Defense & Dual Use
The Next National Advantage
Building Dual-Use Technologies for Defense and Commercial Innovation
The world's geopolitical landscape is evolving rapidly, and traditional defense contractors have been too slow to adapt. Startups are now filling the gaps in advanced cybersecurity, autonomous defense, AI-driven intelligence, energy resilience, and next-generation military hardware. From hypersonic propulsion to decentralized power grids, our portfolio is building the technological foundation for America's future.
QUANTUM ADVANTAGE
The quantum computing market is on track to creating $850B of economic value globally by 2040. Draper-backed companies like Rigetti (recent $35M Quanta investment) and Xanadu AI are developing scalable quantum processors for defense and commercial applications.
$850B
global economic value created by quantum computing by 2040 (BCG Report)
NUCLEAR INNOVATION
Portfolio companies like Oklo (1,350 MW customer pipeline) and Radiant ($100M+ raised) are developing nuclear microreactors and portable nuclear solutions, ensuring energy resilience for both defense and commercial applications.
1,350MW
Oklo's nuclear microreactor customer pipeline capacity
QUANTUM PIONEERS
Since 2014, Draper has backed quantum computing startups like Rigetti Computing and Xanadu AI, positioning the U.S. as a leader in computational advantage for both defense and commercial applications.
2014
Year Draper began major investments in quantum computing with Rigetti
While strategic and financial support is necessary, one of the most important aspects of working with investors like Draper is the moment that you, as a founder, realize you're not the only person crazy enough to believe in your vision. While founders are, of necessity, incredibly confident people, your confidence doubles when someone tells you they think you can make it happen, and backs that up with their money. Draper Associates is distinguished amongst investors in that they have not only a tolerance for risk, but an appetite for it, and they understand that the biggest payoffs require the greatest risk.
Identifying how our technology could be dual-use for commercial and government efforts was key to bringing in a substantial amount of non-dilutive funds. We have a capital-intensive hardware company, so we appreciate Tim for sharing our vision and investing at just the right time to help us close a government deal. We certainly appreciate his gentle approach to letting us figure things out. He's not heavy handed, yet we still feel firmly supported.
PLX Technology, a semiconductor company, was founded in 1986 by Wei-Ti Liu, Jim Guzy, and Mike Salameh, all three of whom were young and minimally experienced in business. Tim Draper, our lead investor and board member, was also new to the startup game...we may have been the first investment of the VC firm he had just launched. Right from the beginning, PLX experienced the typical startup rollercoaster of chaos, setbacks, and changes of direction. In fact, there were times so bleak that some investors gave up and even we founders were doubting our direction. But Tim had a relentless positive energy that turned the tide several times in low moments. He urged us to do the impossible. More importantly, his confidence in our team motivated us to put our doubts aside and break through walls to succeed. Often, VCs fixate on technology and markets. Tim relies more on finding the right management team and supporting them unconditionally as they experiment, thrash, and figure it out. PLX went on to have a successful IPO and fifteen years later was acquired by Broadcom. Today, PLX's products are key building blocks of nearly all enterprise, AI, and hyperscaler data centers. It's hard to imagine that this all started with one investor making a bet on three novice entrepreneurs.
EnerNOC was the time of my life. Lightning in a bottle. A billion-dollar idea that's spawned dozens of companies. Couldn't have done it without Draper's courageous support and intrigue hub and spoke model that teamed us with the DFJ New England team. Appreciate what Draper did for EnerNOC by seeing what others couldn't and putting millions behind us so we could build EnerNOC into a powerhouse that has since become an iconic brand even after we sold it to a bigger company after ten years as a publicly traded company.
The Next National Advantage
The world's geopolitical landscape is evolving rapidly, and traditional defense contractors have been too slow to adapt. Startups are now filling the gaps in advanced cybersecurity, autonomous defense, AI-driven intelligence, energy resilience, and next-generation military hardware. From hypersonic propulsion to nuclear microreactors, missile defense to space-based surveillance, the next wave of innovation in defense and national security will be led by agile, cutting-edge companies.
Dual-Use Technologies
Beyond defense, dual-use technologies are redefining both national security and commercial industries. AI-powered analytics, automation, and cyber resilience are becoming just as essential for enterprise security as they are for military operations. Quantum technologies are unlocking breakthroughs in both intelligence defense systems and commercial computing. Space infrastructure, autonomous robotics, and secure digital networks will be just as critical for global commerce as they are for government operations.
Next-Generation Defense Systems
Companies like Firehawk Aerospace are enabling the next generation of defense systems with solid rocket motors powered by additively manufactured propellant. Venus Aerospace is developing hypersonic spaceplanes for ultra-fast global travel and defense applications. These dual-use technologies serve both military and commercial markets, driving innovation across sectors.
Energy Resilience & Nuclear Innovation
The U.S. needs decentralized power grids, nuclear energy solutions, and more resilient digital infrastructure to remain competitive. Oklo is revolutionizing nuclear energy with compact, self-sustaining microreactors that provide clean, reliable power. Radiant is developing portable, zero-emission nuclear microreactors to deliver clean power anywhere on Earth and beyond. These technologies are critical for both national security and commercial energy independence.
Quantum Computing & Advanced Technologies
Since 2014, Draper has backed quantum computing pioneers like Rigetti Computing and Xanadu AI, developing scalable quantum processors for defense and commercial applications. Quantum computing could generate $450 to $850 billion in global economic value by 2040, with applications in cryptography, intelligence, and computational advantage.
Our Investment Thesis
We back companies building the next generation of cybersecurity, autonomous defense systems, AI-powered intelligence platforms, and space-based surveillance. The companies that build the infrastructure for America's technological future won't just reshape industries—they'll shape history.
Market-Defining Portfolio
Our defense and dual-use portfolio includes Firehawk Aerospace (rocket motors), Venus Aerospace (hypersonic spaceplanes), Oklo (nuclear microreactors, 1,350 MW pipeline), Radiant ($100M+ raised, portable nuclear), Focused Energy (laser-driven fusion), Vvater (water purification), Xanadu AI (quantum computing), Quoherent (mobile quantum processors), Rigetti ($35M Quanta investment, 2025), and D-Wave (quantum optimization). These companies are defining the future of security, infrastructure, and dual-use technology.
The Next Frontier
We're excited about autonomous defense systems, quantum-secure communications, nuclear energy solutions, space-based intelligence, decentralized power grids, and AI-powered defense platforms. The businesses that build off-world economies and reinvent critical infrastructure will define the 21st century.