July 31, 2024

Intelligence on intelligence

Hi there,

In-Q-Tel’s portfolio is a crystal ball for the US’ next-gen tech priorities.

The non-profit strategic intelligence & defense investor helps government partners like the CIA, NSA, and FBI implement tech.

It’s backed 50+ deals since 2022, with many in cutting-edge technologies.

We mined the data to find where the global security investor is investing to enhance the national security of the US and its allies.

Here are a few key takeaways:

IQT is heavily investing in aerospace, backing at least 8 companies in the space since Q2’22. That includes 2 rounds to Stoke Space, which develops reusable rockets.
Quantum technology is a priority for IQT as China ramps up investment.
IQT has funded a variety of biotech solutions in recent years — including “de-extinction” tech.
As AI adoption grows, so do security concerns. IQT is backing startups focused on protecting AI models and applications.

You can download the full investment map here.

High jump

AI funding jumped 59% QoQ to the highest quarterly level on record in Q2'24.

Nope, not a typo.

AI startups drew $23.2B in Q2’24, surpassing their previous quarterly record of $23B (Q2’21).

For comparison, broader venture funding in Q2’24 was down 59% from its level in Q2’21.

AI’s exceptional quarter was fueled by massive rounds to a handful of startups, including a $6B Series B to Elon Musk’s xAI.

Discover the other deals fueling the AI boom in our State of AI Q2’24 Report.

Green means go

Green ammonia, or ammonia produced using renewable energy, could play a key role in industrial decarbonization efforts.

Two emerging technologies in the space are grabbing investor attention:

Ammonia cracking — converts ammonia into hydrogen, making it usable as fuel in engines or fuel cells
Advanced alkaline electrolyzers — used in the production of green ammonia

Corporate venture arms like Shell Ventures, Chevron Technology Ventures, and ENGIE New Ventures have all backed companies in the space.

Big tech is also getting involved. Amazon’s The Climate Pledge fund invested in Sunfire’s Series E round to expand its electrolyzer production, as highlighted by CBI’s instant insights.

We look at what’s driving momentum and the companies to watch in this brief.

Hospitals best prepared for AI

Four of the health systems on our hospital AI readiness index have launched AI-enabled products.

Last year, Intermountain Health developed a platform equipped with real-time clinical decision support tools that leverage AI to improve patient diagnosis and treatment.

Just a few months ago, CommonSpirit Health launched Insightli, an internal AI assistant capable of generating written content.

See more on health system innovation with the full ranking here.

I love you.

Anand

@asanwal

P.S. We’re hiring for software engineers. Check out the roles here.

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