Fireside Chat with C5 Capital’s Kurt Scherer

In a CET Sandbox fireside chat, Kurt Sharer, Managing Director at C5 Capital, shared an inside view of investing in defense and dual-use technologies. From his early career in the U.S. military to building Booz Allen’s innovation center to now leading investments at C5, Sharer has helped shape the intersection of national security, capital, and startups. He offered Israeli founders candid advice on entering the U.S. market–and why there’s never been a better time to build.

Overview

Sharer’s message blends conviction and clarity: defense innovation is hard, but mission-driven founders now have more opportunity than ever. C5 Capital, with its deep roots in national security and global footprint, looks for teams building in defense, cybersecurity, nuclear energy, and space. More than capital, they offer access: to mentors, federal procurement knowledge, and key U.S. government buyers. And they see Israeli companies–gritty, focused, mission-aligned–as natural allies.

Why C5 Is Built for Defense Innovation

Founded ten years ago, C5 began as a cybersecurity-focused venture firm and has since evolved into a growth equity investor across national security sectors. The team combines commercial and deep government experience, with portfolio support that includes BD, board guidance, and operational help. Sharer emphasized their ability to help companies navigate opaque government processes: RFPs, program offices, and contract vehicles that can make or break a startup.

What C5 Looks For in Startups

C5 typically invests in companies with $4–6M+ in revenue and 40% YoY growth, but more than metrics, they look for people. For Sharer, a founder’s conviction, clarity of purpose, and resilience are essential. Especially in early-stage companies, team quality is often the best predictor of success. He highlighted emotional intelligence and a strong “why” as critical traits–along with a realistic understanding of their market and competition.

What Makes Israeli Startups Stand Out

Israeli founders bring urgency, mission focus, and technical strength, Sharer said. That mindset–rooted in real-world stakes–resonates with C5’s mission-driven thesis. But success in the U.S. also requires patience and relationships. Israeli companies don’t need U.S. entities to raise from C5, but a U.S. presence often accelerates collaboration. What matters most is being ready to learn how the U.S. government buys–and to work with partners who can guide that journey.

How Defense Tech Has Changed in the U.S.

In just seven years, Sharer noted, U.S. attitudes have shifted dramatically: from Google employees protesting Pentagon contracts to a world where top VC firms now proudly tout their defense focus. Sharer credits this to three drivers: a new generation of government leaders who understand innovation, a rising pace of geopolitical urgency, and the unmatched power of alliances. For founders, this means more pathways, more capital, and more receptiveness–but also higher expectations.

Key Takeaways

• C5 invests in growth-stage startups in defense, cyber, space, and nuclear energy, with strong founder support
• Revenue can come from allies like the IDF or NATO partners–not just the U.S.
• Israeli startups often bring grit, urgency, and mission–but must learn how U.S. procurement works
• C5 helps startups with access to decision-makers, not just advice
• The defense tech boom in the U.S. is real–and the ecosystem is maturing fast

Conclusion

For Israeli founders with global ambitions, C5 Capital offers not just money, but a mission-aligned partner. As Sharer put it, “there’s never been a better time to be a business owner” if you have conviction, clarity, and the willingness to learn. In today’s race between open and autocratic innovation models, founders have a role to play–and capital can be a force for national security.