Corporate venture capital funds are expanding significantly. Prime CapEx investment is up roughly 35% for 2026. Compensation ceiling tensions, subcontracting relationships, and M&A activity are all shifting as traditional defense contractors respond to a changed competitive landscape.
SVDG Take
Not all primes are created equal, but significant CVC growth and CapEx increases are real signals. The pressure applied to these companies with the greatest capacity to deliver at scale by the administration has forced change.
Future Success Signals
Growth in subcontracts flowing to NatSec100 companies from traditional primes.
CVC investments translating into meaningful commercial relationships
Evidence of primes successfully integrating non-traditional technology at program scale.
Shared test and evaluation facilities for non-traditionals