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Explainers

Plain-language breakdowns of the terms, mechanisms, and programs that come up when researching defense tech — the kind of context that usually gets assumed rather than explained.

July 25, 2026

Defense tech funding and contracts roundup: July 2026

Quantum Systems' $1.2B Series D at an ~$8B valuation, a first-ever Navy Vessel Construction Manager award, and paired $798M/$955M Space Development Agency satellite contracts — the funding and contract activity recorded in the index for July 2026.

July 12, 2026

Defense tech funding and contracts roundup: June 2026

SpaceX's $75B IPO, Series C and Series E rounds for Mach Industries and Relativity Space, and a new HawkEye 360 contract — the funding and contract activity recorded in the index for June 2026.

July 11, 2026

ITAR vs EAR: export control basics for dual-use startups

Whether a technology falls under ITAR or EAR changes who a company can sell to, hire, and share technical data with. Here's the distinction, in plain terms.

July 9, 2026

Why defense tech valuations lag traditional SaaS multiples

Defense tech companies with strong revenue growth are still often valued at lower multiples than comparable SaaS companies. Here's why that gap exists structurally, not just perceptually.

July 6, 2026

How to read a Series A term sheet in defense tech

Defense tech term sheets look like any other Series A term sheet on the surface, but a few terms deserve extra scrutiny given the sector's longer, government-dependent revenue timelines.

July 1, 2026

EU vs US defense procurement, compared

The US and EU fund and buy defense capability through structurally different processes. Here's what actually differs, beyond just 'the US spends more.'

June 25, 2026

What is PESCO, and how does it relate to EDF and EDIRPA?

PESCO predates EDF and EDIRPA and works differently — it's a framework for joint capability projects between member states, not a funding instrument in the same sense.

June 19, 2026

How IDIQ ceilings work, and why they're not guaranteed revenue

An IDIQ contract ceiling and an IDIQ contract's actual task-order revenue can differ by an order of magnitude. Here's the mechanism, and how to tell the two apart.

June 16, 2026

Why some VCs won't touch defense-only startups

Generalist VCs that will fund a dual-use company often pass entirely on a defense-only one. The reasons are structural, not just about risk appetite.

June 11, 2026

SBIR Phase I vs II vs III: what actually changes at each stage

An SBIR award gets reported as a single category, but Phase I, II, and III mean very different things about how far along a technology actually is.

June 2, 2026

Defense tech funding and contracts roundup: May 2026

A $30B Golden Dome prime contract for SpaceX, a $5B Anduril subcontract, and three more DoD and Space Force awards — the contract activity recorded in the index for May 2026.

June 2, 2026

What is an OTA prototype agreement, and how is it different from a production contract?

OTA prototype agreements are how most non-traditional defense companies land their first DoD contract. Here's what they actually commit the government to, and what happens after.

May 19, 2026

What counts as "dual-use" technology in defense tech investing

Dual-use gets used loosely to describe almost any defense-adjacent startup. Here's a sharper definition and why the label matters for investors and founders.

April 28, 2026

How to read a defense tech cap table: rounds, ownership, and 'estimated' figures

What a cap table actually tells you about a company, how round-by-round history works, and why some ownership figures are labelled 'estimated' rather than exact.

March 17, 2026

DoD contract vehicles explained: IDIQ, OTA, and SBIR/STTR

What IDIQ, OTA, and SBIR/STTR actually mean for a defense tech startup, and why the vehicle matters as much as the award amount.

February 3, 2026

EDF, EDIRPA, and EDIS explained: how the EU's defense programs differ

A plain-language breakdown of the European Defence Fund, EDIRPA, and EDIS — what each one actually does, who it funds, and how they fit together.