VC Agency Overlap Holdings Hires New Protection Tech Apply Lead

As Silicon Valley cozies as much as protection tech, some enterprise capital corporations are deepening their ties in Washington, D.C.

One agency making this push is Overlap Holdings, a New York-based enterprise agency that writes follow-on checks for early-stage frontier tech startups — constructing capital-intensive merchandise in local weather, vitality, life sciences, house, robotics, semiconductors, and materials science. It not too long ago employed Elizabeth Stockton, former particular assistant to the Undersecretary of Protection for Coverage, to steer its new protection tech advisory observe. She’ll function director of presidency options from Washington, D.C., the agency informed Enterprise Insider solely.

Stockton all the time envisioned herself changing into a public servant. “I keep in mind studying my dad and mom’ copy of the paper and being extra drawn to the worldwide part,” she informed BI.

After finding out worldwide relations at St. Andrews College, she “went from a really small group to the biggest forms on the planet” — first in operations and enterprise improvement jobs at two startups, then to the Pentagon in coverage and operations roles.

There, Stockton labored for the Assistant Secretary of Protection, guaranteeing that the US industrial base may ship capabilities warfighters want — a job she assumed solely six months after Russia invaded Ukraine. “It sort of felt just like the broader world was waking as much as how our manufacturing capability has actually shifted over the past three a long time,” she mentioned of this expertise.

Her work with each incumbent protection corporations and rising gamers reignited her curiosity within the startup ecosystem. At Overlap, she hopes to mix her D.C. and operational experience to assist startups interpret how coverage modifications have an effect on their enterprise fashions.

“The selections which can be made in Washington influence corporations day in and time out,” Stockton mentioned. “The necessity to increase our home capability throughout all these frontier expertise corporations solely stays extra pressing.”

Stockton will not be investing at Overlap. As a substitute, she’ll work with startups immediately, providing them tailor-made steering on which grants or contracts finest go well with their stage, sector, and product. She may even faucet into her D.C. community to attach startups with key authorities workers and consultants.

With a lot of the enterprise capital ecosystem centralized in Silicon Valley, many frontier tech startups typically do not know the place to begin when trying to safe a coveted authorities contract, which is usually essential to their enterprise fashions and future fundraising alternatives.

Justin Stevens, Overlap’s founder and CEO, is betting that higher alignment between frontier tech startups, the enterprise corporations that again them, and the federal businesses they depend on for contracts will result in stronger outcomes.

“This world wants that connective tissue within the center,” Stevens mentioned, “for the betterment of the frontier tech ecosystem, but in addition for the betterment of presidency and the mission and the nation.”

That is Overlap’s second advisory enterprise. The five-person agency additionally runs a capital options arm, which helps startups elevate debt for resource-heavy efforts like constructing {hardware}. It is headed by COO Rob Morelli, who beforehand led syndicate and structuring for mortgage and asset-backed merchandise at UBS.

Whereas Overlap’s models’ companies can be found to portfolio corporations, the capital and authorities options companies generate income by charging non-portfolio corporations a charge, Stevens mentioned.

To Stevens, Stockton is a “Swiss Military Knife” asset to the Overlap group.

“I noticed contained in the constructing — and out of doors as nicely — that it isn’t simply non-public market {dollars} or simply authorities {dollars} that these corporations have to be profitable and scale and develop,” Stockton mentioned. “It actually must be that collaboration, and this position actually will get to sit down at that intersection.”