Defense technology is very hot right now. Anduril and Mach Industries just doubled and quadrupled their valuations, respectively, and the US government is proposing a 40% increase in the defense budget. A wave of startups are chasing these government contracts, but most end up in the valley of death between prototype contracts and actual production contracts, said Ross Fubini, the venture capitalist who wrote Mr. Anduril's first check.
In this episode of TechCrunch's Equity podcast, Rebecca Bellan asks Fubini (founder and managing partner of XYZ Venture Capital, which was built on the Palantir alumni network and currently has nearly $2 billion in assets under management) what separates the survivors from the rest.
Listen to the full episode and hear what's next.
Why Ukraine and Iran have become testing grounds for U.S. defense startups, and which companies are entering the field. Why other countries are building sovereign defense technology ecosystems and what that means for where U.S. startups build and sell. The sustainability issue that no one wants to talk about, and why autonomous logistics is the real moat. The areas in which Mr. Fubini will write checks next range from AI-driven U.S. manufacturing to government software for health and human services.
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