(Bloomberg) — A VC firm called Forward Deployed Venture Capital has raised a $45 million defense and security fund from some of Silicon Valley’s newly wealthy — winning checks from 150 current and former employees of tech companies like Palantir Technologies Inc., Space Exploration Technologies Corp. and Anduril Industries Inc.
The three-year-old firm, started by general partner Mark Scianna, also pulled in backing from institutional sources like Bain Capital Ventures for the $45 million fund. But Scianna, a former Palantir staffer, did much of his fundraising from individuals and former colleagues.
It “certainly helps that my friends are 10x richer now,” Scianna said. Palantir’s stock price has soared in recent years. Scianna said he did fundraising during “hobbit happy hours,” the nickname for cocktail parties with members of Palantir’s alumni network in Palo Alto, California; New York; and Washington.
Scianna named the firm after his former job at the company as a forward deployed engineer. He worked on building software products for the US Army and Marines in Iraq and Africa for more than a decade before leaving the company in 2019.
“We want to be the first call” for startups working in defense, industrials and other critical industries, he said.
Caroline Toch Docal, head of Bain Capital Ventures’ emerging manager program, said Scianna’s experience was appealing. “His background aligns with the markets he invests in, his investing track record is strong, and he has a proven ability to build trust with discerning founders,” she said.
The current climate hasn’t been easy for small VC firms trying to raise money. Emerging managers “faced existential pressures” last year, according to the National Venture Capital Association, raising fewer funds and less overall capital than any time in the last decade. At the same time, though, venture funding for defense startups has been on the rise, as more VCs chase startups building drones and other national security technology.
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