How Public-Private Capital Drives Startups, National Security, and Innovation

Bailey DeVries was the Associate Administrator of the Small Business Administration’s (SBA) Office of Investment and Innovation where she led the agency’s portfolio of private investment partnerships and innovation funding programs including the Small Business Investment Company (SBIC) Program and the Small Business Innovation Research and Technology Transfer Programs (SBIR/STTR).

In an interview with Eric Volmar, DeVries discusses the deployment of billions of dollars across the U.S. innovation ecosystem through programs like the SBIC program, SBIR grants, and the Office of Strategic Capital (OSC). She shares insights from her nonlinear career spanning capital markets, venture investing, and government leadership—offering a candid discussion on how public-private partnerships fuel innovation, support startups, and strengthen national security. DeVries highlights the role of government capital in high-tech sectors, the evolving landscape of small business financing, and why mission-driven leadership matters.

Key Takeaways

• Government as a Catalyst for Innovation

  Programs like SBIR, STTR, and SBIC are crucial in de-risking early-stage investments, particularly in deep tech, biotech, hypersonics, and cybersecurity, where private capital alone may not suffice.

• The SBA's $46 Billion Investment Portfolio

  The SBIC program leverages public-private capital to fund small businesses, offering structured debt financing that enhances returns while minimizing taxpayer risk.

• Bridging the Capital Gap for Underserved Entrepreneurs

  SBA initiatives are designed to expand access to capital for underrepresented founders, including Latino and Black-led funds, addressing historical disparities in venture funding.

• Public-Private Collaboration in National Security Technology

  OSC partners with the SBA to finance critical technologies for U.S. defense, ensuring that innovation in areas like advanced manufacturing, AI, and space gets the backing it needs.

• The Value of Public Service

  Bailey’s career trajectory underscores the impact of mission-driven leadership in government, highlighting how talented individuals can drive policy changes that shape the future of U.S. entrepreneurship and innovation.