Backswing Ventures Warns Defense Tech Valuations Are Outrunning Exits
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Orlando, Fla. – September 17, 2026 -- Mach Industries doubled its valuation to $3.7 billion in three months, up from $470 million a year earlier, as defense startup funding heads for a record 2026 even while exits remain scarce, according to Backswing Ventures.
Crunchbase data shows 2026 funding at record levels with few exits in sight
Crunchbase News reported this month that 2026 is on pace to be the largest year on record for defense startup funding. Backswing Ventures founder Kyle Asman said that surge is not matched by liquidity, since government sales cycles and dual-use commercial traction can take years to materialize into a sale or IPO.
"Raising money has never been faster in this sector," Asman said. "Turning that money into an exit is a separate problem, and a much slower one."