With evident increased interest in defense innovation, Booz Allen Hamilton is infusing an additional $200 million into its venture arm, bringing the total capital base owned by Booz Allen Ventures to a healthy $300 million.
The company plans to make 20–25 investments over the next five years, targeting early-stage startups developing technologies with clear national security applications, from AI and autonomy to quantum and advanced manufacturing.
This capital isn’t just about financial return. It’s a long-term bet on America’s ability to compete and win, in the global technology race.
“We are in a race for global tech supremacy, and America’s innovation ecosystem is our most important source of strategic advantage,” said Matt Calderone, chief financial officer at Booz Allen Ventures. “Booz Allen is committed to fueling the solutions that will keep the U.S. strong safe and prosperous.”
This isn’t Booz Allen’s first foray into venture capital. Since launching Booz Allen Ventures in 2022, the firm has quietly built a portfolio of 17 companies, including:
Each investment aligns with Booz Allen Ventures’ broader mission to deliver emerging commercial technology directly into U.S. government operations.
But unlike traditional VCs, Booz Allen offers more than capital. It provides guidance on navigating procurement, securing authority to operate, and aligning products with mission needs.
“Hidden Level is proud to be a part of the Booz Allen Ventures portfolio, where our shared commitment to national security translates into a strong strategic working relationship,” said Jeff Cole, CEO and co-founder of Hidden Level. “Together, we are not just developing but delivering real solutions for DoD customers: combining innovation, technical rigor, and operational readiness to protect the warfighter and U.S. critical infrastructure.”
The new capital will also allow Booz Allen Ventures to expand its scope. Beyond core areas like AI, cyber, and autonomy, the firm is moving into deep tech and American reindustrialization, a priority increasingly tied to national security.
“We are also going to go pretty hard on jobs, manufacturing, and reindustrialization,” said Calderone.
The firm sees industrial innovation, think robotics, advanced materials, and secure semiconductor supply chains, not just as economic drivers, but as essential to long-term defense readiness.
That includes startups working in manufacturing technology, a new and notable area of focus for the fund.
In Booz Allen’s view, many of the best startups building for defense don’t actually need cash; they need access.
“The best startups don’t need capital,” Calderone explained. “What they need is help to grow faster or get access to the government.”
And that’s where Booz Allen Ventures plays differently. The firm offers startups a path to co-develop and scale products within the complex U.S. federal system. Its experience as both a systems integrator and government services giant gives it a unique role as a bridge between tech and mission.
“We understand the government and we get technology,” Calderone added. “To them, that’s useful.”
This hybrid approach is particularly relevant now. With the Department of Defense encouraging broader commercial collaboration through initiatives like DIU 3.0, CDAO, and the Replicator program, the window for impact is wide open, but not forever.
While traditional VC funding has seen volatility, corporate venture arms are on the rise. According to Global Corporate Venturing’s 2025 annual report, rounds involving corporate investors grew 20% last year, hitting $133 billion.
Booz Allen’s expansion comes as other Arlington-based and Silicon Valley firms race to back startups tackling defense-critical challenges, from drones and space tech to cyber and AI. Several regional VC funds focused on defense are also actively raising new capital.
Still, Booz Allen Ventures stands out for one reason: alignment with real-world missions. These aren’t abstract bets on future valuations; they’re designed to integrate into federal programs with measurable impact.
“Our national defense requires fast, powerful technology solutions that deliver outcomes when they are needed most,” said Brian MacCarthy, managing partner of Booz Allen Ventures. “Now, among fierce global technology competition and evolving geopolitics, this expansion gives us new capacity to collaborate and build with brilliant founders and deliver the best commercial tech to our nation at speed and scale.”
In an industry often criticized for moving too slowly, Booz Allen Ventures is betting that venture-backed speed, combined with mission-grade credibility, will be a winning formula.
And in the race for defense innovation, that edge may make all the difference.
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