In Q Tel (IQT)
Technology Focus Areas (Top 4): Cyber, AI, Space & Satellite, Semi-Conductors
Series: Seed & Series A
Locations: Washington, DC
In-Q-Tel (IQT) - History and Mission
The CIA's Silicon Valley Connection
In-Q-Tel (IQT) is the CIA's nonprofit venture arm, founded in 1999 to ensure U.S. intelligence agencies have access to cutting-edge commercial technology. Operating as a 501(c)(3) strategic investment firm, IQT is funded largely by U.S. intelligence budgets and has built an impressive portfolio of roughly 800 investments over its 25+ year history.
Originally created exclusively for the CIA, IQT's mission expanded throughout the 2000s as other agencies recognized its value. The FBI joined in 2004, followed by the DIA in 2005, NRO and NSA in 2009, DHS in 2010, and even the U.S. Space Force and Office of Naval Research by 2024. Today, IQT works with over a dozen U.S. government partners spanning the entire intelligence and defense community.
The organization's core mission is bridging the gap between commercial innovation and national security needs. They scout emerging technologies in AI, cybersecurity, biotech, microelectronics, and other critical areas, then help adapt these innovations for intelligence and defense applications.
Funding Model and Investment Approach
Unlike traditional venture capital firms, IQT doesn't raise closed-end funds with specific vintages. Instead, it operates on annual appropriations from U.S. intelligence agencies, primarily CIA budgets. Based on recent IRS filings, IQT had over $1 billion in total assets and about $930 million in net assets as of 2023, with government contributions of roughly $124 million that year.
This structure allows IQT to deploy between $100-130 million annually in new investments and ongoing programs. Their deals typically fall into two categories: Technology Development Agreements (grants and contracts of about $0.5-3 million per project) and Equity Investments (minority stakes of about $0.25-0.5 million each).
IQT makes an average of 14-20 new investments per year, with deal sizes typically ranging from $1-3 million total per company. They often make multiple smaller investments in promising startups and may attach "work programs" that channel funding and expertise into specific product development initiatives.
Leadership Team
Steve Bowsher serves as CEO since September 2023, having been with IQT since 2007. He rose through the ranks from partner to president before taking the top role. Bowsher brings Silicon Valley VC experience from InterWest and E*TRADE, and has personally managed IQT relationships with major portfolio companies like Palantir, Databricks, and MongoDB.
Chris Darby led IQT as CEO from 2006-2023, transforming the organization during his 17-year tenure. Under his leadership, IQT added numerous new agency partners and expanded globally. He now serves on IQT's Board of Trustees.
The executive team includes Matt Strottman as COO, Megan Anderson as EVP of Capabilities, Liz Fox leading Marketing & Communications, and Jennifer Nelson running International programs. The organization is overseen by a prestigious Board of Trustees featuring Oracle CEO Safra Catz and former Joint Chiefs Chairman Admiral Mike Mullen, among other prominent government and industry leaders.
Media Presence and Thought Leadership
IQT maintains an active public profile despite operating in the typically secretive intelligence world. CEO Steve Bowsher regularly appears at major conferences like Stanford's "Technology + National Security" conference and participates in podcasts including Reuters' "Tech'ed Up" series.
Major media outlets like Fortune and Wired have profiled IQT's role behind successful companies like Palantir and Anduril. Fortune reported that IQT "receives around $100 million in taxpayer money per year to invest" and highlighted its crucial Silicon Valley connections for the intelligence community.
IQT executives publish thought pieces on technology and defense policy. In 2025, CEO Bowsher co-authored a Foreign Affairs op-ed arguing for a U.S. sovereign wealth fund. The organization maintains an active "Knowledge Hub" blog with regular analysis on emerging technologies, cybersecurity trends, and quarterly recaps of their activities.
