Defense Tech Became Popular

Last year, defense tech became very popular. The U.S. government proposed a big budget increase. It will give 40% more money. Anduril and Mach Industries saw their valuations rise. Anduril doubled its value. Mach Industries quadrupled its value. Many new startups started to chase government contracts. Ross Fubini was an early investor in Anduril. He wrote the first check. He said most startups will lose their way. They will enter the Valley of Death. The Valley of Death happens after a prototype contract. Startups will have a prototype but no money for production. They will fail. So defense tech has a lot of money now. But only a few startups will survive. They need to build real products. They need to show they can produce at scale. The government wants better technology. It wants drones and weapons. Startups will try to meet these needs. But production is hard. Factories are expensive. Many startups will run out of money. Investors like Ross Fubini know this. He gave money to Anduril first. Anduril succeeded. But many new startups will not. They will get stuck. They will not make the jump from prototype to full production. So defense tech is hot but dangerous. Only smart startups will last. The future will be difficult for many. Some startups will get help from big companies. Others will work alone. The government saw this problem. It will try to help. But the Valley of Death is still a big challenge. Startups must plan for production. They cannot stop after the prototype. They need more funding. They need to build teams. They need to show their product works in real life. If they do this, they will survive. If they do not, they will disappear. Ross Fubini knows this from experience. He thinks many will fail. But the ones that succeed will change defense tech.