Pitch Me: will the shift to defence spending move funds out of climate tech?
Why Ally LaTourelle Whitney, Founder of the Government Affairs Accelerator, Thinks the Future of Climate Tech Might Be Connected to National Security
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Why the Future of Climate Tech Might Be Connected to National Security
“I wish someone had told me sooner that it's okay to chart a non-linear path—and that hybrid expertise is a strength, not a detour,” says Ally LaTourelle Whitney. “For years, I operated in spaces that didn’t quite "fit" together: law, investment, government, science. But over time, I realized that the ability to translate across silos—legal, technical, financial, and political—was not just useful; it was essential for unlocking capital and influence for emerging industries.”
Today, Ally LaTourelle Whitney is the Founder of the Government Affairs Accelerator and sits on the Advisory Board for AI Infrastructure at America 2030, a $50 million growth-stage fund launched by IPO CLUB. Its investment thesis is bold and sharply relevant: back late-stage companies developing dual-use technologies across defence, climate, AI, and infrastructure—particularly those that strengthen national security while advancing environmental resilience.
Early on in her career, Ally realised that innovative technologies often struggled - not because they lacked technical merit - but because they couldn’t access the right capital or navigate complex regulatory landscapes. In climate finance, she saw the opportunity to create systems-level impact: “I wanted to bridge that gap—leveraging public policy and strategic finance to accelerate climate solutions and help transformative ideas scale in real-world markets.”
But today, green techpreneurs are building against a backdrop of global rearmament. In 2023, the U.S. passed a record-setting $858 billion defence budget. Germany just pledged €500 billion to overhaul its military and infrastructure. Japan approved the largest defence budget in its postwar history. Meanwhile, NATO members are collectively increasing spending, with many redirecting industrial capacity toward security and technological sovereignty.
That’s raised alarms in climate circles. Are investors pivoting from green to guns? Is defence sucking the oxygen—and capital—out of climate tech?
Ally doesn’t buy the zero-sum thinking. “While defence tech is gaining momentum, I don't believe it's cannibalising climate tech funding. What we're seeing is more of a diversification of portfolios, not full redirection.”
In fact, she believes that some dual-use technologies born from defence R&D —such as advanced battery systems, energy-efficient power storage, lightweight biobased sustainable materials and biofuels —not only have clear applications in climate tech, but could be spurred on to commercial scale by increased demand from government defence contracts: “Lightweight composites, autonomous systems, low-emission fuels—these aren’t just ‘military tech.’ They’re also the building blocks of sustainable infrastructure,” says Ally.
How do you see the recent surge in defence tech investment affecting funding for climate tech?
While defence tech is gaining momentum, I don't believe it's cannibalizing climate tech funding. What we're seeing is more of a diversification of portfolios, not full redirection. In fact, some dual-use technologies born from defense R&D —such as advanced battery systems, energy-efficient power storage, lightweight biobased sustainable materials and biofuels —have clear applications in climate tech. And can in fact be spurred on to commercial scale by demand increases due to government defense contracts.
Do you think we will see a redirection of funds from climate to defence?
They can absolutely coexist. Defence tech is green (light weight, electric, re-usable, dual use), when compared with legacy defence systems. Many defence innovations now overlap with climate-positive outcomes. Consider field-deployable solar panels or autonomous drones designed to reduce fuel-heavy operations. These are defence-first but climate-supportive.
There's also growing awareness that national security includes climate resilience, energy efficiency, using biobased materials like nylon, drone technologies for transport of medical supplies and even wounded warrior retrieval resulting in less loss of life —so we’re seeing convergence, not competition.
What role do climate tech investors have in ensuring that momentum isn’t lost?
Even if on many agendas defence comes first right now, climate tech investors have a responsibility to stay engaged and to keep highlighting climate as a national and global security issue. They can also advocate for policies that encourage dual-benefit technologies.
By supporting startups that bridge both sectors—like energy efficiency tools, materials innovation, or clean mobility—they can help ensure sustained relevance and funding.
