As Software VCs Chase SpaceX Alumni, A Defense Tech Veteran Warns Of ‘Tourists And FOMO’ – Crunchbase News

As Software VCs Chase SpaceX Alumni, A Defense Tech Veteran Warns Of ‘Tourists And FOMO’  Crunchbase News

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. Van Espahbodi has spent 25 years working in and around advanced technology for the aerospace and defense industry. He began his career as a congressional staffer before joining defense contractor Raytheon, where he worked in the CEO’s office on foreign military sales. He later helped commercialize technology from a national laboratory in the U.K. A decade ago, Espahbodi co-founded aerospace and defense startup accelerator Starburst Aerospace and moved back to the U.S.

to expand it. On the advice of friends at Founders Fund, he opened an office in El Segundo, California, near SpaceX, just as more alumni of that company were leaving to launch hard-tech startups of their own and next-generation defense startups including Anduril Industries were emerging. Espahbodi eventually sold his stake in Starburst and launched Generational Partners, which invests in companies spanning industrial infrastructure, manufacturing, energy and water desalination. The firm has backed 14 companies since making its first investment in January 2023. He also advises federal agencies on working with nontraditional, venture-backed companies. In an interview with Crunchbase News, he discusses how AI is changing hardware economics, why