Larsen stated, "I think that we are [in a defense tech bubble]," citing an "over supply of capital" paying "very, very high prices for things that may not pencil." He compares it to previous hype cycles (crypto, SaaS) where early investors succeed but late capital enters at inflated prices. Winners will emerge, but selectivity and price discipline are critical. WATCH because the sector is hot and topical, attracting excess capital which creates valuation risk. Investors must be highly selective about entry points and business model viability. Companies failing to justify high valuations; dependency on prolonged government budgets and procurement cycles.