The U.S. Army has launched Army FUZE, a venture-capital-style acquisition program that will channel about $750 million per year into early-stage firms developing technologies for defense missions, Breaking Defense reported Monday. The initiative is designed to accelerate innovation and shorten the path from concept to field deployment.
Matt Willis, director of Army Innovation Programs, said FUZE represents a break from traditional, linear acquisition cycles, noting that the military branch is shifting its perspective to the private sector, identifying areas where commercial technology is outpacing the Army and combining its resources with venture capital to speed promising concepts into prototypes and field use.
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Army FUZE’s Channels of Investment
FUZE funding will flow through four existing programs — the xTech program, Small Business Innovation Research, the Technology Maturation Initiative, and the Manufacturing Technology office — to support nontraditional and “bleeding-edge” technology firms. Chris Manning, deputy assistant secretary for research and technology, said the new model integrates these pathways into a unified strategy to scale innovation.
Army Secretary Daniel Driscoll, who previously worked in private equity and venture capital, pushed for the new approach earlier this year. “The future of warfare will depend on speed. We will need to be able to move fast to get capabilities into the hands of our warfighters. FUZE will align funding and authorities to streamline the acquisitions process,” Driscoll said.
FUZE Technology Priorities and Competitions
The Army plans to focus initial FUZE investments on companies developing unmanned aerial systems, counter-drone technologies, electronic warfare tools and energy resiliency solutions. Rather than dictating fixed funding allocations, officials said soldier feedback and private-sector demand will guide where dollars are directed.
As part of the initiative, the Army will launch a $500,000 prize competition at the Association of the United States Army conference in October. A second prize, valued at $2.5 million and focused on counterstrike capabilities, will be held in coordination with U.S. Army Europe. Beyond these competitions, the Army expects FUZE to support prototype development, integrated capabilities and rapid manufacturing projects.
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