The investment thesis at America 2030 allows investors to diversify their portfolios into these dual use technologies. The fund invests at the intersection of climate and defense, some examples from the fund’s pipeline:
Base Power (grid modernization for renewables)
Form Energy (multi-day storage systems)
Redwood Materials (batteries circular economy)
Radiant (small nuclear reactors)
Could the shift to defence indirectly benefit climate tech?
Yes—particularly through shared innovation. For example, defence investments in lightweight composites and durable energy storage can accelerate breakthroughs in sectors like grid resiliency, clean transportation, or sustainable infrastructure. Also, as defense tech becomes more sustainability-conscious, there’s growing legitimacy for climate considerations within historically conservative procurement channels.
Is there a change in how investors prioritize sustainability alongside national security concerns?
Definitely. There's a new generation of investors who no longer see sustainability and security as separate lanes. Instead, they’re thinking holistically—about how technology reduces global conflict risk, resource dependence, and geopolitical instability. This is fueling support for what some call “peace tech.”
What policy or governmental trends do you think are driving this shift?
Several. The war in Ukraine, supply chain vulnerabilities, and increased emphasis on technological sovereignty have driven defense funding in the U.S., EU, and Asia.
Simultaneously, governments are issuing mandates for greener operations in military logistics, infrastructure, and procurement. And in the U.S., the government continues to deploy capital to support these technologies. These dual pressures are nudging the sectors closer together.
In your view, what are the long-term implications for startups in climate tech?
Startups may need to demonstrate cross-sector relevance—being green alone may not be enough. But then, realistically, clean technologies have always had to compete on cost and performance to gain critical initial market share.
Those that align with energy security, infrastructure resilience, or sovereign innovation will be better positioned for future funding rounds. There’s also room to rebrand some climate solutions as contributing to strategic stability, not just environmentalism – without compromising on a values driven investment thesis.
How can climate tech founders position themselves in this changing landscape to remain competitive?
They should start by mapping their tech’s applications to defense-adjacent needs—such as remote energy access, reduced material logistics, or intelligence support. Engaging with agencies like DARPA or NATO’s DIANA early, or applying for dual-use accelerator programs, can create unexpected opportunities.
For example, companies working on energy-efficient infrastructure, low-footprint data centers, or sustainable supply chains could collaborate with defence programs. We are also watching autonomous systems, advanced materials, and energy storage technologies—all key to both sectors. One company in this field we track at America 2030 is Crusoe. They capture waste gas from oil fields and converts it into energy for data centers, reducing emissions. This has dual-use applications in edge computing.
Are institutional investors responding differently compared to early-stage or venture investors?
Institutional investors often follow broader macro trends, so they’ve been slower but more consistent in climate funding. Early-stage and venture investors tend to chase hype cycles—some of which have shifted toward defense. But institutions are now taking note of climate security as a long-term investment thesis, so we may see renewed alignment soon.
Which sub-sectors in climate tech are more at risk of losing funding?
Pure-play consumer green tech might feel the squeeze, especially if it lacks ties to resilience or infrastructure. Also, capital intensive endeavors with weak monetization will suffer.
What’s your advice to climate-focused startups seeking investment in this environment?
Reframe your pitch to show strategic value. Can your tech reduce dependency on foreign materials? Can it operate off-grid or under extreme conditions? Think about resilience, not just reduction. Also, build relationships beyond traditional VCs—public-private partnerships, defense innovation hubs, and strategic corporates are increasingly active.
Who would you like to receive a pitch from?
Climate tech companies have a space in our portfolio if they address, energy security; We are looking at technologies that help local generation, transmission, and storage of electricity, as well as reduced dependence from rare commodities. Our main interest now is the decarbonization of IT, meaning power-efficient hardware for data centers and AI-Infrastructure. We invest from Series B onward but often start tracking interesting startups at seed level.
Outside of work, what inspires you or keeps you motivated?
I’m deeply motivated by the idea that we can build durable, advanced and energy efficient systems that not only addresses environmental issues but also creates economic opportunity.
Outside of work, I find inspiration in music and the natural world—I come from an arts background, and that creative lens helps me think expansively about innovation. I’m also energized by coaching young women leaders in other sectors.
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Further reading in my Forbes column:
Supply Chains in Chaos? These 5 Startups Turn Waste into Opportunity
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