Defense tech is flooded with money, but who’s built to last?

Defense tech startups are attracting major capital as companies like Anduril and Mach Industries see sharply higher valuations and U.S. defense spending is poised to rise. Investor Ross Fubini, who backed Anduril early, warns many entrants may stall in the Valley of Death between prototypes and durable government contracts.

The boom reflects growing investor confidence that defense procurement is becoming more accessible to startups, especially amid geopolitical pressure and higher budgets. But the sector’s long sales cycles, complex compliance demands, and production requirements mean only companies with commercial discipline and deep government relationships are likely to endure.