Booz Allen launches $100-million venture capital arm

15 July 2022 2 min. read
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Booz Allen Hamilton, a public sector-focused technology consultancy, has launched Booz Allen Ventures, a $100-million venture capital arm that will invest in commercial technologies for federal clients.

The venture fund will target investments at early-stage companies (seed, Series A, Series B) in the four core areas of defense, AI and machine learning, cybersecurity, and deep technology.

Booz Allen Ventures will build on the consultancy’s tech scouting practice – which specializes in “analyzing industry trends, forecasting what’s next, and mapping the innovation ecosystem for our clients to put solutions into practice,” according to the firm’s website. The tech scouting practice’s research has led to investments in several firms, including Latent AI, Synthetaic, and Reveal Technology.

“Our Tech Scouting program gives us unique insight about where opportunities for hyper-growth exist. But anticipating opportunity isn’t sufficient – we need to deploy capital to move at digital speed,” said Brian MacCarthy, vice president of tech scouting and ventures at Booz Allen. “Booz Allen Ventures allows us to actively bridge the gap between opportunity and capability and accelerate the services-to-solutions transformation. As a strategic investor at the intersection of technology and mission, we are uniquely positioned to lead, connect, and convene advanced tech solutions to drive change in government, faster than ever before.”

Booz Allen launches $100-million venture capital arm

In addition to capital, companies receiving backing will gain access to the 29,500-person firm’s executive, engineering, and client teams, as well as potential contracts with Booz Allen clients.

“We are proud and excited to continue our work with the best startups to support our US government clients,” said Susan Penfield, Booz Allen’s chief technology officer. “Booz Allen Ventures taps into America’s collective ingenuity by investing in software, hardware, and deep-tech startups that offer differentiated applications for the federal sphere, providing our clients access to a next-generation supply chain of breakthroughs critical to America’s national security and economic vitality.”

Booz Allen recently won an IDIQ, single-award contract from NASA with a total potential value of $622.5 million to support the space agency’s IT systems, operational technology systems, and mission systems.

The McLean, VA-based consulting firm also recently saw its merger with cybersecurity firm Everwatch blocked by a civil antitrust suit filed by the US Department of Justice.