Last week DOD set in motion the Trusted Capital Digital Marketplace, the goal of which is to give companies an alternative to foreign investors. Often, using foreign investors prohibits contracting with the Department of Defense (DoD). The marketplace originally piloted last year with the official launch last month.
Both companies and investors apply to join the marketplace and are screened by DoD. Those accepted are listed in the digital marketplace as trusted receivers or sources of funds and may connect with each other. As of this writing, 128 companies and 30 investors have logged into the marketplace.
Tax cuts and the Jobs Act of 2017, creating new designations for special national security-related companies in the tax code, are crucial components of the marketplace. Additionally, the fiscal 2021 National Defense Authorization Act references the marketplace program. Combined, these will increase use of the program; as users report on the program efforts, it expands. The goal is to help start-ups obtain funding without looking to foreign investors who may have adversarial ties.
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