How Software Companies Can Enter the U.S. Defense Market

When U.S. software firms consider their primary markets, many largely avoid the defense sector. That’s true whether they are established tech companies or early-stage startups. The reasons are clear: Pentagon procurement has historically, and largely, focused only on the acquisition of physical supplies and equipment, yielding processes unsuited to software licensing. Bureaucratic challenges also frustrate companies because they lead to long sales cycles. And many tech employees have refused to work on defense projects, citing cultural and ethical concerns. With these challenges, funding through venture capital and other sources has been hard to come by for firms operating in or looking to expand into the defense market.

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