The U.S. Navy’s Selection of Shield AI’s V-BAT and Why It Matters to Jetstream

Technology is changing how entire industries operate—from how goods are delivered to how healthcare is provided to how national security is managed. One area seeing rapid advancement is autonomous systems, or technology that can operate with minimal human input.

A recent example of this shift is the U.S. Navy selecting Shield AI’s V-BAT system to compete for intelligence, surveillance, and reconnaissance (ISR) services. While this is just one step in a larger process, it offers a real-world look at how next-generation technology is being evaluated and used today.

What is V-BAT—and why does it matter?

Shield AI, a recent addition to the Jetstream Venture Fund portfolio, developed V-BAT as a type of drone that can take off and land vertically—meaning it doesn’t need a runway.

That may sound simple, but it’s a meaningful advantage. It allows the system to operate from ships or remote locations, making it far more flexible than traditional aircraft.

In plain terms, V-BAT is designed to:

• Stay in the air for extended periods
• Operate in a wide range of environments
• Provide real-time visibility in areas where it may be difficult or risky for people to go

These are exactly the kinds of capabilities modern defense organizations are increasingly prioritizing, and why Shield AI stood out to Jetstream’s diligence team.

From idea to real-world use

One of the biggest challenges in emerging technology is moving from concept to actual deployment. Many ideas look promising early on but never make it into real-world use.

That’s why it’s notable that V-BAT has already been tested and used across multiple branches of the U.S. military, as well as with allied forces like the Royal Netherlands Navy.

For investors, this kind of real-world validation can provide insight into how a technology is progressing—not just in theory, but in practice.

Why Shield AI stood out to Jetstream

At the Jetstream Venture Fund, the focus is on identifying companies that are not only innovative, but also building technology with real-world application.

We believe Shield AI fits that profile in a few key ways:

• It is focused on mission-critical use cases, where performance matters
• It has developed a distinct technology platform
• Its technology can be applied across multiple environments and use cases

The addition of Shield AI to the portfolio reflects the fund’s broader approach: building exposure to companies operating in industries that we believe are shaping long-term technological and economic trends.

What this means for investors

Including companies like Shield AI in a managed venture portfolio allows investors to gain exposure to areas of innovation that are often difficult to access directly.

At the same time, it’s important to keep perspective. Developments like participation in a government program can signal progress, but they do not guarantee future outcomes or investment performance.

Instead, they offer a snapshot of how certain technologies are evolving—and where they may fit into larger industry shifts.

Final thoughts

The U.S. Navy’s selection of V-BAT is one example of how autonomous systems are moving from development into real-world use.

For everyday investors, moments like this can help illustrate how the types of companies included in venture portfolios are working to solve complex, real-world problems.

As industries continue to evolve, technologies like these are likely to play an increasingly important role—not just in defense, but across a wide range of applications.

This communication and its contents are for informational purposes only and do not constitute an offer to sell or a solicitation of an offer to buy shares of the Jetstream Fund (the “Fund”). The Fund is managed by Sweater Industries LLC (“Sweater”) as the investment adviser and Xcellerant Ventures, LLC (“Xcellerant”) as the sub-adviser.