Source: Fortune
Summary
Brian Schimpf, CEO of defense tech company Anduril, spoke at Fortune’s Brainstorm Tech conference about the shift in modern armed conflict towards economic warfare. He emphasized that the US military’s supply chain is unprepared for this new reality, citing the example of the Strait of Hormuz blockade. Schimpf also discussed the fragility of the US supply chain, noting that the country burned through a stockpile of Tomahawk missiles in just four weeks of conflict with Iran. He proposed securing supply of critical materials like germanium and rare earth magnets to counter China’s strategic acquisition of these resources. Additionally, Schimpf expressed caution about the current defense tech valuation frenzy, suggesting that some companies are overvalued.
Our Reading
The numbers tell one story.
Anduril’s CEO is candid about the US military’s supply chain fragility, citing the example of Tomahawk missiles. He’s equally candid about the defense tech valuation frenzy, invoking the Uber-and-Lyft dynamic. The company’s deliberate pricing strategy is a notable exception in a hot category. Schimpf’s argument for staying private is simple: why go public in the middle of a hype cycle? The CEO’s 3-point framework for contemplating an IPO is a rare display of transparency. As the US military navigates this new reality, Anduril’s approach to supply chain security and valuation will be closely watched.
Anduril is playing the long game, and that’s exactly what the US military needs.
Author: Evan Null
