Amidst cuts in research and grant funding for life sciences and climate tech startups under the Trump administration, the defense technology sector appears poised for growth.
Local investors and entrepreneurs believe that the push for developing technology for defense applications could help fill the void left by reduced funding in other innovation areas.
President Trump seems inclined to redirect military spending towards more agile startups, having consulted with executives in Silicon Valley’s defense tech industry, particularly from Anduril Industries, a military robotics and drone manufacturer.
In March, Trump nominated a senior director from Anduril to oversee the Army’s budget, including procurement, reinforcing this focus.
J.P. Morgan further underscored the attention on defense tech and automation in its recent “Startup Insights” report.
The report highlighted that the Department of Defense (DOD) has implemented new mechanisms to support startups, which is a crucial development for the tech adoption landscape.
“Working in defense tech often means building physical products, which typically requires longer timelines and more capital to develop solutions,” the report noted.
Massachusetts boasts a storied history of involvement in military hardware development, which has led to significant breakthroughs for the DOD, including advancements in robotics, missiles, and radar systems.
“Modern venture [investing] was born here in combination with the DOD,” stated Alexander Harstrick, a combat veteran and cofounder of national security-focused venture capital firm J2 Ventures.
He added, “The resurgence of defense tech means we should expect to see a lot more companies in deep tech choose to stay and grow here.”
Last year, J2 raised $150 million for its second fund and has since invested in local startups like drone software developer Code Metal.
Lincoln Laboratory, based in Lexington at Hanscom Air Force Base, traces its origins back to MIT’s efforts during World War II to develop radar for aerial defense.
Since its establishment in 1951, the complex has birthed over 100 startup companies, including well-known names like Digital Equipment Corporation and power supply manufacturer APC.
Raytheon, now part of RTX, has roots dating back to 1922, having commercialized technology from MIT even earlier.
While RTX’s headquarters are located in Virginia, it retains significant operations in Massachusetts, presenting another potential source of startup talent in the region.
In the broader context, startups focusing on defense, military, and aerospace technology raised $6.6 billion in venture capital and grants last year, with a similar level of funding seen in 2023, according to market tracker PitchBook.
New England startups collectively secured $383 million of last year’s total, although this figure does not encompass some companies that develop technology applicable to both civilian and military sectors.
Among local fundraising leaders, electric aircraft manufacturer Beta Technologies from South Burlington, Vermont, has distinguished itself by raising over $1 billion from investors while targeting both military and civilian markets over the past few years.
Meanwhile, aerial surveillance firm AirQtel in Wellesley raised $27 million in February, and Blue Water Autonomy, a startup with local connections designing unmanned naval ships, secured $14 million in seed funding last week.
Blue Water Autonomy’s cofounder and chief executive Rylan Hamilton previously worked at Amazon Robotics and founded warehouse automation startup 6 River Systems, which was sold to Shopify for $450 million in 2019.
Hamilton noted, “We’re really good at robotics in the Boston area, and we actually have some of the most successful mobile robot companies in the world.”
He further explained their strategy to construct autonomous ships as “the world’s largest mobile robot, which just happens to go across the ocean.”
According to Hamilton, frequent communication among local startups fosters collaboration, where they share solutions to common challenges and leverage each other’s expertise.
“This ecosystem is helpful because we all talk to each other, like how did you solve this problem, who did you talk to,” he said, emphasizing the importance of community in their growth.
Overall, as the defense tech sector continues to gain traction, it signals a potential shift in the innovation economy, shaping a new landscape for startups and investors alike.
image source from：https://www.bostonglobe.com/2025/04/15/business/defense-tech-military-robots-ai-boston/
