The experience I had with this was related to a seed round, where the multiple they were taking a bet on in a seed investment would be akin to that of the expec

The experience I had with this was related to a seed round, where the multiple they were taking a bet on in a seed investment would be akin to that of the expectation of a venture round (10x-30x+) over 5-7 years. I'd be interested in the later stage VC case for investing in a defense startup whose main out is to be acquired by a behemoth that has all the regulatory, support, cleared staff, and certification facilities to get on the necessary procurement vehicles to realize revenue. Speculatively, without defense contract revenue, the acquisition math seems like acquihire numbers and some IP, which is in the low mid eight figures range, so it implies a ceiling on the best case for a $5m-$10m VC investment unless you have the most valuable patents on the planet. That said, a "breadth first" fund (my word) that puts small amounts in at early stages may want the exposure and participation for other strategic reasons, such as the ventures arm of some defense contractors having a mandate to bring startups in with them on their large bids, or a fund with other portfolio companies who would also benefit from the defense oriented tech and access to your channel. My experience is (n=1) limited and speculative, but I've also worked for security and cryptography companies where the procurement vehicle thing was an issue, and have to think this through a while ago, and that's what I can add. Please don't let me mislead you, etc.