Defense VC Backswing Ventures Rejects Unicorn-Dependent Fund Model
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Orlando, Fla. – September 11, 2026 -- Backswing Ventures, an early-stage defense venture capital firm, is underwriting every investment in its portfolio for an independent 3-5x return rather than betting the fund on a single breakout winner.
Carta data shows unicorn payouts are stalling, not disappearing
Among 2017 and 2018 vintage venture funds old enough to have realized outcomes, fewer than 20% have returned even 1x DPI to limited partners, according to Carta's Q1 2026 fund-performance data. Backswing argues paper valuations do not pay LPs back; distributions do.
SpaceX illustrates the timeline problem at scale. Founded in 2002, the company did not deliver a liquid outcome to shareholders until its initial public offering closed in June 2026 -- 24 years later.