November 2025 Report:
Examining Venture’s Defense Tech Push

Defense tech has emerged as a favorite among venture investors in recent years. We examine the forces driving capital into the sector.

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What’s inside the report
  • Recent geopolitical upheavals have exposed weaknesses in America’s defense industrial base, heightening the urgency for next-generation capabilities — from autonomous systems to space-based technologies.
  • As Pentagon leaders start to confront decades-old procurement systems and tap commercial innovation for modern warfare, venture capital is pouring into defense tech.
  • Anduril offers a prime example of how a market-driven approach can transform defense technology, blending software and hardware to
    accelerate military advancements.
  • A look at what makes the sector attractive — from long-term, sticky contracts to recession resilience — as well as the challenges investors face, including the “valley of death” that startups must navigate to secure contract approval.

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