World News
Dan Gwak of Point72 Ventures on why defense tech is becoming the next big thing for investors on August 5, 2023 at 4:48 am
Dan Gwak has had a more varied life than many investors. He grew up in Jakarta, the son of Korean parents who ran a shipping business. After high school, he headed to Cornell in the U.S., and became an associate at The Carlyle Group.
Everything was moving up and to the right, so to speak. Then, like a gut punch, the financial recession hit in 2008.
Gwak was among many who suddenly found themselves on uneven footing and evaluating their next steps. Unlike most of his young investing banking peers, Gwak quickly decided to join the U.S. Marine Corps as a machine gunner. It seemed like a natural decision, given that in Korea, where military service is compulsory for men between ages 18 and 35, both Gwak’s father and brother had served. It was also Gwak’s way of “becoming American,” he says.
While he wasn’t expecting his service to end four years later in Afghanistan – he was wounded and sent home – Gwak again didn’t waste much time deliberating about his next moves. He applied and was accepted to Harvard Business School, and nearly since that time, he has been investing at the intersection of national security and technology. Out of school, he joined In-Q-Tel, which is the venture arm of the CIA. In 2017, when the billionaire hedge fund manager “Stevie” Cohen decided to build out a venture practice — Point72 Ventures — he poached Gwak, and Gwak has remained active since, including leading a 50-person team that has invested more than $1 billion into roughly 130 companies on Cohen’s behalf.
The deals range across four key areas: deep tech, fintech, enterprise and defense tech. But in a lengthy conversation with Gwak earlier today, he talked the longest about defense tech as he’s passionate about it and because the way he sees it, Washington is focused more than ever on the global balance of power — and looking for any edge it can find. Below are excerpts from that part of our chat, edited lightly for length and clarity. You can listen to the entire conversation here.
TechCrunch: You have these four areas on which you’re focused, but fintech has cooled off after several frothy years, defense tech now seems top of mind for investors. Is that true inside Point72?
Dan Gwak: Absolutely. If you rewind the clock, fintech was an area that was very hot and we were very active in deploying a lot of capital. Today, the area that’s really come up is defense tech. It’s not just that the market in general has corrected, but rather, I think defense tech, specifically as an opportunity, has really [gained traction] among other venture investors, as well as founders [along with a growing] awareness of the importance of defense tech to the government.
Given your experience over the years, working for and selling to the government, does the sales process move any more quickly than historically? The longstanding knock, of course, is that it’s too bureaucratic and there’s too much red tape to get past.
Even five years ago, I would have told you that defense tech investing the way that we think about it – which is investing in companies whose primary customer is going to be the Department of Defense – is a bad idea for exactly the reason that you describe. But that has changed for a couple of big reasons. First of all, the government is generally inefficient at buying things until something comes along that has the potential to shift the global superpower balance, and that’s what you’re seeing today. If you look at the last time that happened, that was probably pursuing the atom bomb and the Manhattan Project. When you look at things like AI and all the ways it applies – whether that’s autonomy or computer vision or natural language processing – these are all things that absolutely can shift the global superpower balance, and the government sees that now. And when the government sees that, then it becomes much, much better at buying things.
It seems like a portfolio company of yours, Shield AI, falls into this category. [Editor’s note: Shield AI develops AI-powered fighter pilots and drones that it sells to the U.S. Air Force and U.S Army.]
Autonomous drone swarms do have the ability to shift the global superpower balance, whoever gets that right and can release a drone swarm of thousands. That is an approach [against which there are] just not good defenses against today, even if you own the largest aircraft carrier fleet in the universe. [And because a company like Shield AI can help in] the future preparedness of America, it can, as a result, get a lot of the funding that comes out of the government. It used to be because of the slower sales cycles and so forth, you had to kind of count on the prize being larger but taking longer to get to. [Today] we’re finally entering a time where, as long as you align with something that really, really matters to the government and you can connect the dots effectively, you can grow that business as quickly as as any commercial business,
What has Ukraine meant for its business?
