Katherine Boyle

So there's this whole category of tier one suppliers that are building up the defense industrial base, working with the primes and working with the new primes like SpaceX and Palantir and Anduril.

It is incumbent upon these young founders, these very technical founders, to be able to build as quickly as possible, but really to focus on production.

My focus as an investor, there's a lot of companies that are focused on just building software.

I'm really focused on the SpaceX-like companies that are building for mass production, that understand that, as Elon says, the best part is no part.

simple, simple design for manufacturing so that we can go from one to 10 to 10,000 to 100,000 of something that's critical.

And that is going to come from startups.

It's a new methodology of how you build.

Oh, for so many reasons.

I mean, one is they are based on a set of requirements.

They have been building for a set of requirements for many, many years.

Oftentimes, they're getting paid per hour.

They charge per hour.

They're not on fixed price contracts.

They're on cost plus contracts where it's the amount of engineering hours that you do on a product plus a fixed margin, which is a terrible incentive for any company.

If I'm saying, okay, I'm going to

you know, paint your house or mow your lawn and you're gonna pay me per hour.

I'm gonna take all day.

But if I actually judge the project and say, it's gonna cost however many dollars it does to paint this room, like I'm gonna wanna make sure that I, you know, budget it right, that I, you know, get the cheapest paint, right?

Like, so it's the way that capitalism works outside of every other system except the DoD is that you have fixed price, fixed firm, fixed price contracts where you know what something's gonna cost you.

And if it goes over budget, the risk is on the company, not on the government.