Investment Strategy
Arsenal Venture Partners invests in early-stage companies that target extremely large commercial markets, but can also leverage the defense industrial complex in a manner that is beneficial to both the company and the defense community. This focus enables AVP to source and identify high-quality opportunities, reduce the risk of each investment, and minimize the capital required to reach the market. This is accomplished by (1) activating defense resources to source opportunities or provide due diligence assessments, (2) obtaining synergistic funding for research, development and productization, or (3) attracting development partners, field trials or customers far in advance of the commercial market.
Case Study:
Company: PowerPrecise Solutions
Sector: Semiconductor
Employees at investment: Two founders
Co-Investors: Intel Capital and Venturetech (Taiwan Semiconductor)
- Led Series A investment
- Attracted strategic investors
- Obtained research and development funding for product development
- Secured original contract for prototypes
- Attracted initial defense-focused customers
- Supported the growth and expansion of the team and partners
Outcome: Successfuly acquired by Texas Instruments less than 40 months after investment
AVP's experience working with the defense industry and its proprietary relationships and knowledge allow the firm to tap into tremendous R&D resources. The Department of Defense accounts for 22% of all R&D Spending in the U.S. This is nearly twice as much as ALL R&D spending in France and more than twice as much as Microsoft, IBM, Google, Cisco, HP and Dow – COMBINED.
