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The Future of Frontier Technology
2025 Report
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.