Nikkei: IPOX® Founder Josef Schuster Comments on Resilient IPO Market for Defense Tech

A recent article by Japan’s largest financial newspaper Nikkei explores the rapid influx of capital into the defense technology sector, noting that the number of privately held defense-tech "unicorns" in North America has quadrupled since 2020 to reach 24 companies. Driven by heightened global geopolitical risks and ongoing asymmetric conflicts involving the U.S., Israel, and Iran, private firms developing autonomous and AI-driven defense systems, such as Anduril Industries, Shield AI, and Saronic, are currently achieving multibillion-dollar valuations.

The piece highlights a structural shift in modern warfare and defense procurement, where cost-effective, unmanned systems are becoming critical alternatives to expensive conventional military equipment. As private funding accelerates and traditional rocket motor supplies face shortages, the initial public offering market for defense technology is experiencing a notable surge in activity, with recent successful debuts like Swarmer and upcoming listings from AEVEX and Arxis this week.

IPOX® Founder Josef Schuster was featured in the article, providing insight into the underlying strength of this new wave of defense-linked public listings. He emphasized that the sector's unique, government-backed demand dynamics offer a degree of insulation from broader market fluctuations.

"Because it is less directly affected by stock market volatility, the IPO market in the defense sector is quite robust."

Read the full article by Kaori Yoshida on Nikkei (Japanese)

Disclosure: IPOX® is the subadvisor to the Rakuten Global IPO Fund, an actively managed fund offered to Japanese retail investors, and may have positions in respective companies.