Ukraine’s impact on defense tech has been a very catalyzing one. Everyone understood even before Ukraine that drone swarms and the effective use of attritable technologies and things like that could have a very big impact. Ukraine just serves to highlight that In real life. When you look at what’s going on there, that effective use of drones has had a massive impact in that battlefield.
So-called slaughterbots are autonomous drones that are programmed to kill people without any human intervention. How does a company like Shield AI deal with potential customers that might misuse its technology?
I don’t want to speak on the company’s behalf on that topic because it is a conversation that the company should have with its customers, and I’m not necessarily in those conversations. However, I think the overall topic — the danger posed by autonomy when it comes to taking human beings out of that decision to attack — is a very interesting one. To my mind, it’s all about system design. Any weapon in the world that has a kinetic effect can be very, very dangerous — to the enemy, to ourselves, and to noncombatants who just happen to be in the wrong place at the wrong time.That’s why when you look at all these kinetic systems, there’s always good system design around the decision to take an action, and a human being is usually in the loop. When it comes to this new wave of technology, it’s not like we’re throwing that concept of safety out the window. Good, sound, system design, as informed by the risks that we are willing to subject ourselves to, is always going to be an important part of the equation.
The U.S. government is a big customer that can demand that things are tailored for its purposes. Does it preclude these companies from selling to other governments? How does that work? Do they have to get buy in from Washington?
It depends on what other country we’re talking about [laughs]. To contextualize with numbers, though, the overall spending of the United States and all of its allies on defense is $1.6 trillion. That is a gigantic market. It is an order of magnitude larger than the commercial SaaS market. Of that 1.6 trillion, fully 50% of it is just the U.S. So when you see defense tech companies so focused on the U.S. defense market, there’s a good sound reason for that. That [also] means that if that largest part of the market is asking you not to interact with nations that might be adversarial to the United States, you’re going to respect that.
Are the investors interested in these deals changing at all? I know who some of the players are — you, In-Q-Tel, Lux. . . .
Lux is certainly one that’s been investing where deep tech meets defense tech for a while. [There]’s also Founders Fund, 8VC, a16z as part of their American dynamism effort. There is a core group of half a dozen or so that have been focused on defense tech for for a while. Now I’m seeing additional investors, tier one venture investors, who were not necessarily historically interested in defense tech, start to be a lot more interested. That that’s a good thing. The opportunity is just so large. If you think about it, the DoD has an $800 billion budget and only 1% of that today goes to startups.
That’s an incredible stat. I guess I have the headline to this story now. Who gets the rest? Lockheed Martin?
It’s largely the defense primes today, which serve an important purpose. But the truly transformational technologies that the DoD needs to be able to harness in the next 10 years, those are going to come from startups.
Dan Gwak has had a more varied life than many investors. He grew up in Jakarta, the son of Korean parents who ran a shipping business. After high school, he headed to Cornell in the U.S., and became an associate at The Carlyle Group. Everything was moving up and to the right, so to speak.
By Bolanle Media Newsroom
Published: June 6, 2025
What began as a powerful alliance between Elon Musk and Donald Trump has erupted into a public political brawl—with implications that stretch far beyond personal ego. From electric vehicle policies to federal contracts, the stakes are massive for both men—and for America’s political and tech landscapes.
The Spark: Musk Denounces Trump’s “One Big Beautiful Bill”
On June 3, Elon Musk publicly condemned Trump’s proposed One Big Beautiful Bill Act, calling it a “disgusting abomination” loaded with “pork-barrel spending.” At the heart of his frustration is the bill’s elimination of electric vehicle tax credits, a direct threat to Tesla’s market advantage.
In a post on X (formerly Twitter), Musk warned that the bill was “a betrayal of innovation” and hinted at launching a new centrist political movement.
