Office of Strategic Capital (OSC)

The Office of Strategic Capital (OSC), under the Office of the Secretary of Defense, is dedicated to enhancing national and economic security by leveraging financial tools to boost private sector investments in critical technologies. The initiative addresses market failures related to capital access and cost through grants, contracts, direct loans, and loan guarantees. This approach aims to accelerate commercialization, manufacturing, and infrastructure investments within the critical technology supply base. It also provides an alternative source of capital against global competitors who might otherwise influence private capital for their technological advancements.

A primary goal of OSC is to increase deep technology private capital investment, thereby enhancing the commercialization of Department of Defense (DoD) and United States Government (USG) Science & Technology investments. The program focuses on scaling domestic production and securing national security supply chains for future industries. Additionally, OSC aims to finance industrial transformation by mobilizing suppliers to meet emerging needs. This involves co-investing with international partners in critical technology companies to support interoperability and integration.

The Critical Technologies Limited Partner Program is designed to increase capital access for companies developing frontier technologies by collaborating with interagency partners like the Small Business Administration's Small Business Investment Company program. The Loan Program Office provides direct loans and loan guarantees to Critical Component Technology companies, addressing market risks that limit private debt financing availability. These efforts are complemented by the Transition Acceleration Program, which aligns equity-based private investors with public funding to co-invest in military capabilities with clear transition pathways.

Furthermore, the Global Technology Scouting and Co-Investment Program emphasizes international collaboration by investing in non-profit technology scouting entities that co-invest in critical technology sectors globally. This aligns with the National Defense Strategy's directive for integrated deterrence in both technology and economic domains. The Investment Prospectus Analysis supports these initiatives by prioritizing critical technology areas for private capital investment based on U.S. comparative advantage and capital availability. Through these multifaceted efforts, OSC aims to sustain a resilient joint force while fostering innovation across defense-related industries.