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Defense tech is flooded with money, but who’s built to last?
Original from TechCrunch: Defense tech is flooded with money, but who’s built to last?

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

The defense technology sector is experiencing significant growth, highlighted by recent valuation increases for companies like Anduril and Mach Industries, which saw their valuations double and quadruple, respectively. This surge comes in conjunction with a proposed 40% increase in the U.S. defense budget, signaling heightened government investment in military innovation. As a result, numerous startups are emerging, eager to secure government contracts. However, venture investor Ross Fubini, who was instrumental in Anduril's early funding, warns that many of these new entrants may struggle to survive the challenging transition from prototype development to securing contracts, a phase often referred to as the "Valley of Death." This dynamic landscape reflects both the urgent demand for advanced defense solutions and the competitive pressures facing emerging companies in the industry.

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