Booz Allen Hamilton has increased to $300 million its capital commitment to its venture capital arm as part of efforts to drive U.S. innovation through investments in early-stage technology companies with tech capabilities that could transform U.S. government missions.
The company said Monday it expects Booz Allen Ventures to make 20 to 25 new investments over the next five years.
“We are in a race for global tech supremacy, and America’s innovation ecosystem is our most important source of strategic advantage. Booz Allen is committed to fueling the solutions that will keep the U.S. strong, safe and prosperous,” said Matt Calderone, chief financial officer at Booz Allen.
Calderone noted that Booz Allen Ventures demonstrates the combination of strategic investments in startups with the parent company’s advanced technology and expertise.
Booz Allen Ventures Invests in AI, Cyber & Other Tech Areas
In 2022, Booz Allen Ventures launched as the tech company’s $100 million venture capital arm to help accelerate the development and deployment of commercial technologies designed to support federal agency customers’ missions.
Since its launch, Booz Allen Ventures has invested in 17 portfolio companies, including Albedo, Hidden Level, Second Front and Shift5. These companies develop advanced platforms in artificial intelligence, cyber, autonomy, space and quantum computing, among other tech areas.
In June, ConductorAI secured an investment from Booz Allen Ventures to help advance the delivery of its AI-driven platforms that could help federal agencies modernize operations.
The venture arm also aims to invest in companies driving U.S. reindustrialization.
“Our national defense requires fast, powerful technology solutions that deliver outcomes when they are needed most,” said Brian MacCarthy, managing partner of Booz Allen Ventures.
“We’ve never lost sight of that mission; Booz Allen has been serving it every day for decades. Now, among fierce global technology competition and evolving geopolitics, this expansion gives us new capacity to collaborate and build with brilliant founders and deliver the best commercial tech to our nation at speed and scale,” added MacCarthy.
