Silicon Valley’s defense tech ‘neoprimes’ are taking on Lockheed, Boeing and Raytheon

A surge of innovative defense technology startups in Silicon Valley is attracting significant investment and transforming America’s approach to national security. Among these emerging companies is Anduril Industries, which recently reached a valuation of $30.5 billion following its latest funding round. These startups, often referred to as 'neoprimes,' are taking on established defense contractors like Lockheed Martin, Northrop Grumman, Boeing, and RTX (formerly Raytheon). "Investment in what we call the 'neoprimes' is at an all-time high," stated Jameson Darby, co-founder and director of autonomy at the investment syndicate MilVet Angels (MVA), in an interview with CNBC. Although the funding represents a small portion of the overall defense budget, Darby views the trend as encouraging. Companies such as SpaceX and Palantir Technologies are also considered part of this new wave of defense startups, which are known for their agility and software-driven approaches. These neoprimes are not just building weapons; they are developing dual-use technologies that serve both military and commercial purposes. According to Ernestine Fu Mak, co-founder of MVA and founder of Brave Capital, technologies like artificial intelligence and autonomy are essential for closing critical gaps in national security. As the battlefield evolves, these startups are addressing the need for advanced capabilities in cyberspace and outer space, as well as traditional land, sea, and air domains. Funding for U.S.-based defense tech startups has reached approximately $38 billion in the first half of 2025, with expectations that it might surpass the record set in 2021 if the current pace continues, based on insights from JPMorgan. The changing nature of warfare, shifting from a focus on counter-terrorism to great power competition, demands new technologies that can keep up with the complexities of modern conflicts. Darby notes that the Department of Defense is increasingly integrating dual-use technologies into its operations, sending a clear signal to investors and entrepreneurs about the importance of innovation in security. Recently, MVA emerged from stealth mode, having quietly supported leading defense tech startups since 2021. Its membership now includes tech founders, financial experts, former military personnel, and intelligence officials, all collaborating to strengthen the defense ecosystem. Mak emphasizes that the success of these neoprimes relies not only on technology but also on the expertise and commitment of individuals who bring unique perspectives and skills. She explains that effective national security requires both the insights of military experience and the drive for innovation in technology. Both Mak and Darby agree that the new technologies developed by these startups are reshaping military strategies globally. However, they clarify that the intention behind these advancements is not to initiate conflict, but rather to foster a credible deterrent against aggression. "Our goal is to discourage conflict and ensure that adversaries think twice before jeopardizing peace and stability," Mak concluded.