SVB Demise Drew Quick Response from Pentagon’s Defense Innovation Unit
When Pentagon officials received word that Silicon Valley Bank collapsed on March 10, they moved quickly to understand how the failure might affect defense startup companies and develop plans to bolster them. The Defense Innovation Unit — a Defense Department organization that works closely with non-traditional and often small companies — was concern that the vendors DIU and other Pentagon offices partner with would stop executing their programs. DIU serves as a bridge from commercial companies to the Pentagon, helping firms — including startups funded by private capital — pitch technology for military users. Prior to the government’s decision to secure the bank’s depositors, DIU sought to determine whether companies could lose intellectual property.