and long-term alignment with founders. Check sizes typically range from $250K–$1.5M, with high engagement from the GP network and access to deep technical expertise.
4. New North Ventures (New North Ventures Fund II SBIC, LP)
Overview: New North Ventures is a Boston-based early-stage venture capital firm focused on dual-use technologies that advance U.S. national security, economic resilience, and digital sovereignty. Founded by seasoned national security professionals and venture investors, the firm bridges the gap between the public and private sectors by supporting mission-driven startups at the intersection of commercial innovation and government needs. New North Ventures leverages deep domain expertise, public-private networks, and a strong alignment with defense and intelligence communities to help founders scale frontier technologies with real-world security and infrastructure applications. Reality Defender and Star Cube are investments.
Focus: New North Ventures Fund II SBIC, LP focuses on pre-seed through Series A investments in U.S.-based companies developing dual-use technologies aligned with national priorities. The fund targets sectors including AI/ML, cybersecurity, data infrastructure, autonomous systems, energy security, quantum, and next-gen communications. As an SBIC-licensed fund, Fund II deploys capital in underserved markets and partners closely with founders building defensible IP, often with government or institutional customers in mind. Typical check sizes range from $500K to $2.5M, with follow-on capacity and strategic guidance informed by both commercial and federal expertise.
5. Ridgeline Ventures (Ridgeline Ventures Fund II-S, LP)
Overview: Ridgeline Ventures is a Boulder-based venture capital firm focused on investing in early-stage consumer brands that promote healthy, active, and sustainable lifestyles. Founded in 2014 by the creators of natural foods pioneer WhiteWave Foods, Ridgeline combines deep operating experience with founder-first capital to support mission-driven consumer entrepreneurs. The firm is purpose-built to back authentic brands that resonate with today’s values-driven consumers, and it offers more than capital—providing strategic guidance, operational support, and long-term partnership to help companies scale sustainably and with integrity. Ridgeline’s portfolio features companies like Lifeforce, Noka, and Sahajan.
Focus: Ridgeline Ventures Fund II-S, LP targets seed and Series A investments in natural products, active lifestyle brands, and better-for-you consumer packaged goods. The fund emphasizes businesses with strong brand authenticity, loyal consumer followings, and products aligned with health, wellness, and environmental consciousness. Investment sectors include food & beverage, personal care, wellness, and sustainable goods. Ridgeline typically invests $1M–$5M initially, seeking long-term alignment with founders and offering deep operational support through scaling phases. The fund focuses on U.S.-based consumer brands with differentiated products and clear paths to profitability and growth.
6. BlueYard Capital (BY Capital 3 (US), LP)
Overview: BlueYard Capital is a Berlin-based early-stage venture capital firm that backs founders building transformative technologies with the potential to shift power from centralized institutions to individuals. Founded in 2016, BlueYard operates with a highly concentrated, conviction-driven model, typically investing at the earliest stages of company formation. The firm maintains a lean structure and deep technical focus, with a global investment mandate spanning the U.S., Europe, and other innovation hubs. BlueYard is known for its thematic orientation, intellectual depth, and support for open-source ecosystems, decentralized technologies, and paradigm-shifting innovations. Notable investments include Foresight and Pitch.
Focus: BY Capital 3 focuses on pre-seed and seed-stage investments in companies developing foundational technologies in areas such as decentralized infrastructure (Web3), open-source software, biotechnology, new computing paradigms (e.g., quantum and neuromorphic), privacy-preserving technologies, and internet-native networks. The fund prioritizes bold, technically ambitious founders creating new categories or redefining existing ones. BlueYard typically invests $500K–$3M as an initial check, with high conviction and follow-on support. BY Capital 3 maintains a low-volume, high-engagement approach, backing 20–25 companies with the goal of enabling systemic impact through disruptive innovation.
7. AE Industrial Partners (AE Ventures Fund III, LP)
Overview: AE Industrial Partners (AEI) is a private equity and venture capital firm headquartered in Boca Raton, Florida, specializing in aerospace, defense & government services, space, and industrial technologies. Founded in 1998, AEI manages over $5 billion in assets and operates across buyout, growth equity, and venture strategies. The firm brings deep sector expertise, strategic operating insight, and long-standing industry relationships to its investment approach. AEI partners with management teams to drive transformational growth and operational improvement, often in complex or regulated markets. Red Lattice and American Pacific are popular investments.
Focus: AE Venture Funds target early-stage investments in disruptive technologies aligned with AEI’s core verticals, including aerospace, defense, space, cybersecurity, autonomy, AI/ML, and advanced manufacturing. The funds invest in mission-critical innovations with dual-use applications across commercial and government markets. AE Ventures seeks founders with technical depth and market vision, often supporting spinouts from national labs, research institutions, or major primes. Initial check sizes range from $1M–$5M, with follow-on capacity and strategic value from AEI’s platform companies and defense sector network. The venture strategy complements AEI’s private equity platform by identifying future market leaders at an earlier stage.
