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Attracting and Scaling Private
Capital for National Security

Attracting and Scaling Private Capital for National Security

OSC develops and implements strategies and partnerships to
accelerate and scale private investment in critical supply chain
technologies needed for national security.

OSC develops and implements strategies and partnerships to accelerate and scale private investment in critical supply chain technologies needed for national security.

Want to stay up to date on the latest updates from OSC?

Interested in the Small Business Investment Company Critical Technology Initiative?

Attracting Private Capital to Critical Technologies and Supply Chains

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The United States is in a global competition for technological advantage. In that competition, private capital is the dominant source of funding and a key source of U.S. comparative advantage. Yet, some critical technologies and their components attract relatively little private investment and are not always supported by traditional procurement methods for national security needs.

In response, the Secretary of Defense established the Office of Strategic Capital (OSC) in December 2022 to attract and scale investment to national security priorities. OSC aims to use the United States’ comparative advantages in capital markets and economic competition to crowd in capital for the critical technology supply chains needed by the Department of Defense.

DoD’s National Defense Science and Technology Strategy specifies 14 Critical Technology Areas vital to national security. By attracting private capital investments into these Critical Technology Areas, OSC seeks to accelerate the development and deployment of technology critical to current and future warfighting capabilities.

While those Critical Technology Areas are the starting point for OSC, investment may occur outside of those Critical Technology Areas so long as it involves supply chain and component-level technologies and processes that enable DoD capabilities but are not always supported through direct procurement.

Our National Security success depends on the strength of our partners, which span the public and private sectors.

Investment Funds

Academia

Government

Our National Security success depends on the strength of our partners, which span the public and private sectors.

Investment Funds

Academia

Government

Active OSC Program Activities

Small Business Investment Company

Critical Technology Initiative

In partnership with the U.S. Small Business Administration and its Small Business Investment Company program (established in 1958), OSC supports the licensing of purpose-built Critical Technology funds that would be eligible to receive loan guarantees for early-stage investments.

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“We are in a global competition for leadership in critical technologies, and the Office of Strategic Capital will help us win that competition and build enduring national security advantages. By working with the private capital markets and by partnering with our federal colleagues, OSC will address investment gaps and add a new tool to the Department's investment toolbox."

LLOYD J. AUSTIN III

SECRETARY OF DEFENSE

“We must complement the innovative power of the private sector with a modern industrial strategy that makes strategic public investments in America’s workforce, and in strategic sectors and supply chains, especially critical and emerging technologies, such as microelectronics, advanced computing, biotechnologies, clean energy technologies, and advanced telecommunications.”

NATIONAL SECURITY STRATEGY

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“We must complement the innovative power of the private sector with a modern industrial strategy that makes strategic public investments in America’s workforce, and in strategic sectors and supply chains, especially critical and emerging technologies, such as microelectronics, advanced computing, biotechnologies, clean energy technologies, and advanced telecommunications.”

NATIONAL SECURITY STRATEGY

News & Insights

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NEWS RELEASE          Sept. 2, 2023

Department of Defense and Small Business Administration Roll Out the Small Business Investment Company Critical Technologies (SBICCT) Initiative

The Small Business Investment Company Critical Technology (SBICCT) Initiative is a joint effort between the DoD and SBA to increase private capital investment in critical technologies that strengthen U.S. economic and national security.

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NEWS RELEASE          Aug. 2, 2023

Readout of Deputy Secretary of Defense Kathleen Hicks' and SBA Administrator Isabella Casillas Guzman's Meeting With AM Forward Partners

Deputy Secretary of Defense Kathleen Hicks and U.S. Small Business Administration Administrator Isabella Casillas Guzman met yesterday at the Pentagon with executives from Lockheed Martin, General Electric, Stifel Financial, and Applied Science & Technology Research Organization (ASTRO) America to discuss President Biden’s AM Forward initiative, share perspectives on collectively advancing critical technology and manufacturing priorities vital to U.S. national security and the potential of SBA’s Small Business Investment Company (SBIC) program to help overcome those barriers.

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NEWS RELEASE          Mar. 7, 2023

Office of Strategic Capital, Small Business Administration to Sign Memorandum of Agreement

DoD’s Office of Strategic Capital and SBA’s Office of Investment and Innovation announce their intent to sign a Memorandum of Agreement on March 10 that outlines future OSC and SBA collaboration, including the SBIC Critical Technologies Initiative.

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TRANSCRIPT          Dec. 8, 2022

Deputy Secretary of Defense Dr. Kathleen H. Hicks Participates in a Fireside Chat at the 2022 Aspen Security Forum D.C. Edition

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DOD NEWS          Dec. 4, 2022

DOD Scouts Innovative Ideas from Industry, Allies, Partners

The Rapid Defense Experimentation Reserve, which was stood up last year, is a collaboration between the military services, combatant commands, industry, and coalition partners with the aim of discovering new and innovative warfighting capabilities. The Office of Strategic Capital will assist in funding companies developing technologies deemed critical to national security.

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Secretary of Defense Lloyd J. Austin III provides remarks during a virtual meeting with the leadership of 26 different military and veteran service organizations the Pentagon, May 5, 2021 (DoD photo by Chad J. McNeeley)

NEWS RELEASE          Dec. 1, 2022

Secretary of Defense Establishes Office of Strategic Capital

SECDEF establishes the Office of Strategic Capital (OSC) as a finance organization within the Department of Defense to help the United States build an enduring technological advantage by partnering with private capital providers to accelerate and scale investment in companies developing technologies critical to national security.

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DOD NEWS          Dec. 1, 2022

New Defense Office Connects Next-Gen Tech Developers with Much-Needed Capital

The Defense Department announced today the creation of the Office of Strategic Capital, or OSC. The new office is meant to ensure that technologies under development right now or in the future, which may be critical to U.S. military requirements, are able to get the funding they need to make it to market.

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Office of the Under Secretary of Defense,
Research and Engineering (OUSD(R&E))
3030 Defense Pentagon, Washington, DC 20301-3030