Strategic Partnership Between NightDragon and Capital Factory to Boost National Defense Innovations

NightDragon and Capital Factory: A New Era in National Defense Technology

In an era where national security challenges are evolving rapidly, the partnership between NightDragon and Capital Factory represents a pivotal step toward enhancing technological innovation for defense applications. Announced on August 18, 2025, this strategic alliance aims to foster dual-use technologies, benefiting both government and commercial sectors alike.

The Essence of the Partnership

NightDragon, an investment and advisory firm known for its focus on cybersecurity and related technologies, has joined forces with Capital Factory, the most active early-stage investor in Texas. This venture is designed to catalyze the growth of NightDragon's portfolio companies by connecting them with dual-use innovation leaders within government and industry.

Dave DeWalt, Founder and CEO of NightDragon, emphasized the importance of defense technologies in today's world: "Defense technology is no longer just a government imperative — it's a strategic national asset. It must be cultivated with the same urgency and innovation as commercial tech." This statement encapsulates the partnership's vision to accelerate the development of critical technologies that address pressing national security needs.

Strategic Objectives

The partnership will provide a full-lifecycle support model that encompasses essential capital, expertise, and market access. This model aims to empower startups focused on cybersecurity and national security at every phase of their development — from commercialization to growth and ultimate exit strategy.

Capital Factory brings a vast network of connections to entrepreneurs and defense partners, enhancing NightDragon's ability to make informed decisions about investments and support. The collaboration will enable both firms to surface emerging leaders in dual-use innovation early in the development cycle.

As companies evolve, NightDragon plans to offer growth capital and hands-on support through its NightScale platform. This initiative aims to assist founders in scaling their operations and formulating successful go-to-market strategies, thereby positioning them for sustainable growth.

Access to Networks and Resources

One of the key benefits of this partnership lies in the extensive access it offers to NightDragon's existing portfolio companies. By leveraging Capital Factory's established connections with major defense organizations and national security accelerators, portfolio companies will be better positioned to achieve government contracts and enhance their market presence — both domestically and globally.

Joshua Baer, Founder and CEO of Capital Factory, shared his vision for the collaboration: "At Capital Factory, we measure success by the number of introductions we make between entrepreneurs and the investors, customers, and talent they need to grow. NightDragon shares our passion and brings unmatched expertise in scaling mission-critical technologies." This synergy is expected to provide a comprehensive support system for startups navigating the complexities of engaging with federal partners.

A Dynamic Ecosystem

The partnership is more than just a business arrangement. Both firms have actively engaged in collaborative efforts in the past, co-investing in innovative companies like Saronic, which specializes in autonomous maritime systems. This shared commitment to innovation has manifested in joint events aimed at addressing national security challenges, including a recent dinner discussion themed "Defending the Next Horizon" held during SXSW.

Looking ahead, significant activations are planned for events like Fed Supernova in Austin, TX from August 19-21, 2025, which will create further opportunities for networking and discourse among stakeholders in national defense.

Conclusion

The strategic partnership between NightDragon and Capital Factory signifies a transformative approach toward enhancing national defense capabilities through technology. As the global landscape continues to evolve, this collaboration positions both firms at the forefront of creating innovative solutions that address the pressing security challenges of our time. Entrepreneurs and founders in the national defense sector can now look forward to stronger support systems and resources as they strive to secure not only the U.S. but also its allies around the world.

For more information about NightDragon, visit www.nightdragon.com, and to explore Capital Factory's initiatives, check out their website.