May 2025 Edition

This edition covers my panel at the Ignition Nuclear Investment Summit in New York, where I discussed how venture capital evaluates nuclear opportunities. We’re celebrating closing our Arbor Energy investment, now in redlines for a >$1B power contract with a major hyperscaler, and Icarus’ recent momentum sparked by funding from Naval Ravikant (AngeList founder). Active SPVs include Stoke Space and a defense tech Series C partnership. Plus, some Golden Dome developments and market insights as we approach the halfway point of the year.

Portfolio Spotlight

Cyrus is proud to support innovative companies in defense tech and energy:

• Arbor Energy: We’ve officially closed our investment in Arbor Energy, which is currently negotiating final contract terms with a hyperscaler for a >$1B, 20-year clean power supply agreement to their data centers. An announcement expected by year-end will coincide with a new funding round.

• Icarus: Our portfolio company Icarus just secured additional funding from Naval Ravikant, founder of AngelList, demonstrating strong momentum and further external validation of their approach. Combined with their recent achievements reaching the stratosphere and winning awards at SOF Week, they’re well-positioned to land some substantial government contracts.

• Stoke Space & Defense SPVs: Through the fund’s venture partnerships, Cyrus maintains active allocations in Stoke Space and a large defense tech Series C, separate from our portfolio.

  • Stoke Space recently won a $5.3B NSSL contract alongside Rocketlab, and has secured a >$1B commercial pipeline. They’re targeting their first vehicle launch by late 2025 or early 2026.

  • We’ve also revived an opportunity to invest in a Series C for Chaos Inc., alongside Washington Harbour Partners and their GP Mina Faltas. Notably, former CIA Director George Tenet has joined as Executive Chairman of the Board, bringing significant strategic oversight to a company that has remarkably secured a program of record in just 3 years of existence.

Team & Strategy

This month, I had the honor of speaking on a panel at the Ignition Nuclear Investment Summit in New York, representing the venture perspective on nuclear sector investing. We discussed China’s influence, hyperscalers’ growing demand for clean consistent energy, and key regulatory and timing concerns - further highlighting non-traditional energy opportunities like Arbor.

Market Insights

Here are notable developments from recent months across defense and energy:

• Golden Dome Funding Acceleration: On May 20, 2025, President Trump announced selection of a $175B design for the Golden Dome missile defense system and named Space Force General Michael Guetlein as program manager. Lawmakers have proposed $24.7 billion in initial funding as part of a $150 billion defense reconciliation bill to accelerate space-based sensor and interceptor deployment. This follows strong bipartisan support for enhancing space-based missile defense capabilities.

• International Defense Collaboration: During the May 2025 announcement, Trump stated that Canada had "called us and they want to be a part of it," with Canadian representatives negotiating possible participation as part of larger trade and security negotiations. Japan continues advancing its Glide Phase Interceptor collaboration with the U.S., demonstrating growing allied commitment to counter China's hypersonic developments.

• Hyperscaler Nuclear Energy Surge: Major hyperscalers continue accelerating nuclear investments, with Google signing deals with Kairos Power for small modular reactor development and Microsoft’s 20-year agreement with Constellation Energy to restart Three Mile Island’s reactor. Recent analysis suggests nuclear energy could supply up to 10% of U.S. data center energy demand by 2035, as usage could increase fivefold to reach 176 gigawatts. Per the chart below, major tech companies are committing to substantial nuclear capacity, with Amazon leading at 5 GW by 2039, validating the massive market opportunity Arbor Energy is positioned to capture.

• Defense Contract Momentum: Large defense contracts continue flowing, with notable awards including Lockheed Martin's $742 million contract for High Mobility Artillery Rocket Systems production. Contract values from Q1 2025 have already exceeded over half the total value of all 2024 wins, indicating accelerating defense spending.

• SMR Technology Development: The nuclear industry faces timing challenges, with tech companies signing nuclear deals but most projects unlikely to be operational until the early 2030s. However, Amazon Web Services is actively hiring principal nuclear engineers to evaluate SMRs and nuclear fuel strategy roadmaps, signaling serious long-term commitment to nuclear-powered data centers. The chart below illustrates this dramatic growth trajectory, with U.S. data center energy demand expected to quadruple by 2030.

Until Next Time

Thank you for reading this edition. Cyrus Radar will return in June with more insights and opportunities. As the fund’s GP, I’ve been traveling to connect with investors—recently in Austin, Aspen, Las Vegas, Miami, and New York, with Detroit coming up next. If you’d like to meet in person to discuss the Cyrus strategy and opportunities; reach out by emailing me here. I believe successful businesses grow from relationships with people you know, like, and trust, and face-to-face meetings are the foundation in building those connections.

Regards,
Jordan Yashari
Founder & General Partner
Cyrus Ventures