VC funds have 10-year timelines but defense programs of record take 15-20 years to reach full production

Venture capital funds typically have 10-year lifespans with returns expected by year 7-8. Defense programs of record from initial concept to full-rate production take 15-20 years. A VC-funded defense startup that enters a major program as a subcontractor will not see meaningful production revenue until after the VC fund has been forced to exit. This timeline mismatch means VCs push defense startups toward faster-return commercial pivots or early acquisition, both of which reduce the startup's defense impact. This persists because defense acquisition timelines are driven by testing, certification, and political cycles that cannot be compressed, while VC fund structures are constrained by LP agreements that cannot be extended.