CIA and Military Involved in Venture Capital Investing
Further evidence of the military-corporate alliance is the military and intelligence agencies involved in venture capital schemes.
In 2002 Congress gave the Army $25 million to establish an independent venture capital fund to get into companies that can produce promising military technology. It was included in the $317 billion military budget. The Army has a $1.2 billion research and development budget which critics have said was slow in delivering battlefield advances. It also relied too much on major defense contractors and ignored smaller companies not establishes.
Back in 1998 the CIA set up In-Q-Tel. It is an independent venture capital firm that since 2002 funneled $50 million to several dozen youthful information technology companies.
“Army Ordered to Hunt Down New Technology.” Science Magazine, Vol. 295. January 2002. P. 422-423.