The Defense-Tech Bubble Is Headed for Consolidation

Venture capital poured nearly $50 billion into defense-tech startups last year, inflating Series A valuations to $300-$400 million despite no revenue or contracts. The actual procurement market totals about $480 billion, with roughly $93 billion allocated to autonomous systems and drones. Federal obligations amounted to $4.3 billion, and analysts expect consolidation within 18 months as many firms miss follow-on funding.