As Software VCs Chase SpaceX Alumni, A Defense Tech Veteran Warns Of ‘Tourists And FOMO’
Software VCs are flooding into hardware. A defense-tech veteran says most don't understand what they're buying.
Why it matters
As AI reshapes compute economics, venture capital is chasing industrial and defense hardware deals — but a seasoned operator warns that software investors lack the domain expertise to evaluate these bets, risking capital on 'FOMO' rather than fundamentals.
The key facts
9 to knowVan Espahbodi (Generational Partners) interviewed on AI-driven hardware investment trends
Software VCs pivoting to industrial technology and defense-tech startups
Espahbodi warns of 'tourists and FOMO' in the sector
AI cited as driver of hardware economics change
Interview frame: expertise gap between software and hardware investing
Van Espahbodi, Generational Partners, on AI's impact on hardware economics
Software VCs entering industrial technology sector
Defense-tech expertise gap: 'tourists and FOMO' warning
SpaceX alumni recruitment as draw for venture capital
Go to the source
Crunchbase Newsnews.crunchbase.com
Publisher excerpt: In an interview with Crunchbase News, Van Espahbodi, general parter at Generational Partners, discusses how AI is changing hardware economics, why software investors are rushing into industrial technology, and what he believes many of them misunderstand about the sector.