Trump Responds: Personal Insults and Threats to Contracts
Trump wasted no time firing back. On Truth Social, he called Musk “mentally unstable,” accusing him of disloyalty and suggesting he’s suffering from “Trump Derangement Syndrome.” He even went further, threatening to revoke SpaceX and Tesla’s federal contracts, which total over \$22 billion.
“He owes everything to me,” Trump posted. “And this is how he repays us?”
The Feud Escalates: Impeachment and Epstein Allegations
In an unexpected twist, Musk alleged Trump’s name appeared in Jeffrey Epstein’s files and called for his impeachment, igniting backlash and fueling conspiracy theories. While there’s no confirmed evidence of Trump in the unsealed documents, Musk’s statement went viral, further deepening the rift. The full video statement was posted on X here.
Financial Fallout Hits Both Camps
This war of words quickly spilled into the markets:
- Tesla stock dropped 15% in a single day, costing the company more than \$100 billion in market value. Musk reportedly lost over \$20 billion personally.
- Trump Media & Technology Group shares dipped nearly 8%, and the MAGA-backed \$TRUMP coin fell by more than 12%.
- Wall Street analysts began speculating that the feud may have long-term consequences for both figures’ business empires and political influence.
Musk Floats a Third Party
On June 5, Musk doubled down with a cryptic but deliberate tweet: “It’s time. A new party for a new future.” While short on details, the post immediately trended, with political commentators suggesting he may launch a centrist political party that could disrupt the 2026 midterms.
Some see this as a move to appeal to fiscally conservative, socially moderate voters disillusioned with both major parties.
What’s Next?
The political implications are still unfolding. Could Musk’s feud fracture the GOP? Will federal contracts be impacted? Will a centrist party gain real traction?
Bolanle Media will continue covering this evolving story—tracking not just the headlines, but what this says about power, loyalty, and the future of American leadership.
The newly passed Trump tax bill is making headlines for introducing some of the most significant tax breaks and policy changes in years. Whether you’re a worker, parent, homeowner, or business owner, there’s a good chance something in this bill will impact your finances. Here’s a clear, detailed breakdown of what’s inside, who benefits, and what you need to know.
1. No Tax on Tips (With Restrictions)
Who Benefits: Workers in industries where tipping is customary (servers, bartenders, hair stylists, taxi drivers).
Key Details:
- Eligibility: Must work in a tipping industry, earn less than $150,000/year, and tips must be paid voluntarily (not as a service charge).
- Cash Only: Only cash tips are eligible (though there’s some debate if credit card tips count).
- Cap: Maximum of $25,000 in tax-free tips per year.
Fine Print:
This change won’t apply to office workers or high earners. For many, the main benefit is being able to report cash tips for things like loan approval, without paying extra tax.
2. No Tax on Overtime Pay
Who Benefits: Employees earning less than $150,000/year who work more than 40 hours a week.
Key Details:
- Deduction: You can deduct the full amount of your overtime pay from your taxable income, making it effectively tax-free.
- Time Frame: Applies to income earned from 2025 to 2028.
- Note: Only a small percentage of workers regularly receive overtime, but for those who do, the savings could be substantial.
3. $40,000 State and Local Tax (SALT) Deduction
Who Benefits: Taxpayers in high-tax states who itemize deductions.
Key Details:
- New Cap: Raises the SALT deduction limit from $10,000 to $40,000.
- Income Limit: Only for those with adjusted gross income under $500,000.
- Must Itemize: You’ll need to itemize deductions instead of taking the standard deduction ($30,000 for most).
Fine Print:
This mostly helps people in states like California, New York, and New Jersey. If your state/local/property taxes are high, this could mean thousands in savings.
4. Deduct Interest on Personal Car Loans
Who Benefits: Buyers of American-made vehicles with loans.
Key Details:
- Deduction: Up to $10,000 in interest paid on a personal car loan can be deducted each year (2025–2028).
