Defense Tech Shakeout Looms: Anduril’s Trae Stephens Sounds the Alarm

(SeaPRwire) –   By: Robert Sterling, Overseas Entrepreneurial Veteran

Trae Stephens of Anduril believes innovation demands taking stands. After 9/11, he delved into foreign policy, joined the intelligence agency, and later Palantir and Founders Fund. In 2017, he founded Anduril, now a defense behemoth with soaring revenue, contracts, and a high valuation.

However, Stephens isn’t overly optimistic. Mid-stage defense tech companies trade at absurd multiples compared to the industry. Founders’ ego-driven refusal of discounted acquisitions will likely lead to many failing, which isn’t good for the long run.

He credits the government for learning, like with new procurement agreements and budget requests. But venture capital’s pricing of the defense opportunity is off. There’ll be a few new players, and the rest? Just noise.