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Vertical Snapshot: Defense Tech
With rising geopolitical tensions and government acquisition reforms, investment in defense tech is on track to surge to nearly $185 billion by 2027. PitchBook’s 2023 Vertical Snapshot: Defense Tech report dives into the industry drivers and the startups poised for liftoff. Key takeaways include: (1) Renewable energy and biotech ranked as the top defense tech segments; (2) 71% of exit activity in the space since 2016 has involved strategic acquisitions; and (3) despite a projected CAGR of nearly 16%, there are challenges — the “valley of death” funding gap, government bureaucracy, and specialized talent shortages.