Rising Olympians or Fallen Titans
The state of Defense Tech financing in 2024
Building our Defense has covered the intersections of defense, technology, and finance for the past 18ish months.
Without a doubt during that time, we’ve witnessed a renaissance in the broader Aerospace & Defense sector (to understand why, go back to the origins of Building our Defense).
DefenseTech (which I will use to also include a broader collection of technologies such as space, aerospace, aviation, and certain dual-use technologies) has remained one of the few bright spots in an otherwise dour tech market.
In November, Pitchbook highlighted the growth of the sector, highlighting that in 2021, VC funding was 40% higher than the seven preceding years, combined!
2023 saw the lowest overall VC activity since 2018, but even as VC activity remains cool, DefenseTech appears hot. The last quarter of 2023 saw $2.75Bn deployed into defense, space, and dual-use technologies. And things continue to look up as VCs have raised more than $1Bn so far in 2024 to deploy into these sectors.
Neverth…
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