Traditionally, innovative start-ups, with new technologies and ambitious goals, turned to venture capitalists when they sought to finance new initiatives. Venture capital firms (VCs) are known for their willingness to take on high-risk investments when no one else will, and thus, are often the reason behind success stories for hard-to-build high risk innovation such as robotics or advanced technologies Yet, in one critical space, such VC-led innovation is changing. VCs are no longer the primary investor in defensive startups, instead legacy investors like private banks, defense organizations such as NATO, government agencies, and even development banks have made a recent shift into venture investment. Startups like Hadrian, an advanced precision manufacturing company, or Castelion, a novel missile producer, have received investments from JP Morgan, the Pentagon, and many major managed private funds.
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