LA-based Embedded Ventures launches inaugural fund, with focus on national security and space tech

Los Angeles-based Embedded Ventures closed an inaugural $100 million fund, the firm announced Tuesday, as it specifically looks to build companies in the space sector for both commercial and national security customers.

Embedded is led by general partner Jenna Bryant and latter Jordan Noon Joe moves to VC after co-founding 3D rocket printer Relativity Space, Embedded said the firm has previously made early stage investments in a half-dozen aerospace startups, including satellite communications company Aakash Systems and space data-focused Slingshot Aerospace.

But Bryant and Noone noted that those deals were funded on a case-by-case basis — with the new fund marking the next phase of Embedded’s growth.

In an interview with CNBC, Bryant said, “We have patient capital and — even if it means we have to miss out on an opportunity — that’s okay. Every company has to go through our due diligence process and it’s more thorough.” “

Embedded is focused on investing in dual-use technologies, meaning products that serve both commercial and defense customers. In 2021, Embedded signed a cooperative agreement with the US Space Force — which Noen said has served as “a very open-door conversation” between the firm and the military branch.

“Often the first look of venture investors is at new technologies,” Noone said. The purpose of the firm’s relationship with the Space Force is “how do we get in the eyes and ears of the people who are making the decisions on what to adopt, or things like congressional funding where to go.”

Nune and Bryant also said they brought on operating partner Mandy Vaughn, who most recently led the National Security subsidiary. virgin orbit and oversees the government business development side of the VC firm.

While Embedded declined to specify how much of the $100 million it raised during its first close, Noone said it was a “substantial” amount, with the raise expected to be completed by the end of the second quarter.

Building on the strength of its young portfolio, Embedded is closing its due diligence process with six new potential investments.

Noone said that none of the companies it has invested in has seen layoffs or a “down round” of valuations.