The Future of Frontier Technology
2025 Report

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Key Takeaways

Although frontier technology is hardware-intensive and therefore exposed to tariff-fueled supply chain disruptions, the sector is booming. The age of agentic AI is increasing demand for compute. Governments are embracing VC-backed technology for defense tech innovations. And industrial automation is accelerating. These trends are driving growth as the sector brings sci-fi-like technologies closer to reality.

1/3 Of fundraising dollars went to hardware-focused VC funds.

That represents the highest share in a decade, up from 20% in 2021.

47% Increase in frontier tech VC investment year-over-year.

Frontier tech had its second-best year ever, propelled by multiple tailwinds.

>50% Of frontier tech unicorns have raised funding in the last two years.

Only 28% of all other unicorns have done the same.