Defense Tech and ‘Physical AI’ Take Center Stage at StrictlyVC Los Angeles
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The Pivot Toward Hard Tech
The center of gravity for venture capital is shifting. While the last decade was defined by the scalability of SaaS and consumer apps, the current momentum is moving toward what investors are calling ‘hard tech’—the intersection of software, physical engineering, and national security. This shift will be the focal point of the upcoming StrictlyVC Los Angeles event on June 18, hosted at The Aerospace Corporation Campus in El Segundo.
The location itself is a signal. By moving the gathering to the heart of Southern California’s aerospace and defense hub, the event underscores a broader trend: venture capital is no longer just about the cloud. It is about the chassis, the drone, and the satellite. For the founders and investors attending, the goal is to dissect how capital is being deployed into industries that were previously seen as too slow or too regulated for the typical VC playbook.
Redefining the Defense Industrial Base
A primary anchor for the evening is Ethan Thornton, founder of Mach Industries. In a session titled “Built for a New Era of Defense Technology,” Thornton is expected to challenge the traditional perception of defense contracting. For decades, the defense sector was characterized by glacial procurement cycles and legacy incumbents. However, a new generation of ‘defense-native’ startups is leveraging autonomy and rapid manufacturing to move at a speed that mimics Silicon Valley software cycles.
The conversation around Mach Industries and similar ventures points to a structural shift in how national security is viewed as a market. It is no longer just about government grants; it is about building venture-backed companies that can iterate on hardware in real-time, integrating AI-driven autonomy into physical weapon systems and logistics networks.
The Rise of ‘Physical AI’
Beyond defense, the event will tackle the emerging category of ‘Physical AI.’ While the world has spent the last two years obsessed with Large Language Models (LLMs) and generative chatbots, the next frontier is the application of that intelligence to the physical world. This transition from digital screens to robotic actuation is a high-risk, high-reward gamble for the venture community.
Delian Asparouhov of Founders Fund and Saif Khawaja of Shinkei Systems will lead a discussion on the mechanics of this transition. Founders Fund has been vocal about its appetite for moonshot technologies, and the focus on physical AI suggests a belief that the ‘intelligence’ layer is finally mature enough to drive meaningful breakthroughs in robotics and automation.
The challenge, as Khawaja and Asparouhov are likely to address, is the ‘deployment gap.’ Moving a breakthrough from a controlled lab environment to a scaled, real-world operation involves hurdles that software-only companies never face: supply chain volatility, regulatory hurdles, and the unforgiving laws of physics. The dialogue will likely center on how to bridge this gap without burning through capital at an unsustainable rate.
The Value of Proximity
In an era of virtual pitches and Zoom-based due diligence, the StrictlyVC gathering emphasizes the enduring value of high-signal, in-person networking. The event is designed as an intimate forum, prioritizing depth of conversation over the scale of the audience. For executives and founders, the real utility lies in the ‘off-stage’ interactions—the informal exchange of insights between those managing the funds and those building the hardware.
As the agenda continues to evolve, the event stands as a barometer for where the ‘smart money’ is moving in 2026. Between the strategic focus on defense and the push toward physical AI, the narrative is clear: the next wave of unicorn companies will likely be those that can successfully merge the agility of software with the permanence of hardware.
