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Homeland Security Technology: An Investor's Perspective

By Mark Levine
October 01, 2003

When you look at the financial sections of newspapers and magazines over the past few months, you get the sense that capital, entrepreneurs and technology innovators are flowing toward a new homeland security space ' a market in which the buyer is essentially one customer: the federal government.

There's no question that our security-conscious government has money to spend in these areas, during a time when a lot of traditional buyers aren't spending anything. So a military or homeland security play has understandable appeal now, and some defense contractors with low margins have been given high valuations. But if hordes of investors and start-ups expect to make a meal out of the federal market, many of them are going to learn a hard lesson.

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