Defense Tech's Funding Surge Masks Startup Durability Challenge

The defense technology sector is riding an unprecedented investment wave, with major players like Anduril doubling valuations and government defense budgets expanding sharply. Yet industry insiders warn that most new entrants will perish in the critical gap between securing prototype contracts and scaling into profitable production—a reality that separates truly viable ventures from well-funded failures. This divergence underscores a deeper truth: success in defense tech demands more than capital; it requires operational excellence and the rare ability to bridge prototyping and production at scale.