One of Point72's portfolio companies, Shield AI, develops AI-powered fighter pilots and drones for the U.S. Air Force and U.S Army. Gwak believes that autonomous drone swarms have the potential to shift the global superpower balance. He also discusses the impact of the Ukraine conflict on defense tech, highlighting the effective use of drones in the battlefield. Gwak notes that while the U.S. is a major customer for defense tech companies, the overall spending of the U.S. and its allies on defense is $1.6 trillion, making it a huge market. He also observes that more venture investors are showing interest in defense tech.
Key takeaways:
- Dan Gwak, an investor at Point72 Ventures, has been investing at the intersection of national security and technology, leading a team that has invested over $1 billion into roughly 130 companies.
- Gwak believes that defense tech has gained significant traction among venture investors and founders, due to its importance to the government and potential to shift the global superpower balance.
- He cites the example of Shield AI, a portfolio company that develops AI-powered fighter pilots and drones, as a business that can grow quickly if it aligns with the government's priorities.
- Gwak also notes that the U.S. Department of Defense's $800 billion budget currently allocates only 1% to startups, suggesting a significant opportunity for transformational technologies from startups in the future.