Silicon Valley's New Front: NightDragon & SVDG Forge Defense Tech Pact

SAN FRANCISCO, CA / WASHINGTON D.C. – March 03, 2026 – In a significant move to fuse private sector agility with public sector security imperatives, investment firm NightDragon and the nonprofit Silicon Valley Defense Group (SVDG) have announced a strategic partnership. The collaboration aims to construct a more robust bridge between the technology hubs of Silicon Valley, the capital markets, and the national security apparatus in Washington, D.C.

This alliance is forged against a backdrop of what experts describe as a uniquely challenging global risk environment. With 61 active conflicts worldwide—the highest number since World War II—and persistent, sophisticated cyber threats targeting critical infrastructure, the need for rapid technological advancement in defense has never been more acute. The partnership formalizes a shared conviction that the traditional, often sluggish, defense acquisition models are insufficient to counter threats evolving at the speed of software.

“As global risk continues to rise, it has never been more important to bridge the gap between Washington, D.C. and Silicon Valley to advance national security, defense, and critical infrastructure,” said Dave DeWalt, Founder and CEO of NightDragon. “By combining NightDragon’s cyber expertise, investment platform, and operator perspective with SVDG’s ecosystem under this partnership, we can help close the distance between innovation, capital, and the institutions responsible for protecting our democracies.”

The 'Dual-Use' Imperative

Central to the partnership's mission is the acceleration of “dual-use” technologies—innovations developed in the commercial sector that have significant applications for defense. This category includes everything from artificial intelligence and autonomous systems to advanced cybersecurity and robotics. For years, the Pentagon has struggled to effectively tap into this commercial innovation pipeline, often stymied by a bureaucratic “Valley of Death” where promising startups with proven technologies fail to secure the large-scale government contracts necessary for survival and scale.

This new collaboration seeks to chart a path across that valley. SVDG, a 501(c)(3) nonprofit, has already established itself as a critical convener, creating an ecosystem that includes defense giants like Lockheed Martin, disruptive innovators like Palantir and Anduril, and a host of venture capital firms. Its annual NatSec100 report has become an influential guide, identifying the most promising venture-backed defense and dual-use technology companies.

According to SVDG's analysis, the challenge is no longer a lack of innovation but a failure of adoption. The group’s most recent report notes that while private capital is flowing into the sector—with the 100 companies on its 2025 list having raised over $70 billion—the government must become a more agile and reliable customer to translate this potential into operational capability. The report cautions that a resilient defense innovation base cannot be built on software alone, highlighting critical underrepresentation in areas like microelectronics, directed energy, and hypersonics.

Catalyzing the Techno-Security Ecosystem

NightDragon, a firm specializing in cybersecurity and national security investments, brings both capital and deep operational expertise to the table. Led by DeWalt, a veteran CEO of major tech companies like McAfee and FireEye, the firm has already backed several companies recognized by SVDG, including Dataminr, Saronic, Horizon3.ai, and Forterra.

One prominent example is Epirus, a NightDragon portfolio company at the forefront of directed energy weapons. The company develops high-power microwave (HPM) systems designed to disable swarms of enemy drones. Epirus recently secured a $43.5 million contract to deliver its next-generation IFPC-HPM systems to the U.S. Army, building on successful deployments in the Middle East and Indo-Pacific. This rapid progression from a non-traditional defense contractor to a provider of critical, field-tested equipment exemplifies the model the NightDragon-SVDG partnership hopes to replicate at scale.

The collaboration will involve joint events, policy roundtables, and shared thought leadership initiatives designed to educate investors, guide entrepreneurs, and inform policymakers. By leveraging their combined networks, the partners aim to streamline the process of getting cutting-edge technology from the lab into the hands of warfighters.

“To effectively address today’s national security challenges, the defense community must remain deeply connected to the technology ecosystems driving innovation,” said James Cross, Co-founder and Board Member at SVDG. “NightDragon brings a unique combination of cyber and defense leadership, investment insight, and operator credibility that complements SVDG’s mission to align people, capital, and ideas in service of national and allied security.”

Building a Modern Defense Industrial Base

This partnership is part of a broader, systemic shift. After decades of mutual skepticism, Silicon Valley and the Pentagon are increasingly aligned. Venture capitalists poured over $28 billion into defense tech in the first half of 2025 alone, and government initiatives like the Defense Innovation Unit (DIU) are working to reform sclerotic procurement processes from within. However, challenges remain. Integrating commercial technology into military operations is not just a technical problem but a cultural one, requiring a greater appetite for risk and a willingness to abandon legacy systems.

The NightDragon-SVDG alliance represents a private sector-led effort to force the issue, creating a self-reinforcing ecosystem where investment follows mission needs and technology finds a clear path to deployment. For companies on the front lines of this shift, the potential is immense.

"When partners unite around a shared mission to advance autonomous systems and other innovations in defense and national security, it creates powerful momentum,” said Josh Araujo, CEO of Forterra, a NightDragon portfolio company specializing in integrated autonomous systems. “As a NightDragon portfolio company and a newer SVDG Industry Council member, we look forward to the real-world impact this partnership will deliver for our national security and defense communities.”

By uniting NightDragon’s investment prowess with SVDG’s convening power, the partnership aims to do more than just fund the next generation of defense technology. It seeks to fundamentally re-architect the relationship between the nation's innovators and its defenders, ensuring the U.S. and its allies maintain a decisive technological advantage in an increasingly turbulent world.