National security-focused VC firm America's Frontier Fund is raising $315 million for its debut fund

America's Frontier Fund, a venture capital firm with a focus on national security, is working to secure $315 million for its inaugural fund, named the Frontier Fund. This ambitious fundraising effort reflects the growing support for defense technology, particularly in the wake of backing from the Trump administration. Initially, the firm aimed for a $500 million target in early 2023, as indicated in an SEC filing. However, the current strategy outlines a mix of $140 million in private capital from limited partners and $175 million in government-backed loans, according to details from a recently reviewed pitch deck. It's important to note that the fundraising process is still ongoing and the specifics of the deal may evolve. Significantly, part of this financing will be sourced through the Small Business Investment Company Critical Technology Initiative. This initiative, a collaboration between the Defense Department and the Small Business Administration, is designed to stimulate private investment in sectors such as biotechnology, quantum science, advanced materials, artificial intelligence, and aerospace. A representative from America's Frontier Fund chose not to comment on the current fundraising status. The firm plans to leverage government-guaranteed loans to match private investments up to $175 million, with a structured repayment plan over a decade, as reported by Washington Business Journal. In addition to the government loans, the fund has successfully raised $100 million from the state of New Mexico, according to Bloomberg. This private capital raise adds a significant layer of funding to the Frontier Fund, which aims to support startups engaged in frontier technologies such as advanced manufacturing and computing solutions. The firm has already made investments in innovative companies such as Venus Aerospace, which is developing hypersonic engine technologies, and Foundation Alloy, a startup focused on metal production. The $315 million target stands out, especially considering that many venture firms have faced challenges in raising substantial sums due to market downturns and delayed IPOs. In 2024, 121 U.S.-based venture capital firms embarked on fundraising, collectively attracting $5.7 billion in commitments. Notably, the average size for a first fund was nearly $41 million, highlighting the scale of America's Frontier Fund's ambitions. The defense tech sector has seen a marked increase in investment, with commitments rising to $1.4 billion in the first quarter of 2025, a stark contrast to $200 million during the same period in the previous year, according to Pitchbook. Additionally, the firm's Roadrunner Venture Studios is dedicated to supporting pre-seed and seed-stage startups focusing on frontier technologies, primarily in New Mexico. High-profile investors, including former Google CEO Eric Schmidt and Founders Fund partner Peter Thiel, have contributed to America's Frontier Fund's nonprofit arm, the America's Frontier Fund Foundation. This initiative aims to bolster U.S. technological leadership and has collaborated with institutions like the Austin Community College District to enhance advanced manufacturing education programs. Gilman Louie, the CEO of America's Frontier Fund, co-founded and led In-Q-Tel, the CIA-funded investment firm, while co-founder Jordan Blashek has experience from Schmidt Futures, Eric Schmidt's philanthropic family office now known as Schmidt Sciences, which funds research in AI, advanced computing, and biotechnology.