Humba Ventures has raised $40 million to invest in deep tech and defense tech startups. This sister firm to Susa Ventures aims to capitalize on the surge of venture investments in the defense sector. Co-founder Leo Polovets has adjusted investment approaches for deep tech, focusing on technology viability. The firm emphasizes partnerships and ethical funding sources while aiming to outperform its size through strategic resource sharing.
Humba Ventures has successfully raised a notable $40 million fund dedicated to investing in promising startups within the realms of deep tech and defense tech. This venture operates as a sister firm to Susa Ventures, a seed-stage investment firm known for supporting notable companies such as Robinhood and Flexport. The timing is particularly poignant, as funding for defense tech has surged, approaching $3 billion with numerous startups drawing significant attention in 2024, according to Crunchbase.
While Susa Ventures has concentrated on fintech and software projects, Humba Ventures is already carving its own niche with bold hardware investments, including Treeswift, which employs robotics for forest monitoring, and Antares, which delves into the complex world of nuclear microreactors. Leo Polovets, co-founder of Susa, who also serves as a general partner at Humba, recognized the need to recalibrate his investment strategies as he transitioned into the deep tech arena.
Polovets explained that funding deep tech requires a different lens; instead of focusing on distribution and market fit as one would in fintech, the emphasis is on whether the technology is operational and if it is led by the right team. He emphasized, “On the deep tech side, it’s kind of the opposite, where there’s no question that there’ll be demand for things like cancer cures or cheaper energy. The question is like, is this technology gonna work? Is this the best team that can build it?”
Navigating the intricate landscape of defense tech investment also meant refining his approach to fundraising. Through consultations with peers, Polovets opted to limit his funding sources to those befitting alliances for startups serving the U.S. government, focusing on capital primarily from nations like the U.S., U.K., Canada, Australia, and New Zealand, while explicitly avoiding affiliations with monetary entities from China or the Middle East.
As Humba gears up to enter a competitive environment, sharing a sibling bond with Susa Ventures is seen as a strategic advantage. By pooling resources, including access to essential software discounts and enhanced marketing efforts, Polovets foresees Humba’s impact belied by its relatively modest size. He remarked, “Even though it’s a $40 million fund, I think the resources feel more like that of a $100 million or $150 million fund. Both funds end up basically punching above their weight on AUM.”,
The burgeoning landscape of defense tech presents both challenges and opportunities, and with this well-structured fund and unique investment philosophy, Humba Ventures positions itself to make significant strides in the field.
The current climate for defense tech funding is experiencing unprecedented growth, with venture capital investments skyrocketing. The right kind of financial backing is vital for startups attempting to innovate in the deep tech sphere, which encompasses complex technologies from renewable energy to medical advancements. Humba Ventures aims to seize this opportunity, leveraging connections with its sister firm, Susa Ventures, to create a robust investing platform. The strategic focus on U.S. and allied funding sources aims to establish trust and maintain integrity in a politically sensitive industry.
Humba Ventures has embarked on an ambitious journey with its newly raised $40 million fund, strategically targeting deep tech and defense tech startups. With the guidance of experienced leaders like Leo Polovets, the firm aims to distinguish itself in a crowded market by prioritizing technological feasibility and leveraging shared resources with its sister firm. Their commitment to ethical fundraising reflects a sound strategy poised to navigate the complexities of the defense tech landscape effectively.
Original Source: techcrunch.com
