Shield Capital
Technology Focus Areas (Top 3): Space & Satellite; Autonomy; AI, Cyber
Series: Seed, Series A
Locations: Silicon Valley, CA
Shield Capital: History, Funding, and Impact
Mission-Driven Defense Investing
Shield Capital launched in 2021 with a clear mission: invest in "frontier technologies" that serve both commercial markets and national security needs. Co-founders Philip Bilden and Raj Shah established the firm to back innovators working on artificial intelligence, autonomy, cybersecurity, and space technologies - all critical areas for defense and dual-use applications.
What sets Shield apart is their explicit focus on companies at the "nexus of commercial industry and national security." Their investment thesis centers on the idea that dual-use companies can scale faster by leveraging government as an early customer, providing a stable revenue source even in volatile market conditions.
The firm's mantra "Mission Matters" isn't just marketing speak - it reflects their genuine commitment to backing technologies that "secure the future" while maintaining close alignment with U.S. national security priorities. This philosophy has led them to forge strategic partnerships, most notably with defense prime contractor L3Harris, designed to accelerate their portfolio companies' access to defense markets.
Building a Defense-Focused Fund
Shield Capital's inaugural fund tells a story of strong investor confidence in defense tech. Initially targeting $120 million, the fund reached about $125 million at first close in early 2022. But investor appetite proved stronger than expected - by October 2023, Shield held their final close at $186 million, oversubscribed by 55% above their original goal.
This $186 million Fund I focuses on early-stage investments from Seed to Series A, with typical check sizes ranging from $2 million to $8 million. Shield generally leads or co-leads financing rounds, reflecting their hands-on approach to supporting startups.
The successful fundraise was notable for several reasons. As co-founder Philip Bilden highlighted, Shield raised "four times more than a typical first-time fund" by attracting a diverse base of institutional and private investors, including endowments, pension funds, insurance companies, and strategic partners.
By late 2023, Shield had deployed capital across nearly 30 startups in their target domains. The oversubscribed fund gives them ammunition to continue backing additional founders while providing even greater support to their existing portfolio companies.
The Team Behind the Mission
Shield Capital's leadership team brings together venture investment expertise with high-level military and technology backgrounds - a combination that's essential for navigating the defense tech ecosystem.
Philip Bilden serves as Managing Partner, bringing heavyweight private equity experience from co-founding HarbourVest Partners, a global private equity firm. But his defense sector credentials are equally impressive - he's served as a Director on the board of Huntington Ingalls Industries (the major U.S. shipbuilder), Chairman of the Naval War College Foundation, and as an advisor on the Navy's executive panel.
Raj Shah, the other Managing Partner, represents the perfect bridge between Silicon Valley and the Pentagon. A former U.S. Air Force F-16 pilot, Shah led the Pentagon's Defense Innovation Unit Experimental (DIUx) from 2016-2018, where he worked to accelerate military adoption of commercial technologies. His entrepreneurial background includes founding cybersecurity startup Morta Security (acquired by Palo Alto Networks) and co-founding cyber insurance firm Resilience, where he serves as Chairman.
In 2022, Shield added serious firepower with Michael A. Brown as Partner. Brown succeeded Shah as Director of the Defense Innovation Unit (DIU) and brings distinguished tech executive experience as former CEO of Symantec and Quantum Corporation. His deep knowledge of defense acquisition processes and public-private tech initiatives significantly strengthens Shield's ability to navigate DoD innovation pipelines.
Another Partner, John Serafini, joined after serving as CEO and co-founder of HawkEye 360, one of Shield's notable portfolio companies. Serafini previously incubated multiple national security startups in satellite analytics, cybersecurity, and spectrum sharing, bringing both U.S. Army background and hands-on startup experience.
The team also includes Operating Partner Pat O'Reilly (retired U.S. Army Major General who led the Missile Defense Agency) and Venture Partners like John "JJ" Jack (former CEO of multiple cybersecurity firms) and Ray Rothrock (veteran venture capitalist and cyber expert).
Perhaps most impressively, Shield benefits from a National Security Advisory Board featuring former top defense leaders including retired Gen. David Goldfein (21st U.S. Air Force Chief of Staff) and former National Security Advisor Lt. Gen. H.R. McMaster. This constellation of experienced investors, ex-military officers, and technologists enables Shield to credibly support startups working on cutting-edge defense technologies.
Portfolio Winners and Strategic Impact
Shield's portfolio spans over 30 companies, with several standout successes demonstrating the firm's thesis in action:
HawkEye 360 represents one of Shield's most significant wins. This radio-frequency satellite analytics company, co-founded by Shield partner John Serafini, has become the market leader in space-based RF geointelligence. Shield invested by HawkEye's Series B round and participated in the company's $145 million Series D in 2021, which brought total capital raised to $302 million. HawkEye 360 is now regarded as "the undisputed global champion in radio frequency analysis" in the space sector, serving both government defense/intel customers and commercial applications.
