Booz Allen Ventures Celebrates Its First Year

A lot has happened since Booz Allen launched Booz Allen Ventures in 2022 to jumpstart the development and deployment of dual-use technology solutions for the federal government and U.S. military.

The corporate venture fund has invested in six startups focused on artificial intelligence (AI), machine learning, edge computing, and more. These companies operate at the intersection of innovation and government missions, addressing urgent challenges in national security, special operations, and responsible AI. And Booz Allen Ventures is just getting started.

To celebrate a year of milestones, here’s a look at Booz Allen Ventures’ past, present, and future.

“Booz Allen Ventures is identifying and accelerating critical technologies for our U.S. government clients—and it is also empowering our firm to harness bigger, faster technology waves. Through the fund, we don’t just invest in niche capabilities; we provide clients with direct access to—and application of—breakthrough technology that will transform the next generation of national security and global defense,” says Booz Allen Chief Technology Officer Susan Penfield. “The program’s impact this past year demonstrates the value of mission-focused investments and I’m excited to continue sharing that impact with our clients, ecosystem partners, employees, and the investor community.

What problems can we solve? Which are the most promising dual-use startups to help us solve them?

These questions have guided Booz Allen Senior Vice President Brian MacCarthy since 2015 when he started talking with clients and startups developing emerging technologies as the head of what was then Booz Allen’s new Tech Scouting division.

“I was meeting with hundreds and hundreds of startups, Pentagon officials, innovators, and accelerators—folks at the cusp of driving innovation at scale and speed,” he says. “Now, we are finding the technical gaps and trying to solve them with dual-use solutions—and quickly—meeting missions by accelerating the deployment of this technology in a low rate initial production (LRIP) model.”

As the tech exploration lead for Booz Allen Ventures, Brian says his work today involves bringing together what government agencies need and what startup founders are trying to build—all to fill in the gaps in public sector innovation faster.

“Our approach to corporate venture capital and being really mission-focused will separate us as a player,” Brian says. 

Just one year in, Booz Allen Ventures companies are already operating at the heart of today’s most urgent challenges and opportunities.

• In February 2023, Wired magazine reported how an AI startup tracked the location of a Chinese surveillance balloon flying over the U.S. This startup was Synthetaic, one of Booz Allen Ventures’ first investments, focused on developing synthetic data for AI missions and training.
• As one of only 11 companies awarded funding by the Department of Defense (DOD) in 2023, Hidden Level develops passive aerial monitoring technology for unmanned aerial systems, like drones, in high-interference environments. The technology delivers real-time airspace visibility to defense organizations and helps them detect and respond to silent airborne threats.

One of the most important technologies of our time, AI has been a priority in Ventures investments to date.

“AI is transforming the federal sector. It is creating opportunities to more efficiently and holistically address the long-standing challenges that the government has been facing,” says Kerry Chin, AI lead for Booz Allen Ventures. “AI has a range of applications, including leveraging large untapped data sources, synthesizing actionable insights, developing algorithms, and assisting communication functions. Booz Allen is looking for AI companies that can take advantage of these opportunities with speed and scale.”

As the largest sole provider of AI service to the U.S. federal government, Booz Allen has a front-row seat to technology’s challenges and opportunities.

• Latent AI’s tools enable machine learning to be deployed to processors as small as microcontrollers. This helps warfighters collect, analyze, and quickly act on data in low-compute, low-power “edge” environments. Its founders are focused on “traversing the valley of death” from technology prototype to deployment. 
• One day before Booz Allen Ventures announced its investment in CredoAI—which developed a platform for context-driven, comprehensive, and continuous AI governance, oversight, and accountability—the White House announced steps to advance responsible AI research, development, and deployment.
• Reveal Technology’s capabilities for real-time 2D mapping, near-real-time 3D mapping, line-of-sight analysis, and route planning complement Booz Allen’s Digital Battlespace platform to help troops make faster, better decisions on the ground. At the recent DX23 Summit, Reveal and Booz Allen leaders spoke about the need to bring data to the tactical edge.

The newest Booz Allen Ventures investment, announced in June 2023, is Shift5. This onboard data company helps strengthen cyber protection and increase operational efficiency for weapons systems and military and commercial fleets. It’s the first investment aligned with Booz Allen’s National Cyber business—and reflects the speed at which attack surfaces expand, necessitating modern cyber solutions.

“We have invested in technology startups that dramatically streamline and transform how federal agencies carry out critical processes, which are central to their missions,” says Booz Allen Ventures Managing Director Travis Bales. “We increase speed to deployment by connecting these startups with Booz Allen’s developers,” Travis explains. “It’s a unique collaboration that translates into faster access to emerging technologies for the agencies we serve across sectors and missions.”

“As AI grows more prevalent both in the U.S. and globally, Booz Allen will prioritize delivering responsible and trusted AI to the U.S. government while ensuring speed,” says Kerry. “Our recent strategic investment in CredoAI this year is a reflection of our commitment to responsible AI—and how we intend to usher in emerging technology responsibly.” 

“Cyber and artificial intelligence touch every part of our lives and business, and it is imperative that we have a good grip on these sectors,” says Wes Blackwell, a Booz Allen Ventures managing director who oversaw the Hidden Level investment.

What’s next? Wes explains that client demand and Booz Allen’s VoLT (Velocity, Leadership, Technology) growth strategy will guide upcoming investments. And the Department of Defense, for example, faces significant challenges, such as a shifting global landscape and increasingly advanced threats.

“DOD leaders know the game has changed and that they need new technical advantage to outpace adversaries, and we need to figure out better ways to position them to win,” says Wes.

So what’s next for Booz Allen Ventures?

“It’s full steam ahead—we’re going to be hyper-disciplined in making investments in groundbreaking innovations that advance national security and give the U.S. an edge,” says Wes. “Investing in startups is a prime vehicle for driving change at the urgent speed with which it is needed for mission success and to remain globally competitive.”