Defense tech is flooded with money, but who’s built to last?
The defense technology sector is experiencing a surge in venture capital funding and government spending. However, experts warn that many startups may fail to bridge the gap between prototype development and large-scale government contracts.
Why it matters
The influx of capital into defense tech is reshaping national security procurement and the startup ecosystem, highlighting the risks of the 'Valley of Death' in government contracting.
Defense tech is red hot right now. Anduril and Mach Industries just doubled and quadrupled their valuations, respectively, and the U.S. government is proposing a 40% increase in defense budget. A wave of new startups is chasing those government contracts, but according to Ross Fubini, the venture investor who wrote Anduril’s first check, most of them will get lost in the Valley of Death between prototype contract […]
Balanced reporting on market trends and industry challenges.
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