The United States Central Intelligence Agency operates one of the most secretive venture capital firms in the country. Since 2000 the VC firm, named In-Q-Tel, has made hundreds of investments in technology startups, but reveals very little about its deals. IQT never reveals how much it invests, doesn't explain how it selects companies, and sometimes doesn't reveal its investments at all, according to the Wall Street Journal.
One such CIA-backed startup that hasn't been publicly announced is Chicago-based Geofeedia, according to information obtained by The Intercept (IQT lists its public investments on its website). Geofeedia helps organizations monitor social media posts in team time, and provides its data to police departments and other law enforcement agencies. The company was in hot water last month after a report by the the American Civil Liberties Union found that Geofeedia aided police in monitoring protestors. Facebook and Twitter cut off their access to Geofeedia as a result, dealing a potentially fatal blow to the startup.
Geofeedia is one of a handful of Midwest startups the CIA has backed, including several from Chicago. While the vast majority of IQT's investments are in company's in California and Massachusetts, here are the tech startups in America's Heartland that have caught the CIA's eye.
Geofeedia (Chicago)
Geofeedia helps organizations analyze social media posts in real-time. It works with news organizations like CNN, BBC and Fox Sports, but came under fire recently for helping law enforcement organizations monitor the social media accounts of protestors. The startup has raised more than $23 million since it launched in 2011.
Narrative Science (Chicago)
Artificial intelligence startup Narrative Science began by generating game recap stories from baseball box scores. But the Chicago company has shown it's capable of much more than robot journalism with its investment from IQT, which presumably has used Narrative Science to turn large amounts of data into written, digestible bits of information. In a 2013 press release announcing the investment, ITQ said Narrative Science will develop a version of its patented Artificial Intelligence engine for IQT’s government customers to "help enhance understanding, analysis, and communication of data."
Cleversafe (Chicago)
Chicago-based data storage company Cleversafe got an investment from IQT back in 2010. IQT called Cleversafe's platform "ideal for storing mission critical data" and it "secures the confidentiality of data by transforming it to be inherently secure." Cleversafe was acquired by IBM in 2015 for $1.3 billion.
"We are confident [Cleversafe] will give our customers in the U.S. Intelligence Community a robust distributed storage solution that provides the levels of unmatched reliability they require," William Strecker, Executive Vice President of Architecture & Engineering and CTO at IQT, said in a statement in 2010.
Initiate Systems (Chicago)
Founded in 1994, Initiate Systems is a software company that lets companies leverage and share critical data assets. It has worked with healthcare companies by letting medical providers and insurance companies coordinate data from different computer systems. The company raised $31 million in finding and was acquired by IBM in 2010.
"...we invested in Initiate Systems because their innovative software is the most accurate, high performance, scalable and non-intrusive and they have a proven track record of rapid deployment with a large number of commercial enterprises," Amit Yoran, president and CEO of In-Q-Tel, said when IQT invested in Infinite Systems in 2006.
Epiq Solutions (Schaumburg, IL)
According to The Intercept, IQT has invested in Schaumburg-based Epiq Solutions, a company that develops radio platforms and applications. It's flagship product, the Sidekiq, is a small software defined radio (SDR) transceiver solution that transforms laptops, tablets and desktop computers into "RF processing powerhouses."
Advanced Photonix (Ann Arbor, MI)
In 2010, IQT made an investment in Advanced Photonix, a supplier of optoelectronic sensors, devices and instruments used by a range of organizations and industries including Homeland Security. In 2015 the company merged with Luna Innovations, which makes fiber-optic sensing and test and measurement products.
NovoDynamics (Ann Arbor, MI)
Ann Arbor-based data analytics company NovoDynamics twice got an investment from IQT in 2003 and 2007. The company turns scanned documents and images into usable data for businesses. NovoDynamics can scan a document in a different language and alphabet, like Arabic or Chinese, and translate that information into english. In 2007 NovoDynamics entered into a "multi-million dollar strategic investment and technology advancement agreement" with IQT.
Alfalight (Madison, WI)
Madison-based Alfalight received an investment from IQT in 2011. The company designs and manufactures advanced, integrated laser and electro-optical systems for defense and aerospace companies. In 2014 Alfalight was awarded a $3.7 million contract to provide its lasers to a U.S. defense subcontractor working on a high-level missile defense system. The company was acquired this year by Gooch & Housego, an England-based company that manufactures photonics systems and other equipment for the aerospace and defense industries.
Infobionics (Eagan, MN)
Minnesota-based Infobionics, a Data-mining software company, got an investment from IQT in 2006. It helps companies store, extract, and analyze data. The company's Cellular Database Management System allows businesses to perform quick and easy data analysis. It was founded in 2000 and raised a total of $7 million.
Destineer (Eden Prairie, MN)
Video game developer Destineer, another Minnesota tech company, received an investment from IQT in 2005. The company was one of the world’s 25 largest publishers of packaged video games before it closed in 2011. Its games included hunting game Buck Fever, Harley Davidson Road Trip, and Close Combat: First to Fight, which was created to help active-duty United States Marines. The IQT investment allowed it to expand its work with the federal government.
Intelliseek (Cincinnati, OH)
Cincinnati-based Intelliseek was funded by IQT in 2001, making it one of the first startups to receive an investment from the CIA. The company launched as a marketing intelligence firm that measured and analyzed online consumer opinions, and tracked online blogs and internet forums. The company was acquired by Nielsen Buzzmetrics in 2006.
