Defense Tech VC Construct Capital Raises $300M Amid Geopolitical Tensions
- Construct Capital closes $300M third fund, bringing total assets under management to $ 750 M.
- The firm focuses on startups applying cutting-edge technology to manufacturing, defense, and transportation.
- The firm has invested in companies, including Hadrian, Veho, and Copia Automation.
Construct Capital has closed its third fund, securing $300 million in capital commitments to invest in startups modernizing traditional industries through technology.
The Washington, D.C.-based venture capital firm, which specializes in early-stage investments across manufacturing, transportation, and defense sectors, has now raised a total of $750 million since its founding in 2020.
The firm previously raised a $225 million second fund and a $75 million pool for later-stage companies in 2022.
Co-founders Dayna Grayson, a former NEA partner, and Rachel Holt, previously an executive at Uber, focus on companies leveraging technologies like robotics, AI, and automation to transform what they call "Foundational Industries."
The successful fundraising comes at a time when many emerging managers are struggling to secure new capital, highlighting institutional investors' growing interest in defense technology amid rising geopolitical tensions.
The firm's focus also aligns with the current administration's push for increased domestic manufacturing.
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With this latest fund, Construct plans to invest in approximately 24 companies, with check sizes ranging from $2 million to $10 million for seed to Series A rounds.
The fund was oversubscribed, with endowments and foundations making up the majority of investors.
Notable companies in Construct's portfolio include Hadrian, which uses software to manufacture parts for defense and aerospace industries, and Veho, which specializes in last-mile e-commerce delivery. Other investments include Copia Automation, Kinetic, Chef Robotics, and Vammo.
The firm emphasizes that tech-first industrial companies are growing at 19% — outpacing both traditional industrials (4%) and Big Tech (11%).
Edited by Annette George
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