8. Michigan Capital Network Ventures (Michigan Capital Network Venture Fund V, LP)
Overview: Michigan Capital Network (MCN) is a Michigan-based early-stage venture capital and angel investment platform focused on supporting high-growth companies throughout the Midwest and beyond. With offices in Grand Rapids, Kalamazoo, Detroit, and Midland, MCN combines four regional angel groups with professionally managed venture funds. The firm actively leverages its investor base of experienced executives and entrepreneurs to provide capital, mentorship, and strategic support to its portfolio companies. MCN plays a key role in strengthening the regional innovation ecosystem while maintaining national reach through co-investments and syndicates. Elevate K-12 is a portfolio company for MCN.
Focus: Venture Fund V targets seed to Series A investments in capital-efficient, high-growth companies in sectors including healthcare, life sciences, medical devices, advanced manufacturing, enterprise software, and B2B technology. The fund emphasizes strong founding teams, validated business models, and early commercial traction. While regionally focused on the Midwest, MCN Venture Fund V also participates in national syndicates alongside top-tier early-stage firms. Typical initial investments range from $500K to $2M, with reserve capital for follow-on rounds. The fund seeks companies with clear exit pathways and the potential to scale efficiently with strategic guidance and disciplined capital.
9. America’s Frontier Fund (Frontier Fund I Alpha, LP)
Overview: America’s Frontier Fund (AFF) is a mission-driven, deep-tech venture capital firm based in Washington, D.C., focused on advancing U.S. leadership in critical frontier technologies. Founded with the support of national security, policy, and technology leaders, AFF operates as a public-private partnership and is structured as a non-profit with affiliated for-profit investment vehicles. The firm is uniquely positioned to bridge the gap between government, industry, and academia to accelerate commercialization of transformative technologies vital to U.S. economic competitiveness and national security. AFF invests with a strategic lens, prioritizing technologies that shape the future of innovation and geopolitical resilience.
Focus: Frontier Fund I Alpha, LP focuses on early-stage investments in frontier technologies including advanced semiconductors, quantum computing, artificial intelligence, next-gen networking, microelectronics, synthetic biology, and space systems. The fund targets startups with dual-use potential, particularly those aligned with national security and strategic industrial base priorities. AFF emphasizes U.S.-based companies developing defensible, foundational IP with high-impact applications. Frontier Fund I Alpha typically invests in Seed to Series A rounds, with active support from AFF’s cross-sector network, including government partners, national labs, and industrial stakeholders. The fund seeks to catalyze regional tech ecosystems and accelerate innovation critical to long-term U.S. competitiveness.
10. Snowpoint Ventures (SnowpointVentures II -S&T, LP)
Overview: Snowpoint Ventures is a deep-tech venture capital firm based in the United States, focused on early-stage investments in science and technology innovations with dual-use applications across commercial and national security markets. Founded by experienced investors, scientists, and national security professionals, Snowpoint operates at the intersection of frontier technology and mission-critical innovation. The firm seeks to accelerate the commercialization of scientific breakthroughs that can reshape industries, enhance national resilience, and generate defensible long-term value. Snowpoint emphasizes a hands-on approach, supporting technical founders through early development, customer access, and go-to-market execution. Shield AI is a notable investment.
Focus: Snowpoint Ventures II – S&T, LP targets pre-seed through Series A investments in science- and technology-driven startups operating in sectors such as advanced materials, microelectronics, autonomy, AI/ML, quantum, space systems, and cybersecurity. The fund focuses on companies with dual-use potential, particularly those aligned with U.S. national security and industrial base priorities. Investments center on high-conviction technical teams, breakthrough IP, and strong defensibility. Snowpoint partners closely with federal innovation ecosystems—including DoD, DARPA, and national labs—to support commercialization pathways and bridge the valley of death. Initial check sizes typically range from $500K to $3M, with follow-on capacity.
11. Bluestone Investment Partners (BIP III SBIC, LP)
Overview: Bluestone Investment Partners is a Virginia-based private equity firm focused exclusively on the defense, intelligence, and federal services sectors. Founded in 2010, the firm brings deep domain expertise, long-standing industry relationships, and operational experience to its investment approach. Bluestone partners with lower middle-market companies serving mission-critical functions within the U.S. national security ecosystem. The firm’s team includes former senior military officers, government leaders, and defense industry executives, providing strategic guidance and access to networks essential for scaling in regulated and procurement-driven markets.
Focus: BIP III SBIC, LP targets control and significant minority investments in lower middle-market companies serving the U.S. Department of Defense, intelligence community, and federal civilian agencies. The fund focuses on businesses in sectors such as C5ISR, cybersecurity, software, analytics, mission support, and defense technology. BIP III typically invests in companies with $10–100M in revenue and strong customer relationships within federal markets. The SBIC license enables flexible capital deployment and access to underserved regions and entrepreneurs. Bluestone seeks to enhance enterprise value through organic growth, strategic acquisitions, and government market expertise.
