In a rather unique move, a defense-focused lobbying firm and a venture capital fund have teamed up to launch a $100 million investment fund to develop new technologies in national defense and security. The fund is called Anzu-Green Critical Technologies Fund, and it blends the expertise of J.A. Green & Co., a prominent defense lobbying firm, and Anzu Partners, a venture capital firm known for its investments in industrial technologies.
J.A. Green & Co. is known for its tech-centric clients, which include heavyweights like SpaceX and RTX Corporation. By partnering with Anzu Partners, the new fund will focus on companies developing cutting-edge technologies, particularly in cybersecurity, artificial intelligence, and aerospace. Jeff Green, the president and founder of J.A. Green & Co., is optimistic about the fund’s potential to enhance national defense. Green, who will become the new fund’s managing partner, emphasized the importance of this initiative in tackling national security challenges.
Anzu Partners’ managing partner, David Seldin, highlighted the firm’s focus on breakthrough industrial technologies. Typically, Anzu invests in companies with established funding and robust backing from the U.S. government. This strategy will also be applied to the new fund, which plans to invest between $3 million and $6 million in Series B stage companies.
Seldin noted that the partnership combines Anzu’s technology and company-building expertise with the advocacy and business development skills of J.A. Green & Co. The goal is to start making investments in the fourth quarter of this year. Although the fund is based in Washington, D.C., it will seek opportunities nationwide.
Green pointed out the strategic advantage of their D.C. location, given its proximity to key defense institutions like the Department of Defense (DoD) and Capitol Hill. This central location offers direct access to the heart of national security, making D.C. an ideal base for the fund’s operations. Green mentioned that while collaborations between lobbying firms and venture capital firms have happened before, this might be the first with a clear focus on defense.
This new fund is part of a broader trend of venture capital firms establishing a stronger presence in the D.C. area. For instance, Silicon Valley’s Andreessen Horowitz has shown interest in opening offices near the White House. This trend underscores the growing significance of the D.C. region as a hub for defense-related investments.
The creation of the Anzu-Green Critical Technologies Fund aligns well with the DoD’s evolving investment strategies. Traditionally, the government has depended on established contractors for technological solutions. However, there is now a shift towards investing in early-stage technology companies. Green pointed to the DoD’s Accelerate the Procurement and Fielding of Innovative Technologies pilot program as an example of this new approach.
Green believes investing in emerging tech from early-stage companies is crucial for addressing national security issues that large contractors cannot solve alone. This shift recognizes the vital role that small, innovative companies play in overcoming the nation’s challenges. By combining the strengths of J.A. Green & Co. and Anzu Partners, the fund is poised to make a significant impact on national security.
