The DoD created something called the trusted capital program that encourages venture capital firms to get vetted by the DoD so they can be noted as sources of “clean capital."
By
Paul McLeary on April 12, 2021 at 6:01 AM
F-35 production line
WASHINGTON: Faced with a massive spike in Chinese companies burrowing into the US defense manufacturing base, a new Pentagon effort has approved more than $311 million in potential partnerships between US venture capital firms and small tech firms since January in an attempt to keep Chinese money and influence out.
In recent years, Chinese investment in small US tech and manufacturing firms has increased by a staggering 420% according to one analysis, an avalanche of money that could directly impact national security if that spigot were turned off in a time of crisis.
Saturday, January 16, 2021
On January 13, 2021, the Department of Defense (DoD) announced the launch of its Trusted Capital Digital Marketplace (TCDM) to support qualified small and medium sized businesses (“Domestic Companies”) that make up the defense industrial base (DIB). The TCDM establishes a forum to provide selected innovative domestic companies with access to “vetted” sources of private capital in the form of loans, loan guarantees, incentives, and investments to enhance the capability of the DIB to serve our defense and national security needs.
The TCDM has been in development for several years, and is comprised of military stakeholders, trusted capital providers, and capability providers.