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

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

Posted on June 3, 2026October 10, 2026 By Muhammad Safdar No Comments on Defense tech is flooded with money, but who’s built to last?
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Everything you need to know about defense tech is flooded with money.

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Defense tech is red hot right now. Anduril and Mach Industries just doubled and quadrupled their valuations, respectively, and the U.S. government is proposing a 40% increase in defense budget. A wave of new startups is chasing those government contracts, but according to Ross Fubini, the venture investor who wrote Anduril’s first check, most of them will get lost in the Valley of Death between prototype contract and real production deal.  

Watch as, on this episode of TechCrunch’s Equity podcast, Rebecca Bellan asks Fubini — the founder and managing partner of XYZ Venture Capital, built on the Palantir alumni network and now approaching $2B AUM — what separates the survivors from the rest. 

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. 


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More on defense tech is flooded with money

Stay tuned for updates on defense tech is flooded with money as the story develops. Related: US Open 2026: TV Schedule, How to Watch, Stream All the PGA Tour Golf From Anywhere.

Frequently Asked Questions

Why is defense tech attracting so much money?

Anduril and Mach Industries just doubled and quadrupled their valuations, and the US government is proposing a 40% defense budget increase.

What is the Valley of Death for defense startups?

The gap between prototype contract and real production deal where most startups get lost, per investor Ross Fubini.

Who is Ross Fubini?

The venture investor who wrote Anduril's first check, founder and managing partner of XYZ Venture Capital, built on the Palantir alumni network and approaching $2B AUM.

Where was this discussed?

On TechCrunch's Equity podcast, with Rebecca Bellan asking Fubini what separates survivors from the rest.

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