Overwatch Imaging showcases Shield's hands-on approach. The firm co-led Overwatch's $11.15 million funding round in 2022 alongside Squadra Ventures and strategic co-investors like L3Harris. This Oregon-based startup builds AI-enabled airborne imaging systems for drones and aircraft, supporting both defense missions (intelligence, surveillance, reconnaissance) and civilian applications like wildfire mapping and search & rescue. Shield's Raj Shah joined Overwatch's board, and the L3Harris partnership likely facilitated defense market access. Today, Overwatch's systems are deployed on U.S. and allied platforms worldwide.
Resilience demonstrates the dual-use investment thesis. This cybersecurity insurance and risk-management startup was co-founded by Raj Shah, who serves as Executive Chairman. Shield's investment and mentorship helped Resilience expand its offerings and client base, including an $80M+ Series C in 2022. The company addresses cyber risk for enterprises - critical for both commercial industry and defense contractors concerned with national security-related cyber threats.
Apex shows Shield's ability to partner with top-tier VCs. Shield co-led Apex's Series A round in 2023 alongside Andreessen Horowitz. This space technology company builds satellite buses (standardized satellite platforms) for both commercial satellite constellations and government space missions. The Shield-a16z co-investment underlines Shield's strategy of teaming with elite VCs to amplify their portfolio companies' reach and resources.
The portfolio includes other notable companies like Albedo (ultra-high-resolution imaging satellites), Elroy Air (autonomous cargo drones), Vannevar Labs (AI for defense intel), and GoSecure (cyber defense). Many have achieved significant milestones - Elroy Air secured U.S. Air Force contracts, Vannevar Labs won DoD software contracts, and Vannevar raised a $75M Series B led by Felicis and Costanoa in 2022.
Shield has already seen their first exit with Xeol, a cybersecurity startup tackling end-of-life software vulnerabilities. Shield invested in Xeol's seed round, and in February 2025 the company was acquired by HeroDevs, demonstrating early returns and validation of their dual-use cyber thesis.
Strategic Partnerships That Matter
Shield's partnership with L3Harris exemplifies their value-add approach beyond just writing checks. Through this strategic relationship, Shield's portfolio companies have "teamed with L3Harris and won significant revenue contracts," providing them competitive advantages in selling to government customers. This partnership shortens the path from startup to DoD adoption by integrating promising technologies with a major defense contractor's established programs.
The firm's highly hands-on approach focuses on being "very founder focused," offering help with executive recruiting, strategy development, and navigating government sales channels. They leverage their deep defense network to help young companies secure pilots, contracts, and key hires in the national security arena.
Thought Leadership and Industry Influence
Despite being relatively new, Shield Capital has built significant influence through media appearances and original content. The team regularly speaks at industry events - for example, Shield Principal David Rothzeid joined panels at the Defense One Tech Summit 2025 discussing "the changing tides of defense tech investing."
Partner Michael Brown has become a prominent voice through articles in prestigious outlets. He authored "The Empty Arsenal of Democracy: How America Can Build a New Defense Industrial Base" in Foreign Affairs and wrote for Forbes about the DoD's "hedge strategy" to amplify commercial tech in defense. David Rothzeid co-authored commentary on War on the Rocks about reforming DoD software acquisition, drawing on Shield's dual-use contracting expertise.
Managing Partner Raj Shah has co-written a forthcoming book "Unit X" about the Pentagon's relationship with Silicon Valley and regularly appears in media interviews discussing defense sector trends.
Shield also produces their own "Mission Matters" podcast in 2025, hosting conversations with founders and defense officials about technology and security challenges. Through their Shield Newsroom, they curate content and share portfolio updates, amplifying their mission and companies' successes to a broader audience.
Looking Forward
Shield Capital's short but impactful history demonstrates the potential for mission-driven defense investing. Their oversubscribed $186 million debut fund, experienced team combining finance and national security expertise, and hands-on approach to supporting startups has already yielded tangible results.
The firm's portfolio companies have secured major contracts, raised substantial follow-on funding, and in some cases achieved exits - all while addressing critical defense challenges. Their strategic partnership with L3Harris and ability to co-invest alongside top-tier VCs like Andreessen Horowitz shows they're building bridges between Silicon Valley innovation and defense establishment needs.
As a focused defense-centric VC, Shield Capital has quickly become an influential catalyst for the next generation of U.S. dual-use tech startups. Their wide network, mission-driven ethos, and "Mission Matters" philosophy positions them well to continue helping these companies succeed on both commercial and national security fronts.