12. One Bow River (One Bow River National Defense Fund, LP)
Overview: One Bow River Capital is a Denver-based private investment firm focused on advancing U.S. national defense and security through strategic investments in dual-use and frontier technologies. Founded by national security and investment professionals, the firm backs mission-driven companies that serve both government and commercial markets. One Bow River leverages deep networks across defense, intelligence, and industrial sectors to support company growth, scale operational capacity, and align with evolving national security priorities. The firm partners closely with entrepreneurs, government stakeholders, and research institutions to commercialize cutting-edge innovation critical to U.S. strategic leadership.
Focus: The One Bow River National Defense Fund targets early- to growth-stage investments in dual-use technology companies that serve U.S. defense, intelligence, and homeland security markets. Focus areas include advanced manufacturing, autonomous systems, cybersecurity, AI/ML, communications, space systems, and energy technologies. The fund prioritizes businesses with strong technical moats, U.S.-based operations, and high relevance to national defense missions. Initial investments typically range from $1M to $10M, with follow-on capital and strategic guidance provided through One Bow River’s public-private network. The fund actively supports portfolio companies in navigating federal procurement, scaling production, and achieving mission impact.
13. Stifel Financial Corp. (Stifel North Atlantic AM-Forward, LP)
Overview: Stifel Financial Corp. is a full-service investment banking and wealth management firm headquartered in St. Louis, Missouri. Founded in 1890, Stifel operates through multiple business segments, including institutional equities, investment banking, public finance, fixed income, and a nationwide wealth management platform. Through its global network and broad capital markets capabilities, Stifel serves corporate, institutional, and high-net-worth clients. The firm has expanded its asset management offerings through strategic partnerships and acquisitions, with a focus on differentiated alternative investment strategies and customized solutions for institutional investors.
Focus: Stifel North Atlantic AM-Forward, LP is a transatlantic venture and growth equity fund managed in partnership with North Atlantic Capital, a Stifel subsidiary. The fund targets emerging technology companies in North America and Europe that are at the intersection of commercial innovation and strategic government priorities, with a focus on dual-use technologies. Key sectors include AI/ML, cybersecurity, enterprise software, autonomy, and digital infrastructure. The fund invests in companies from late seed through growth stages, typically writing checks from $5M to $15M, and provides support in scaling operations, government engagement, and cross-border market expansion.
14. Rochefort Management (Rochefort Ventures, LP)
Overview: Rochefort Management is a Los Angeles-based private investment firm that partners with visionary founders, family offices, and institutional investors to build and scale enduring businesses. Founded by experienced investors and entrepreneurs, Rochefort operates at the intersection of venture capital, private equity, and strategic advisory. The firm takes a long-term, relationship-driven approach to capital deployment, with a focus on innovation, value creation, and aligned partnerships. Rochefort maintains a flexible mandate and cross-sector capabilities, enabling it to support companies across stages and structures while offering operational, financial, and strategic guidance.
Focus: Rochefort Ventures, LP focuses on early-stage venture investments in disruptive technology companies across sectors including enterprise SaaS, AI/ML, fintech, healthtech, digital infrastructure, and consumer innovation. The fund targets companies with scalable platforms, strong product-market fit, and experienced founding teams. Rochefort emphasizes thematic investing in secular growth areas, including the future of work, digital transformation, and data infrastructure. Initial investments typically range from $250K to $2M, with reserves for follow-on funding. The firm is active in both sourcing and supporting portfolio companies, leveraging its network of operators, founders, and family offices to drive strategic growth.
15. BBK Capital (BBK Ventures Fund I, LP)
Overview: BBK Capital is a Dallas-based venture capital and advisory firm focused on partnering with early-stage companies at the forefront of innovation in commerce, consumer, and culture. The firm was founded by industry veterans with backgrounds in venture capital, digital media, brand building, and growth strategy. BBK Capital blends capital investment with strategic and operational support, offering founders access to a curated network of operators, creatives, and technologists. The firm seeks to back companies that shape the future of consumer behavior, digital communities, and emerging platforms across sectors.
Focus: The BBK Ventures Fund targets pre-seed through Series A investments in consumer tech, commerce infrastructure, digital media, web3, and cultural platforms. The fund emphasizes companies building at the intersection of brand, technology, and community—especially those redefining engagement, identity, and transaction in the digital economy. BBK invests with high conviction in visionary founders creating culturally resonant products with scalable business models. Initial checks typically range from $250K to $1.5M, with selective follow-on capital. The fund leverages BBK’s domain expertise in go-to-market, brand development, and growth acceleration to actively support portfolio companies.
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