Matthew Steckman: A substantial US business is critical for defense viability, the importance of GTM experience in navigating procurement, and the pitfalls of overestimating the defense market | 20VC

Securing a $20 billion contract, Anduril Industries highlights the critical role of US defense market dominance.

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Add us on Google by Editorial Team Mar. 23, 2026

Key takeaways

• A substantial US business is crucial for the viability of a defense company.
• Successful defense teams require a mix of diverse backgrounds and inside knowledge.
• Go-to-market (GTM) experience is critical for navigating procurement processes in defense.
• A multidisciplinary approach is essential for successful defense procurement.
• Many emerging defense companies fail to recognize pre-existing solutions.
• Overestimating the addressable market is a common issue for defense startups.
• The US market accounts for 50% of global defense spending, highlighting its importance.
• The $20 billion contract is a credit limit, not guaranteed funds, for future spending.
• Government confidence in a company’s capabilities leads to sophisticated contracting vehicles.
• The company is positioned to generate a couple billion in revenue, small compared to giants like Lockheed.
• Understanding government contracts and the scale of operations is key in the defense industry.
• Innovation in defense often requires acknowledging existing solutions since the 1950s.
• Realistic market assessments are critical for business strategy in the defense sector.

Guest intro

Matthew Steckman is the President and Chief Business Officer of Anduril Industries. He played a central role in securing Anduril’s $20BN contract with the US military. Prior to Anduril, he served as Chief Revenue Officer for Zipline and held several leadership positions at Palantir.

The importance of a substantial US business in defense

• You basically can’t have a defense company if you don’t have a large US business.

  — Matthew Steckman

• The US accounts for 50% of global defense spending, making it a crucial market.
• Companies need to engage with the US market to ensure viability.
• Government perception plays a significant role in defense contracts.
• A large US business is a critical requirement for success in defense.

• The government thinks that we can deliver some pretty major stuff now and in the future.

  — Matthew Steckman

• Engaging with the US market is necessary for securing significant contracts.
• The scale of operations in the defense industry is heavily influenced by US involvement.

The blend of backgrounds necessary for defense success

• Successful defense teams require a mix of diverse backgrounds and inside knowledge.

• One of the most important things in defense is some of them can be outsiders and you know brilliant technologists and thinkers.

  — Matthew Steckman

• Internal understanding is crucial alongside external innovation.
• Navigating the complexities of the market requires varied expertise.
• A multidisciplinary approach is essential for successful defense procurement.

• If you’re missing any of the 12 different types of disciplines it takes to really capture a large program you will fail.

  — Matthew Steckman

• The defense industry demands a comprehensive skill set for project success.
• Missing key disciplines can lead to failure in defense projects.

The significance of GTM experience in defense

• GTM experience is critical for teams to effectively sell and navigate procurement processes.

• One of the things I most look for honestly is like GTM experience and ability in a team that I’m looking at in defense.

  — Matthew Steckman

• Commercial acumen is often overlooked in favor of technical expertise.
• Understanding go-to-market strategies is vital in the defense industry.
• GTM experience aids in navigating complex procurement processes.
• The defense sector requires both technical and commercial skills for success.
• Effective sales strategies are crucial for defense companies.
• GTM experience helps bridge the gap between innovation and market needs.

The pitfalls of overestimating the defense market

• Overestimating the addressable market is a significant issue for many defense startups.

• There’s many cases in overestimation of addressable market.

  — Matthew Steckman

• Realistic market assessments are critical for business strategy.
• Many companies pursue a small sliver of a problem, overestimating their market.
• Understanding market dynamics is essential for sustainability in defense.
• Addressable market overestimation can lead to strategic missteps.
• Accurate market analysis is crucial for defense startups.
• Market assessment errors can impede business growth in the defense sector.

Recognizing existing solutions in defense innovation

• Many emerging defense companies fail to recognize that their ideas may already exist.

• It’s not realizing that what they are doing already exists.

  — Matthew Steckman

• Innovation often requires acknowledging existing solutions since the 1950s.
• The defense sector has a long history of technological development.
• Recognizing pre-existing solutions is crucial for true innovation.

• There’s kind of a hubris to thinking like the technology sector has all the answers.

  — Matthew Steckman

• Acknowledging historical context is important in defense innovation.
• Existing solutions should be considered when developing new technologies.

Understanding the $20 billion contract

• The $20 billion contract represents a credit card limit for future spending, not guaranteed funds.

• Think about this as like a credit card limit.

  — Matthew Steckman

• The contract allows for up to $20 billion in spending on Anduril’s technology.
• Government spending mechanisms are often misunderstood.
• The contract structure provides flexibility for future projects.
• Understanding defense procurement processes is essential for interpreting contracts.
• The contract signifies government confidence in Anduril’s capabilities.
• The credit limit approach allows for scalable project engagement.

Government confidence and sophisticated contracting vehicles

• The government is willing to create sophisticated contracting vehicles for significant value delivery.

• The government thinks that we can deliver some pretty major stuff now and in the future.

  — Matthew Steckman

• Government confidence leads to complex contract creation.
• The relationship between government and companies is based on perceived value.
• Sophisticated contracts reflect the government’s trust in a company’s capabilities.
• The contracting process involves significant effort from both government and company sides.
• Government confidence is crucial for securing large contracts.
• The creation of contracting vehicles is a testament to a company’s potential impact.

Revenue positioning in the defense industry

• The company is positioned to generate a couple billion in revenue this year.

• Lockheed is in the like $100 billion revenue a year… we’ll do a couple billion in revenue this year.

  — Matthew Steckman

• The company is small compared to major players like Lockheed.
• Understanding revenue figures helps gauge market positioning.
• The company’s scale is modest in the grand scheme of the defense industry.
• Revenue comparisons highlight the competitive landscape.
• The company’s growth potential is significant despite its current size.
• Market positioning is crucial for strategic planning in defense.

The role of government perception in defense contracts

• Government perception plays a significant role in defense contracts.

• The government thinks that we can deliver some pretty major stuff now and in the future.

  — Matthew Steckman

• Perception influences the scale and nature of contracts awarded.
• Companies must align with government expectations to secure contracts.
• Government confidence is a key factor in contract negotiations.
• Understanding government priorities is essential for defense companies.
• Perception impacts the likelihood of securing sophisticated contracts.
• Aligning with government goals enhances contract opportunities.

The complexity of defense procurement

• Successful defense procurement requires a multidisciplinary approach.

• If you’re missing any of the 12 different types of disciplines it takes to really capture a large program you will fail.

  — Matthew Steckman

• The complexity of procurement demands varied expertise.
• A comprehensive skill set is crucial for project success.
• Navigating procurement processes requires understanding multiple disciplines.
• The risk of failure is high without a multidisciplinary approach.
• Defense procurement is a complex and demanding process.
• Companies must integrate diverse skills to succeed in procurement.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.