A newly emerging financial architecture, combining state-backed funds with other sources of capital, could address the shortfall in defence spending.
Traditional venture capital models are not effective for defence, despite a shift in investor perception from "taboo" to necessity after the invasion of Ukraine.
However, challenges remain, including long timelines, a small customer base, and high risks.
Traditional venture capital models don’t work for defence.
Author's summary: Blended capital addresses defence spending shortfalls.