The Iron Bubble: Why defense tech might not be overhyped

VC funding for defense tech has climbed so high this year that even the term “record-breaking” feels inadequate. While the surge has some pointing to the appearance of a growing bubble, other industry experts say it is well justified.

According to PitchBook data, global VC defense tech deal value is likely to reach $10 billion by year end, having hit $7.7 billion already—more than double the amount raised in 2024.

Archangel Ventures GP Nicholas Nelson disputes the idea of a bubble because of the structural demand underpinning it and the “decades of underinvestment” on behalf of governments that are now playing catch-up.

Read the full article on Pitchbook here.