Defense Tech and the $42 Billion Gap

This guide is Part 1 of TechnoMile's NatSec100 series, based on the full 2025 NatSec100 dataset, and is intended to provide a baseline view of the trends shaping the national security innovation ecosystem.

According to the Silicon Valley Defense Group's 2025 NatSec100, the top 100 venture-backed defense companies have raised $70.1 billion in private capital – yet collected only $28 billion in federal awards.

That $42 billion gap isn't a funding problem. It's a structural one.

The DoD has opened on-ramps. VCs believe they're early to a booming market. But defense tech companies are winning prototypes and burning cash while waiting for production revenue that never arrives on schedule. Same ecosystem – fundamentally different expectations.

Download our guide to understand what's driving the gap and what leaders should be doing now to avoid becoming part of it. With the 2026 NatSec100 now released, TechnoMile is preparing Part 2 of this series – building on this baseline to analyze what changed, who moved up or down the list, and what that means for investors, BD, and capture teams.