Through LinkedIn, Twitter, and their website, IQT announces major milestones and engages with the broader tech and defense communities. They publicly celebrated reaching 800 total investments in 2025 and regularly share insights from their portfolio companies and government partners.
Portfolio Impact: From Palantir to the Next Big Thing
IQT's portfolio reads like a who's who of successful tech companies that serve both commercial and government markets. Their investment strategy focuses on helping startups tailor their products to government needs while navigating complex agency adoption processes.
Palantir represents IQT's most famous success story. In 2004, IQT invested about $2 million and connected Palantir's founders to intelligence customers, helping them understand prospective user needs. These early introductions were crucial to Palantir's growth trajectory, and the company went on to become a public tech giant now valued around $15 billion with intelligence and defense agencies as core clients.
MongoDB received IQT backing in 2012 when the company was still called 10gen. IQT's investment helped MongoDB tailor its scalable database platform for intelligence data needs. The company went public in 2017 and now operates in the multi-billion dollar range.
Databricks secured IQT investment in 2016 for its Apache Spark platform. IQT's backing helped validate the technology for federal use and "empower the U.S. Intelligence Community to perform critical missions." Databricks has since exploded to a $38+ billion valuation.
Anduril received IQT investment in August 2017 for its AI-driven border security drones and sensors. Since IQT's early backing, Anduril's technology has been widely deployed for U.S. border security, and the company now exceeds $14 billion in valuation while working on joint projects with other IQT alumni like Palantir.
Other notable successes include Pure Storage (flash memory storage that went public in 2015), Recorded Future (threat intelligence acquired for $780 million in 2019), and various cybersecurity, biotech, and analytics companies that have achieved significant exits or grown into major players in their sectors.
The IQT Value Proposition
What makes IQT unique isn't just the money – it's the doors they open. As Business Insider noted, "In-Q-Tel investment opens doors for tech startups because government agencies have strict security and performance requirements." An IQT investment signals that a company's technology meets intelligence community standards and has been validated for sensitive applications.
Portfolio company executives consistently praise IQT's collaborative approach. The CEO of Evident.io called IQT's involvement "critical" in aligning their product roadmap with intelligence community needs. MapD's CEO highlighted IQT's "unique insight" into federal requirements and "excellent feedback" for developing their GPU-based analytics platform.
Beyond funding, IQT provides:
Direct introductions to potential government customers
Technical guidance on meeting classified requirements
Validation that helps attract additional private investment
Ongoing support through "work programs" that fund specific development initiatives
Current Portfolio and Future Focus
Of IQT's roughly 800 total investments, many have "graduated" into independent success as alumni companies. The current active portfolio spans emerging areas like artificial intelligence, cybersecurity, biotechnology, microelectronics, and aerospace.
Recent investments include AI startups, biomedical companies, and space technology firms. In each case, IQT's role involves steering product-market fit toward national security applications and de-risking early adoption by government agencies.
IQT continues to scout for technologies that can serve dual purposes – advancing commercial innovation while meeting critical national security needs. As the technology landscape evolves, they're particularly focused on areas like machine learning, quantum computing, advanced materials, and biotechnology that could provide strategic advantages for the U.S. intelligence community.
Bridging Two Worlds
In-Q-Tel operates in a unique space, bringing Silicon Valley innovation culture to the traditionally risk-averse government sector. Over 25 years, they've proven that this model works – helping create billion-dollar companies while ensuring U.S. intelligence agencies have access to the most advanced technologies available.
Their track record speaks for itself: companies like Palantir, Databricks, MongoDB, and Anduril all received crucial early support from IQT that helped them grow into major players serving both commercial and government markets. For the startups they back, IQT provides something money alone can't buy – credibility and access in the complex world of government technology procurement.
As technology continues to evolve at breakneck speed, IQT's mission becomes increasingly important. They serve as a crucial bridge between the innovation happening in Silicon Valley and the national security challenges facing the United States, ensuring that American intelligence agencies stay ahead of the technological curve.
