Humba Ventures today announced that it has raised $40 million in investments in deep technology and defense technology startups. The company is a sister company to Susa Ventures, a seed-stage company that has backed companies such as Robinhood, Human Interest, and Flexport.
The fund was launched at a time when venture investment in defense technology is at an all-time high, with startups in the space raising nearly $3 billion through 2024, according to Crunchbase.
Sousa has previously invested in fintech and software companies, but this is very different from the hardware investments the Humba team has already made. For example, Treeswift uses robots to monitor forests, and Antares is working on nuclear microreactors.
Susa Ventures co-founder Leo Polovets (pictured above, with Anna-Sofia Lesiv on the left) is also a general partner at Humba Ventures, and adjusts how companies are evaluated when investing through Humba. He said it was necessary to do so.
When Sousa looks at fintech and BaaS companies, “we're looking for insight into distribution, go-to-market and product-market fit, because that's where most companies struggle.” he said.
“On the deep technology side, it's the other way around, and there's no question there's a demand for things like cancer treatments and cheaper energy,” Porobetz said. “The question is: Will this technology work? Is this the best team to build it?”
To launch the Defense Technology Fund, Polovets needed to approach fundraising from a different perspective. He consulted friends about whether he should accept international funding for Humba, especially if the team invests in a startup that sells to the U.S. government. The consensus was clear. That means mostly sticking to funds from the US, UK, New Zealand, Australia, and Canada.
“We have not received any funds related to China or the Middle East, for example,” he said. “We had a few LPs we were interested in, but decided it would be better to partner with other people.”
Humba will be competing in a busy space with companies like Andreessen Horowitz and Founders Fund, particularly with its American Dynamism initiative, but Polovetts sees the sister fund structure as a big selling point. He said Fumba and Sousa share resources such as discounts on software such as Karuta and marketing power. “Even if it’s a $40 million fund, I think the resources are closer to a $100 million or $150 million fund,” he said. “Both funds basically end up exceeding their total assets under management.”