Deal Dive: AI’s not the only sector dodging the funding slowdown

A tougher fundraising environment reveals which companies and sectors investors have real conviction in, and which areas aren’t attractive outside of a bull market. AI startups dominated dealmaking this year, but there is another sector that VCs have stayed committed to: defense tech.
We saw the latest example of this trend just this week. On Tuesday, Shield AI raised a $200 million Series F round led by Thomas Tull’s US Innovative Technology Fund, with participation from Snowpoint Ventures and Riot Ventures, among others. The round values the San Diego–based autonomous drone and aircraft startup at $2.7 billion.
The sheer …