Army Pairs $750 Million With Private Capital for Tech

Army FUZE directs about $750 million a year toward technology programs. It makes smaller investments to develop prototypes and scale efforts that work, while also partnering with domestic and international venture-capital and private-capital firms to help companies access cheaper capital, according to Dr. Matt Willis, Director of Army FUZE.

Public Funding, Private Capital

Hon. Dan Driscoll established Army FUZE about a year before the October 2026 interview, when he was Secretary of the Army, Willis said. The program aims to make acquisition and innovation more deliberate and agile, and to take more risk. It divides investments among several programs, most focused on maturing prototypes.

Willis drew a distinction between Army FUZE and a traditional venture fund: the program seeks technical returns, not financial returns. Its FUZE capital integration team has built partnerships with domestic and international venture-capital and private-capital firms. The team aims to combine Army and private investment and help companies in its ecosystem access cheaper capital.

Army FUZE sits within the acquisition enterprise and the Office of the Army Acquisition Executive. It works with portfolio acquisition executives and capability portfolio executives to scale technologies the Army considers promising. The program also serves as the capital engine behind the Army Pathway for Innovation and Technology, or Army PIT, which stood up about 10 months before the interview.

From Prototype to Soldier

The program aims to move an idea into soldiers’ hands faster. Willis said deployment could take weeks or months, rather than the decades and hundreds of millions of dollars tied to some traditional acquisition programs.

Army FUZE brings together programs that once had separate application processes and entry points. Its xTech program seeks to lower barriers for businesses new to government work, using a simple application process and non-dilutive cash prizes that can offset participation costs at exercises.

The Army has redirected its Small Business Innovation Research/Small Business Technology Transfer program toward prototype development. Awards typically top out around $2 million, though new flexibilities allow larger awards. The program targets capabilities that can nominally reach soldiers in 18 to 24 to 36 months.

The portfolio also includes a Technology Maturation Initiative for larger prototyping awards and a Manufacturing Technology program focused on supply chains, manufacturability and cost-conscious development. Most calls for proposals now run two to five pages, not 50-page manuscripts.

Army PIT connects FUZE funding and acquisition program management with four deployed acquisition officers at the ASCCs, including U.S. Army Europe-Africa and U.S. Army Pacific, and at the tactical level at 18th Airborne Corps, I Corps and III Corps. Willis said this setup gives the Army technical priorities straight from commanders.

Field Testing and Selection

Soldier feedback runs through the Army FUZE lifecycle, Willis said. Operational assessments put equipment in soldiers’ hands, sometimes with the vendor present, and send feedback to the vendor about the technology, interface or use. Early involvement helps identify whether capabilities work as advertised and helps companies adapt, Willis said.

A 100% transition rate would mean the Army wasn't taking enough risks or pushing at the edge of technology, Willis said. Companies that can adapt their technology, integrate it with other capabilities and support plug-and-play or layered solutions fit the Army’s needs better than companies operating closed systems.

Operation Jailbreak began with a specific problem facing forward-deployed soldiers. The secretary at the time called for a capability in theater in 10 days. Army FUZE and Army PIT issued a solicitation, heard pitches, selected companies and put them under contract within 128 hours. The capabilities were tested at Aberdeen Proving Ground, then deployed to CENTCOM.