The venture capital arms of Raytheon Technologies Corp. (NYSE: RTX) and Lockheed Martin Corp. (NYSE: LMT) are backing a Boston-based startup that uses 3D printing to make parts for products ranging from medical devices to fighter jets.
The startup, Fortify, has received $12.5 million in funding that includes investment from both Lockheed Martin Ventures and Raytheon's RTX Ventures in what its says is an extension of its $20 million Series B round that closed in March of 2021. It marks the first time that the two Greater Washington defense giants have invested in the same startup, according to a Lockheed spokesperson.
Fortify, founded in 2016, does a proprietary form of 3D printing called digital composite manufacturing, or DCM. For Lockheed and Raytheon, the investments in Fortify could speed development of parts used in aircraft or other military hardware, potentially alleviating supply chain stress that has been nagging defense contractors since start of the Covid-19 pandemic.
Lockheed and Raytheon "have their venture capital arms to supplement their own internal research and development,” Fortify CEO Lawrence Ganti said in an interview. “So, they're on the lookout for new things that can help broaden or make better their product pipeline. And we’re working on a number of different areas regarding antennas, missile guidance systems, radar systems that play a very important role for their future product pipeline.”
Lockheed started its venture arm in 2007 and over the years has invested more than $200 million in dozens of companies working on advanced technologies in areas like AI, quantum computing and robotics. Last year it added another $200 million to its fund.
Raytheon launched its venture arm last year.
Lockheed and RTX did not disclose the size of their investments in Fortify. In statements, representatives from Lockheed and RTX said the investments align with their strategies of finding companies developing technologies with a broad range of applications.
“We believe Fortify has the potential to deliver tailored solutions not only to the aerospace and defense industry, but a range of sectors that can benefit from their platforms,” Chris Moran, vice president and general manager of Lockheed Martin Ventures said.
“Their DCM platform aligns with our commitment to investing in cutting-edge technologies that can deliver significant value to our customers and partners,” added Daniel Ateya, the president of RTX Ventures.
With the new funds, Fortify intends to beef up its sales force and application development team, adding another seven employees to its team of 55, Ganti said. After years of prioritizing research and development, the startup is now focused on acquiring more customers, he added.
“It's more about accelerating the pie rather than trying to bake another one," Ganti said.
The company has raised just under $50 million since its founding. It took in $3.5 million in revenue last year and aims double that this year as it pushes toward commercializing its materials for the aerospace industry and other sectors.
