Defense Tech and ‘Physical AI’ Take Center Stage at StrictlyVC Los Angeles
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The Convergence of Hard Tech and Venture Capital
The intersection of national security and venture capital is shifting from the fringes of the investment world to its center. On June 18, the Aerospace Corporation Campus in El Segundo will serve as the backdrop for StrictlyVC Los Angeles, an event designed to peel back the curtain on the high-stakes world of defense technology and ‘physical AI.’
For years, Silicon Valley’s primary output was software—scalable, weightless, and rapidly deployed. However, a new wave of ‘hard tech’ is emerging, characterized by tangible products that operate in the physical world, from autonomous drones to advanced robotics. This shift is not just a technical evolution but a strategic one, as the U.S. defense industrial base seeks to modernize its procurement and innovation cycles to keep pace with global adversaries.
Engineering Speed in Defense
One of the evening’s primary focuses will be the challenges of scaling hard tech. Ethan Thornton, founder of Mach Industries, will lead a session titled “Built for a New Era of Defense Technology.” Thornton’s perspective arrives at a critical moment for the industry; the defense sector is currently grappling with a transition from legacy hardware—often developed over decades—to agile, iterative prototyping.
The conversation is expected to touch on how advances in autonomy and additive manufacturing are allowing startups to bypass traditional bureaucratic bottlenecks. For founders in this space, the hurdle is no longer just the engineering, but the ability to navigate the complex procurement requirements of the Department of Defense while maintaining the speed of a venture-backed startup.
Moving AI Beyond the Screen
While Large Language Models (LLMs) have dominated the AI conversation for the past two years, the industry is now pivoting toward what organizers are calling ‘Physical AI.’ Delian Asparouhov of Founders Fund and Saif Khawaja of Shinkei Systems are slated to discuss how AI is finally breaking out of the browser and into robotics and automation.
This transition represents a significant leap in complexity. Unlike software AI, which operates in a controlled digital environment, physical AI must contend with the unpredictability of the real world—friction, gravity, and environmental chaos. The discussion will likely explore how the synergy between sophisticated neural networks and advanced robotics is creating new opportunities for industrial automation, potentially disrupting everything from logistics to precision manufacturing.
The Search for Durable Innovation
Amidst the excitement surrounding AI, venture capitalists are also wrestling with the ‘hype cycle.’ Carter Reum, co-founder and partner at M13, will address the challenge of “Finding the Next Big Thing” in an era where AI-driven valuations can often outpace actual utility.
Reum’s session is expected to analyze the movement away from short-term growth hacks toward ‘long-term durability.’ As the market matures, investors are increasingly scrutinizing the unit economics of AI companies, seeking those that provide a sustainable competitive advantage rather than those simply wrapping a third-party API in a new user interface. This pivot toward fundamental value suggests that the ‘AI bubble’ may be evolving into a more disciplined era of application and integration.
The event aims to provide a curated environment where the founders building these systems and the investors funding them can align on the trajectory of the industry. With the Aerospace Corporation’s campus providing a fittingly industrial setting, the gathering underscores the growing importance of the ‘Silicon Beach’ ecosystem in the broader national security and deep-tech landscape.
