The Department of Defense’s (DoD) Office of Strategic Capital (OSC) and the U.S. Small Business Administration (SBA) have announced the inaugural group of investment funds licensed under the Small Business Investment Company Critical Technology (SBICCT) Initiative. This program is designed to attract and scale private investment in technologies vital to national and economic security.
Funding Small Businesses with Critical and Innovative Technologies
The SBICCT Initiative functions by licensing private investment funds that commit to supporting small businesses in developing critical technologies. These funds provide capital through equity investments or debt financing, allowing small businesses to grow and bring their innovations to market. In return, investors receive a share of the company’s equity, giving them a stake in the business’s future success. This public-private partnership model ensures that both the government and private investors share the risks and rewards of funding critical technology innovations.
The program targets critical technology areas identified by the DoD, including advanced materials, artificial intelligence, quantum computing, and hypersonic technologies. By channeling private capital into these sectors, the initiative seeks to accelerate the development of next-generation technologies that are crucial for maintaining the U.S.’s military and economic edge.
Strengthening the Defense Industrial Base
Heidi Shyu, Under Secretary of Defense for Research and Engineering, emphasized the importance of this initiative, stating, “The SBICCT Initiative is a pivotal step in ensuring that the Department of Defense can access the critical technologies necessary to maintain our nation’s security and technological leadership.”
The inaugural funds, which plan to invest over $2.8 billion into more than 1,000 companies, demonstrate a significant commitment to strengthening the U.S. defense industrial base. By leveraging the agility and innovation of small businesses, the DoD and SBA are cultivating an ecosystem that supports the development and transition of critical technologies. This ensures that the U.S. remains at the forefront of global innovation, all while sharing both the risks and benefits with private investors who believe in the future of these transformative technologies.
Read More:
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- DOD Office of Strategic Capital Announces Notice of Funding Availability for US Industrial Base
- Defense Acquisition Professionals Complete Immersive Innovation Program
Explore small businesses working in critical and emerging technologies using Public Spend Forum’s recently launched Innovation Ecosystem Dashboard.