In-Q-Tel is NOT CIA nor its "venture arm" contrary to the popular misconception, and it's actually one of the more open VCs.

Are you sure. They do seem to be pretty close

https://www.cia.gov/library/publications/intelligence-histor...

100% sure. Like your source says, it's a partnership between the CIA and the private sector.

"Close" does not mean part of the organisation. The founder Norman R. Augustine isn't even a CIA person. It is somewhat similar to a spinned-off company which runs independently but has tight connections (and a contract, in case of In-Q-Tel) with the organization that spinned it off.

* In-Q-Tel (theoretically) may have other contracts and major partnerships.

* In-Q-Tel gets to pick who they invest into; CIA may express interest in a particular area or a company but In-Q-Tel manage their portfolios.

* While In-Q-Tel is non-profit, the profits flow back and the employees may profit from it. Meaning, while part of the funds come from the CIA (taxpayers), part come from the past profits.

More detail to those interested in law: https://scholarlycommons.law.northwestern.edu/cgi/viewconten....

All this sounds like a great coverup for a CIA company :)

Jokes aside, it's a great way of getting free money from the government without too much reporting to do.

It's fairly unusual for the US, but similar structures exist in countries trying to nurture their startup ecosystem.