Prnewswireยท2025-06-10 13:30Core Insights - Venture Capital investment in frontier technology has increased by 47% year-over-year, driven by AI demand, defense innovations, and industrial automation growth [1][2] - Despite supply chain challenges and economic uncertainty, the frontier tech sector is experiencing significant growth, with strong VC enthusiasm for fundraising [2] Investment Trends - VC fundraising in hardware has reached a 10-year high, with one-third of fundraising dollars allocated to hardware-focused VC funds, up from 20% in 2021 [4] - Total VC investment in defense and aerospace surpassed $4 billion in 2024 and is projected to reach $12 billion by the end of 2025 [4] - Investment in AI and robotics is increasing, with VCs focusing on AI compute and hardware as generative AI adoption rises [4] Defense Sector Insights - Annual VC investment in defense technology has exceeded the budget for the Defense Advanced Research Projects Agency (DARPA) since 2019, indicating a shift in funding for defense innovation [4] - More than 50% of frontier tech unicorns have raised funding in the last two years, highlighting the sector's robust fundraising environment [4]