Why No One Wants to Back the Gun of the Future

Startups struggle as Silicon Valley investors shy away from investing in firearms

SAN FRANCISCO—It was supposed to be the dawn of a new era of “smart guns.”

Spurred by the deaths of 20 young children in the 2012 Sandy Hook elementary school shooting, Silicon Valley set out to make safer, technologically advanced weapons that could only be fired by their owners.

Venture-capital luminary Ron Conway, known for his early investments...