IQT Explains: The Art of Investing for National Security
Mar 22, 2023
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Learn how IQT connects startups with government agencies for national security through strategic investments. Discover how IQT sources and adapts startup tech, and the value of conversations and exploring solutions. Explore the investment decision-making process at IQT and its role as the venture arm of the CIA.
IQT is a not-for-profit dedicated to mission impact, focusing on investing in technologies that have commercial use and viability while advancing the mission needs of government partners.
IQT connects government agencies, venture capital communities, and startup companies to cultivate new technology, providing funding and guidance to de-risk the development of the product and ensure enhancements are aligned with the company's commercial roadmap.
Deep dives
Overview of IQT
IQT is a strategic investment firm that identifies and matches emerging technologies developed by startups to address gaps in national security. They focus on mission impact and technological relevance, investing in technologies that have commercial use and viability while advancing the mission needs of government partners. IQT connects government agencies, venture capital communities, and startup companies to cultivate new technology.
Investment Process of IQT
IQT sources and invests in companies that offer innovative solutions. They assess the market opportunity and product execution of the startups while considering the impact on national security. IQT provides funding and guidance to de-risk the development of the product and ensures that enhancements are aligned with the company's commercial roadmap. The goal is to bring technologies that have a commercial market opportunity and can also address government needs.
Benefits for Startups
By partnering with IQT, startups gain exposure to government agencies and receive insights on how their technology can solve mission challenges. IQT provides leverage and de-risks the path for startups to sell their products to the government. The work programs or contracts focus on enhancing the commercial product rather than building bespoke solutions. Success is measured by the impact the technology makes on national security and the financial outcomes for the startups.
Differentiation and Collaboration
IQT is a unique nonprofit strategic investor for the US intelligence and defense communities. They differ from traditional venture capital firms and government innovation entities. While they have complementary goals, IQT emphasizes mission impact and financial returns. They collaborate with other entities in the ecosystem, such as institutional venture capital firms, defense contractors, and government innovation activities. IQT aims for a win-win scenario where the technology has a mission impact and the startup achieves financial success.
In 1999, a global technology revolution was underway and the U.S. government saw an opportunity to harness the power of startup technology to enhance national security. The outcome? IQT was founded to identify and match emerging technology developed by startups to address gaps in national security technological capabilities. Almost 25 years later, IQT continues to serve the national interest, connecting a diverse ecosystem comprising national security, venture capital, and startup communities.
How does IQT accomplish this? Listen in as host Vishal Sandesara is joined by IQT’s A.J. Bertone and Matt Kemph to provide insight into how IQT makes investments and the impact they have on national security.
Key Takeaways:
• Why IQT is a not-for-profit dedicated to mission impact
• How IQT sources and makes investments
• How IQT adapts startup tech for national security