
The relationship between Silicon Valley and the Defense Department has been a topic of discussion, particularly in light of recent developments in defense technology startups. Ares Industries, a company emerging from Y Combinator's current batch, is focusing on producing anti-ship cruise missiles that are ten times smaller and cheaper than traditional offerings. This startup aims to address the high costs and low production volumes associated with existing military contracts. The ongoing trend highlights how the tech industry is increasingly engaging with defense, a relationship that has historical roots and is often characterized as close-knit rather than inconsistent. Recent funding rounds for companies like Anduril Technologies and Helsing AI further underscore the growing intersection of technology and defense, as these firms attract significant investment in a sector that is becoming more reliant on government contracts. Analysts note that the long military procurement cycles pose challenges for defense tech startups, complicating their ability to secure funding while awaiting contracts.


A startup backed by Y Combinator is touting an "anti-ship missile" that is ~300lbs. Most ASMs have a warhead fraction of, at best, 1/6th of their mass. So a we're talking about a 50lb warhead for an *ANTI-SHIP* role. Clearly nobody did their DD.
Long military procurement cycles combined with short timelines for raising venture capital create a major hurdle for defense tech startups, making it hard to secure funding while awaiting contracts. @SapphireVC's @jai_das shared his thoughts with @WSJ's @marcvarta on how recent… https://t.co/YBL11mTFwD
One way to look at "defense tech startups" is Silicon Valley moving in to disrupt hardware as we always hoped it would. Another way is that software is slowing down, the new transformative possibilities running out, and Silicon Valley is now leaning on government funding.