Sequoia's Shaun Maguire: “Defense tech has become the hottest field for VC funds”
Sequoia's Shaun Maguire: “Defense tech has become the hottest field for VC funds”
Maguire identified sensors, quantum technology, and artificial intelligence as key areas where Israel could excel.
“Until a while ago, defense tech was a dirty word. People avoided admitting connections with security companies or military-related capabilities. Today, defense tech has become the hottest field for venture capital funds, not least thanks to the war in Ukraine and also the war in Israel, which have normalized this field,” said Shaun Maguire, a partner at Sequoia Capital, speaking with Avi Eyal, Co-Founder and Managing Partner at Entrée Capital.
Speaking at the DefenseTech Summit, hosted at Tel Aviv University in cooperation with the Tel Aviv Municipality and the DDR&D at the Ministry of Defense, Maguire also underscored the growing relevance of dual-use technologies—those serving both civilian and military applications. “Any startup, even if it starts producing a product that is completely non-military, can later channel it into the security field. In World War II, prominent companies that gained momentum started with civilian products, like refrigerators. The same is true today with drone technologies.”
1 View gallery
Sequoia's Shaun Maguire with Entrée Capital's Avi Eyal.
(Dror Sithakol/Lens Productions)
Maguire also highlighted the growing adoption of Israeli technologies in the Gulf region, particularly by the United Arab Emirates, a key player in the Abraham Accords. “It does not surprise me that the Gulf countries, led by the United Arab Emirates, adopt Israeli technologies. Israel has something to offer, which is why it was also able to obtain four agreements within the framework of the Abraham Accords.”
Reflecting on Israel’s unique innovation ecosystem, Maguire observed that the nation’s decentralized approach fosters competition and creativity. “I have been to many countries, and the main lesson for me is that there are very centralized countries and there are those that are much less. In Israel, the approach is to let everyone compete with each other and see what happens. There is no doubt that start-ups that receive government support or alternatively provide technological services to the country are more successful. I am more optimistic about Israel than ever.”
Looking ahead, Maguire identified sensors, quantum technology, and artificial intelligence (AI) as key areas where Israel could excel. “I predict that we will see a huge amount of sensors for different uses, and Israel can lead this field. Israel is also incredibly strong in the quantum field. I don’t think Israel has missed the train in the field of AI; the race is still on. On the contrary, Israel is one of the leaders in the field, and Israeli companies are among the most successful globally.”
Maguire also offered advice for aspiring entrepreneurs in the tech sector. “Once you have one product, as a start-up, you have to think from the very beginning about one crucial aspect: ‘How do I stay alive?’ If you are in hardware, don’t listen to advice from the software field—they are entirely different. Your focus should be on securing a regular income base to stay alive.”
