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0 pointsborski16d ago0 comments

It’s the other side that’s changed. Venture investors have both a much greater appetite for large amounts of funding for defense and IC startups, and a lot more experience navigating the defense/IC procurement process, at least in part due to success with Palantir, Anduril, SpaceX, and others.

I agree the overtures to attract the Bay Area are small potatoes, even if DIUx does help.

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3 comments · 1 top-level

rockskon16d ago· 2 in thread

Have many defense investments in startups proven profitable enough for VCs and other investors to continue pouring money into the sector? Or is the sector primarily banking on moonshots?

borskiOP16d ago

VC, by definition, primarily banks on moonshots. That’s not unique to defense.

rockskon16d ago

Fair.

I don't have a good frame of reference to know when VCs consider the industry worth pouring more money into or if it's a black hole for investment.

Surely there's gotta be some point where the industry has to prove itself worth additional investment $ rather than banking on finding another company where over 80% its valuation is based on memes and dreams (see: SpaceX) or has cartoonishly inflated expectation of future profitability (see: Palantir).

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