Washington Capital Partners will focus
our future investment efforts on technologies pursuant to
our nation's Homeland Security initiative. The catastrophic
events of September 11th, 2001 have changed forever the manner
in which we view national security. New market drivers exist
in which the federal government and corporate America will
deploy tremendous capital for the development and commercialization
of security technologies.
Not since the peak of the Cold War
have we seen such an escalation in the federal allocation
of funds to research and development. By the end of 2003 the
government will have set aside roughly $100 billion across
various programs for research and development. The nascent
Department of Homeland Security currently has a budget of
approximately $36 billion, of which close to $27 billion will
be deemed 'discretionary' spending. The onus will not be on
the federal government alone; corporations of all sizes recognize
their vulnerabilities and will devote significant resources
to develop Homeland Security technologies. We feel these new
market drivers are not transitory in nature and will be present
for many years to come.
The end result of these new dynamics
will be a tremendous pooling of financial and intellectual
capital within our nation's network of entrepreneurs as well
as our federal, corporate, and university labs - translating
into significant and sustainable deal flow for Washington
Capital Partners.
