They ran tea shops and podcasts. Now they're in the arms trade.
Entrepreneurs and tech founders are in a mad gold rush to build the next generation of bombs, missiles, and drones.
In May 2025, Toru Tokushige, CEO of Terra Drone, received a surprise visit from Manabu Shimamoto, a retired major general. Shimamoto urged Tokushige to help Japan secure its future by entering the arms trade. Tokushige, whose company has been solely civilian since its inception in 2016, had previously declined to pursue the military side of the industry due to its complexity and bureaucratic red tape.
However, the defense ministry's call for new companies to enter the fray prompted Tokushige to reconsider. Meeting with Shimamoto, Tokushige decided to become a defense contractor, determined to revolutionize Japan's arms industry.
The landscape of defense startups has changed dramatically in recent years. A decade ago, most startups relied on limited grants and programs to enter the market. Now, military agencies are actively seeking out entrepreneurs, hosting pitch days, and offering incubator programs. In December 2024, the Department of Defense launched the Expedited Research Innovation System, inviting startups to submit 7-minute pitch videos to the military. In just one year, 153 companies have been vetted and introduced to the government.
Tokushige aims to become the top interceptor drone maker in Japan and sees potential in Ukraine's booming drone industry. He recounts his visit to Lviv, Ukraine, where he attended a defense conference at a local soccer stadium and was impressed by the speed of drone production compared to Japan's goals. The shift in attitudes towards the defense industry is evident, as tech entrepreneurs who previously would have faced stigma are now celebrated for their contributions.
Five veterans from various countries, who had no prior military contracting experience, share their experiences of pivoting their careers to build defense firms. They believe in the industry's potential and its alignment with their fast-paced, innovative approach. Tokushige himself is confident that the business of war represents the next world-changing trend and aims to be the "Elon Musk" of Japan's defense industry.
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