Iran war will be trial by fire for missile interception startups

The escalating war in Iran has placed a spotlight on one central element of the US and Israel's defenses: missile interception.

So far, the US's countermissile resources in the Middle East are holding up. But national security experts are already warning that the US arsenal of missile interceptors is not at full capacity and may not outlast Iran's missile stockpile.

"You're fighting these super cheap drones and missiles with interceptors that are 100x more expensive," said Jordan Blashek, GP at defense tech firm Overmatch VC. "During sustained engagements, enemies can begin to really bleed us dry."

The conflict in June 2025 between Iran and Israel put a dent in the US stockpile, which has yet to recover, according to a December report by the Center for Strategic and International Studies.

"The war will accelerate the winners," said Ross Fubini, managing partner at defense-focused VC XYZ Capital. And new startups pitching themselves "will get more ruthlessly compared to the new winners."

And, as in Ukraine, the war in Iran is likely to accelerate the introduction of new technologies on the battlefield, according to Blashek.

Anduril, a darling of the defense tech sector currently courting investors at a $60 billion valuation, is an obvious candidate. Anduril's products span the warfighting ecosystem, including key components of missile interception.

A 2023 acquisition of Adranos, a solid rocket motor manufacturer, positioned Anduril to supply multiple elements needed for intercepting missiles.