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Defense Innovation Ecosystem Report (PDF)

Dear Friends,

We are pleased to share with you our team’s analysis of active trends shaping the defense innovation ecosystem.

The US National Defense Strategy calls for a “broad and deep change in how we produce and manage military capability”. A key component of driving this change includes adapting and fortifying our defense innovation ecosystem with an emphasis on private sector collaborations – specifically with contractors, investors, and the broader early-stage technology start-up sphere. Properly resourcing the founders building and integrating critical and emerging technologies for the DoD is paramount for immediate national security concerns and contesting strategic geopolitical threats.

In the report we cover new motions from a top-down perspective, including RDT&E appropriations, traditional and non-traditional funding programs, and fast-growing interest from private sector investors and strategic acquirers – particularly with earlier-stage businesses than the market has ever witnessed. Additionally, the report discusses growing advisory needs (capital raise, M&A, strategy) from founders currently navigating the rising complexities of the defense innovation ecosystem.

We welcome your thoughts and look forward to hearing from you.

Sincerely,

KAL Capital Markets team