- Income Phase-Out: Deduction phases out for singles earning over $100,000 and married couples over $200,000, disappearing entirely at $150,000/$300,000.
- Car Must Be Made in the USA.
Caution:
Don’t take out a bigger loan just for the deduction—only buy what you can afford!
5. $1,000 “Trump Account” for Newborns
Who Benefits: Children born in the U.S. from 2025–2028.
Key Details:
- One-Time Credit: $1,000 per eligible child, deposited into a special account.
- Investment Growth: Money can be invested and used for education, a first home, or starting a business—taxed at favorable rates.
- Unused Funds: If not used by age 31, the account is cashed out and taxed as regular income.
6. Clean Vehicle and Energy Credits Ending
Key Details:
- The $7,500 electric vehicle tax credit and other clean energy incentives will end by 2026.
- If you want these rebates, act fast before they’re gone!
7. Extension of 2018 Tax Cuts and Jobs Act
Who Benefits: Business owners, high earners, and estates.
Key Details:
- Top Tax Bracket: Remains at 37% (was set to rise).
- Business Deductions: 20% pass-through deduction and 100% bonus depreciation for business investments extended.
- Estate Tax: Higher exemption amount continues.
8. Social Security Income Relief
Who Benefits: Retirees collecting Social Security.
Key Details:
- Extra Deduction: $4,000 added to the standard deduction for those on Social Security (phases out above $75,000 single/$150,000 married).
- Not All Income Tax-Free: This shields some, but not all, Social Security income from taxes.
What Does This Mean for You?
- Workers: More take-home pay if you earn tips or overtime.
- Families: $1,000 for each new child, plus potential savings if you itemize deductions.
- Car Buyers: Big deduction if you buy American-made and finance your car.
- Homeowners in High-Tax States: Major relief on state/local taxes.
- Business Owners: Continued access to significant tax breaks.
- Retirees: Extra deduction for Social Security recipients.
Share This!
If you found this breakdown helpful, share it with friends and family—these changes could mean thousands of dollars in savings for millions of Americans. Stay tuned for updates as the bill is implemented and more details emerge!
Have questions about how these changes affect you? Ask below!
French President Emmanuel Macron has dismissed the uproar surrounding a viral video showing his wife, Brigitte Macron, pushing his face as they arrived in Hanoi, Vietnam, calling the moment a playful exchange between the couple amid a media storm.
The incident occurred on May 25, 2025, as the Macrons landed in Hanoi to begin a tour of Southeast Asia. Video footage captured Brigitte Macron, dressed in red, reaching out from the doorway of the presidential plane and placing both hands on her husband’s face, giving it a noticeable shove. President Macron appeared briefly startled before quickly regaining his composure, smiling, and waving to those outside the aircraft. The couple then descended the stairs together, with Brigitte notably declining her husband’s offered arm.
The footage rapidly spread online, fueling speculation and debate in France and beyond. Some social media users and commentators questioned the nature of the gesture, while others interpreted it as a lighthearted moment. The French media widely covered the story, with headlines pondering whether it was a “slap” or simply a “squabble”.
Addressing reporters, Macron insisted that the incident was being blown out of proportion: “We are teasing and having fun with my wife, and a video turns into a sort of global disaster,” he said. “Everyone needs to calm down.” Macron further described the exchange as playful, stating, “We are squabbling and, rather, joking with my wife,” and dismissed any suggestion of a serious disagreement as “absurd”.
The Élysée Palace echoed the president’s remarks, describing the moment as a private instance of “decompressing one last time before the start of the trip by horsing around” and a “moment of complicity” between the couple. Officials noted that the incident was quickly seized upon by critics and conspiracy theorists who are habitually hostile to the French leader.
Despite the viral attention, the Macrons continued their official engagements in Vietnam as planned, with the president focusing on diplomatic meetings and efforts to strengthen France’s presence in Southeast Asia. The couple, married since 2007, appeared together at all subsequent events, signaling that the incident had no impact on their public duties.
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