What Does Lockheed's $1bn Venture Capital Fund Support?

Lockheed Martin announced it is increasing the capacity of its venture capital fund, Lockheed Martin Ventures, from US$400m to US$1bn.

The fund has invested in a wide variety of companies in industries that range from AI and robotics, microbial foods, radar and drone related companies as well as solar modules for space. 

A boost in funding capacity

The increase in funds to Lockheed Martin Ventures represents the largest boost in investment since the fund was established in 2007 with initial funding of US$100m.

Lockheed Martin says in a statement it will use the increase over future periods to mature critical technologies for national security. The company says this will help accelerate the most promising technologies from R&D to availability in the Defence Industrial Base.

Jim Taiclet, CEO of Lockheed Martin, said in a post on LinkedIn: “We’re increasing our investment in Lockheed Martin Ventures to US$1bn, our largest expansion since the fund was established. This is about accelerating our clock speed and bridging emerging technologies into national security missions faster and at scale.

“From AI and autonomy to quantum and advanced materials, we’re investing early to help shape the capabilities that will define the future battlespace. Just as important, we’re strengthening the defence industrial base by connecting innovative startups with the platforms, partners and missions that matter most.”

What does Lockheed's fund invest in?

The fund invests in a vast range of companies in a variety of fields including manufacturing, quantum computing, autonomy, AI, directed energy, advanced materials and microelectronics.

A few examples of companies that Lockheed Martin Ventures has invested in include 3D Glass ,which develops glass substrates needed for advanced semiconductor packaging, and Elve, which works on millimetre wave amplifiers for defence, space and research.

The fund has also invested in Helicity Space, which is developing fusion propulsion engines that enable efficient travel into deep space as well as other technology. Perseus Materials has also received investment, which makes a manufacturing system for large-scale composite parts.

Superbrewed Foods, a microbial protein company, is also on the list.

Over the past two years, 25 companies have been added to the portfolio.

A critical part of Lockheed Martin’s strategy

According to BBC News, US President Donald Trump has called for US defence spending to be increased to US$1.5tn in 2027, 50% higher than the 2026 budget.

Lockheed Martin has billions in contracts with the US Government, mostly centred on space, defence and weapons capabilities, such as the recently announced US$1.9bn to continue the C-130J Maintenance and Aircrew Training System program which was awarded by the Pentagon. 

The companies that Lockheed invests in as part of its fund form a part of its wider strategy. More than 60 companies have matured to become suppliers to Lockheed Martin, receiving more than US$750m in contracts from the company. 

Evan Scott, CFO of Lockheed Martin, says: "Our venture capital investments are a critical part of our overall strategy to develop and integrate the best technologies for national security now and in the future.

"Our investments help create a pipeline of cutting-edge technologies that create a resilient industrial base, drive growth and ultimately help the United States and its allies deter the most pressing emerging threats."