[borski]

It’s the other side that’s changed. Venture investors have both a much greater appetite for large amounts of funding for defense and IC startups, and a lot more experience navigating the defense/IC procurement process, at least in part due to success with Palantir, Anduril, SpaceX, and others.

I agree the overtures to attract the Bay Area are small potatoes, even if DIUx does help.

[rockskon]

Have many defense investments in startups proven profitable enough for VCs and other investors to continue pouring money into the sector? Or is the sector primarily banking on moonshots?

[borski]

VC, by definition, primarily banks on moonshots. That’s not unique to defense.

[rockskon]

Fair.

I don't have a good frame of reference to know when VCs consider the industry worth pouring more money into or if it's a black hole for investment.

Surely there's gotta be some point where the industry has to prove itself worth additional investment $ rather than banking on finding another company where over 80% its valuation is based on memes and dreams (see: SpaceX) or has cartoonishly inflated expectation of future profitability (see: Palantir).