The next era of defence technology
Digital Content Editor, Eve Goode speaks exclusively with Jennifer Nelson, Executive Vice President, International of IQT about accelerating technologies for national security. Can you tell me about your job role at IQT and the role the company plays in the current security industry? For the past 17 years, I’ve had the privilege of contributing to IQT’s mission at the intersection of national security and innovation. Today, I lead efforts that help accelerate the adoption of cutting‐edge technologies across the US and our allied partners to ensure that government customers can access, evaluate and deploy the innovations they need to stay ahead of emerging threats. In this role, I execute IQT’s global investment platform and work closely with partners across government and industry to identify high-potential technologies and ensure they transition rapidly and securely into real-world use. Building trusted international relationships is central to that work, alongside expanding IQT’s global footprint. This has included strengthening our presence in London and Sydney, launching new offices in Munich and Singapore, and supporting portfolio companies across more than 20 countries. At its core, IQT operates at the intersection of venture capital, government and the startup ecosystem. As an independent, not-for-profit strategic investor, we bridge the gap between commercial innovation and mission-critical government needs. In a security environment increasingly shaped by geopolitical complexity and rapid technological change, that role is more crucial than ever. By anticipating emerging threats and investing in frontier technologies globally, we help ensure innovation is not only discovered but translated into real-world capabilities and advantages for our national security partners and their allies. Where do you see the biggest investment opportunities in quantum currently? Quantum remains an emerging field, but it is already becoming strategically important with clear signal of the priority, such as the UK’s £500 million commitment. We are now moving from theory toward early‐stage applications and that transition is beginning to shape where both venture and government can have impact. For venture investors, the most compelling near‐term opportunities are in the core technologies that enable the field’s progression, such as cryogenics, control electronics, lasers, materials and early error‐correction infrastructure. Looking further ahead, there is also potential in products across areas like materials science or biotech, where quantum may eventually provide a meaningful advantage. Government investment plays a different role: helping create demand and validate early capabilities. That includes funding application exploration, purchasing access to early systems so developers are incentivised to deploy them and supporting strategic areas like secure communications, sensing and post‐quantum cryptography. It will take investment to support the transition of promising technology to one that can be deployed for national security priorities. We are at an inflection point where quantum is beginning to converge with other frontier technologies, especially AI. These technologies are no longer evolving separately but are compounding and can fundamentally reshape security infrastructure. How do you separate meaningful AI capability from hype in defence use cases? In defence, the distinction between meaningful AI and hype comes down to whether the technology can perform reliably in real operational environments. At IQT, we take a mission‐driven, pragmatic view focused on three core factors. First, the underlying architecture must be built for real‐world conditions. The most effective systems combine lightweight, edge‐deployed models with more advanced centralised models that support deeper reasoning. Their value lies in how well they can process multimodal data, video, audio, signals and translate that into actions systems can execute consistently, even in complex or degraded environments. Second, the technology must be deployable within existing platforms and infrastructure. Defence systems often operate for decades, and only a small subset can be redesigned to be “AI‐native.” The real question is whether a capability can integrate into today’s workflows and operate securely within distributed, resource‐constrained environments. Many impressive demos fail at this step, and the ability to deploy is often the strongest indicator of lasting value. Finally, AI used in defence must be explainable and auditable. Operators need visibility into why a system reached a conclusion, particularly for tasks like prioritisation or classification. Taken together, these criteria help separate technologies that can support real missions from those that are still maturing. Meaningful AI in defence is defined not by novelty, but by performance, integration and accountability. Why is advanced manufacturing becoming critical for defence and resilience? The growing importance of advanced manufacturing reflects its central role in both defence capability and national resilience. As supply chains become more contested and global competition intensifies, the ability to rapidly design and reliably produce systems is becoming a critical strategic advantage. At the same time, the nature of conflict is evolving. Recent conflicts have shown that militaries need to produce high volumes of low-cost systems and quickly adapt them to changing battlefield conditions. This is driving demand for more agile and distributed manufacturing approaches that can operate even when supply chains are disrupted or degraded. The role of advanced materials is also becoming more significant. New materials are beginning to reshape supply chains, platforms and overall resilience, particularly in environments where access to critical inputs cannot be guaranteed. In this context, advanced manufacturing technologies are playing an increasingly important role. AI-enabled tools are helping accelerate design and production, while field-deployable systems enable on-site manufacturing and repair, reducing reliance on complex logistics. Ultimately, advanced manufacturing is becoming critical as it enables speed, adaptability and resilience in an increasingly complex and contested security environments. Why does the government need private sector investment and support in order to thrive in defence tech? Government and the private sector play complementary roles in advancing defence technology and that partnership has become increasingly important as innovation has shifted toward the commercial ecosystem. Many of today’s cutting-edge technologies are being developed by startups and private companies, often moving at a pace that traditional systems were not designed to match. IQT was founded to help bridge that gap. As an independent, not-for-profit strategic investor, we connect government partners with emerging technologies and provide early insight into innovation that may not yet be visible through traditional channels. This allows governments to better anticipate future needs and access capabilities earlier in their development. At the same time, we support startups in navigating the complexities of working with government, helping them translate their technologies into solutions that can be deployed in national security environments. This two-way connection is critical; it ensures that innovation developed in the private sector can be effectively integrated into mission driven use cases. Ultimately, thriving in defence tech today depends on strong collaboration. By working closely with trusted partners across the private sector, governments can stay connected to the forefront of innovation while ensuring those technologies are applied in ways that deliver real operational value. What is one thing you wish more people understood about building or investing in defence tech? Building and investing in defence technology means operating at the intersection of three very different worlds: government, start-ups and investors and truly understanding the dynamics of each. The commercial innovation ecosystem moves fast, optimising for speed and scale, government operates on mission requirements, security constraints and long-term reliability, while investors focus on sustainable growth and returns. Bringing these perspectives together is where the real complexity and opportunity lie. This is central to IQT’s model, which depends on navigating those differences with precision and trust. Much of today’s most advanced technology originates in the private sector, particularly from start-ups. Identifying promising capabilities is only the beginning. The real work happens in adapting those technologies so they can be deployed confidently in national security environments where stakes are high, conditions are unpredictable and performance must be dependable. That process requires more than capital: it demands a deep understanding of mission needs, technical maturity, integration pathways and the operational realities customers face. For startups and investors, the opportunities are significant. Those able to navigate government engagement thoughtfully can build impactful, durable companies while contributing directly to national security outcomes. However, success requires patience, partnership and a commitment to aligning innovation with real mission impact, not just commercial promise. Ultimately, defence tech is about closing the gap between innovation and application. The companies that succeed are the ones that not only build extraordinary technology, but also ensure it can be trusted, adopted and used where it matters most.
Source: internationalsecurityjournal.com