Anduril’s Schimpf: Economic Warfare is the New Battlefield, and Our Supply Chains Are Naked

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(SeaPRwire) –

By: Reginald Vance, a venture partner specializing in semiconductor valuation and advanced materials

The defense industry is in a frenzy. Valuations are soaring, with some companies hitting 50x or even 100x forward revenue. It’s a bubble, plain and simple. We’ve seen this before. Think Uber and Lyft. In any hot sector, the top two players grab nearly all the returns. Chasing stratospheric valuations means setting an impossible growth bar. Anduril has been deliberate with its pricing, but the temptation is real.

The fundamental shift in conflict is stark. It’s no longer about destroying tanks. It’s about strangling economies. Data centers, oil refineries, shipping lanes – these are the new targets. Low-cost drones make these strikes cheaper than ever. Brian Schimpf, CEO of Anduril, pointed this out at Brainstorm Tech. He noted the Strait of Hormuz blockage. This isn’t an anomaly; it’s the new blueprint. Economic warfare is the new normal.

The U.S. faces a unique challenge. Inflicting economic pain on China means catastrophic pain on ourselves. This reality shapes Anduril’s strategy. Supply chain fragility is a critical issue. The U.S. fired around 850 Tomahawk missiles in four weeks against Iran. This depleted a stockpile replenished at about 90 per year. We need to move beyond just manufacturing better weapons. We must secure raw materials. China’s grip on critical minerals like germanium, rare earth magnets, and copper film suppliers is a strategic stranglehold. The U.S. has been slow to counter this.

Anduril is looking at securing germanium supply years out. This proactive approach is essential. The current defense tech valuation frenzy is a distraction. Companies chasing hype are setting themselves up for failure. Anduril has been disciplined. Remaining private offers advantages. We’re in a hype cycle, growing rapidly. There’s no immediate need to go public. Going public during a hype cycle, with slowing growth, or more than two years from profitability, leads to poor stock returns. Anduril sees no rush.

Author bio: Reginald Vance, a venture partner specializing in semiconductor valuation and advanced materials.