Velvet Sea Ventures

Larry Prior, co-founder and managing partner, drives investment decisions. Prior was previously CEO of ManTech International, a major defense contractor, and held senior roles at CSC and SAIC, which gives the firm direct insight into government technology needs. The team is small and partner-led, with Prior as the only publicly named principal.

The firm focuses on early-stage and growth-stage companies operating at the intersection of national security, enterprise software, and artificial intelligence. Its thesis targets dual-use technology — products that serve both government and commercial customers. Sectors include cybersecurity, industrial tech, and AI/ML platforms.

Sourcing relies heavily on the partners' classified-world and defense-contracting networks. Larry Prior's career inside ManTech, CSC, and SAIC provides access to founders working on sensitive government technology programs before they become widely known to commercial VCs. This embedded-network model differentiates the firm from generalist early-stage investors.

Velvet Sea Ventures operates as a private venture capital firm, not a single family office. Its capital appears to come from a concentrated group of individuals with defense-industry backgrounds rather than a single family's wealth. The firm functions like a specialist early-stage technology investor.

Known portfolio investments include Primer AI, which builds machine-learning tools for intelligence analysts, and Rebellion Defense, a UK-based developer of AI-driven defense software. Both investments reflect the firm's thesis around mission-critical technology serving government end-users first while holding commercial potential.

The firm is primarily focused on early-stage and seed investments but has the flexibility to participate in growth rounds when a portfolio company's government contracts scale. The core posture remains early-stage, where the partners' technical and procurement expertise has the most impact.

Velvet Sea's difference comes from its operator background — Larry Prior ran a publicly traded defense contractor before entering venture capital, giving him an insider's view of federal acquisition processes. This operational defense-industry leadership is less common among VCs, who more often come from finance or policy backgrounds.