<ul data-eligibleForWebStory="true"><li>A former military personnel turned VC discusses the challenges and risks associated with investing in defense technology.</li><li>The rapidly evolving tech-enabled battlefield highlights the short upgrade and obsolescence cycles, making defense tech akin to fast-moving consumer goods.</li><li>Defense tech success relies on building quickly, managing a high-volume, low-margin model, and excelling at marketing and distribution.</li><li>Unlike FMCG, defense products must not only be well-marketed but must also effectively function in extreme conditions and under fire.</li><li>Deep technology with substantial moats and scarce talent is more valuable, contrasting with shallow defense tech that faces quicker obsolescence and higher risk.</li><li>Deep tech valuable across multiple sectors, including defense, is referred to as dual-use deep tech, offering growth opportunities beyond government spending limitations.</li><li>The article suggests that running a defense VC fund is too high-risk, favoring dual-use deep tech companies that diversify beyond government-driven markets.</li></ul>

Is Defence Tech VC Backable?

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