Why Defense Tech’s Fastest Movers Benchmark with Pave

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Meet the NatSec100

The NatSec100 is published by Silicon Valley Defense Group (SVDG), a nonprofit that connects startups, investors, and the defense community. SVDG traces its roots to 2015, when Senator John McCain asked tech and finance leaders to help bridge Silicon Valley and defense. Its mission: "Create the nexus of pioneering ideas, people, and capital that will unlock new sources of innovation for national security."

Produced in collaboration with J.P. Morgan and now in its fourth year, the NatSec100 takes the pulse of the emerging defense technology ecosystem. It ranks venture- and private-equity-backed companies on growth, capital formation, and operational traction.

A new kind of company needs a new kind of benchmark

NatSec100 companies operate in a category that was not established at scale a decade ago. They hire cleared program managers like prime contractors, software engineers like late-stage startups, and technicians like manufacturers, often within the same quarter.

This combination challenges traditional benchmarking. Clearance premiums, government contracting requirements, and specialized engineering roles do not align with typical product organizations. Comparing them to broad Technology or Manufacturing data often yields unreliable results.

Don't miss the Big Tech blind spot

The most frequently benchmarked role by A&D companies in Pave Market Data is software engineering, not aerospace engineering. Aerospace engineering ranks ninth, following roles such as mechanical engineering, hardware engineering, business development, and product management.

As a result, their competition for talent extends beyond other defense companies to Big Tech and well-funded startups seeking the same engineers. Companies that benchmark only against sector peers risk losing candidates without understanding the cause, especially in a sector where ManpowerGroup research shows attrition is twice the U.S. industry average.

Equity is the edge

Venture-backed defense companies often cannot match Big Tech’s cash compensation. They use equity to bridge the gap and provide employees with a meaningful stake in the mission. Success requires understanding current market practices for new-hire grants, refreshes, and vesting, rather than relying on outdated surveys.

Equity benefits extend beyond engineering teams. As more companies establish their own production lines, evidence indicates that broad-based equity also benefits factory employees. A study of over 41,000 OSHA injury records found that stock options for rank-and-file employees reduced workplace injury rates.

Pay decisions at the speed of the market

Operating at NatSec100 speed requires making compensation decisions based on current market data, not outdated survey results.

Pave Market Data provides real-time benchmarks from over 9,000 participating companies, sourced through persistent HRIS, ATS, and equity system integrations. A dedicated Aerospace & Defense industry filter lets teams benchmark against direct talent competitors, while cross-industry benchmarks show how the same roles are compensated at Big Tech.

Each benchmark displays its sample size, modeled figures include confidence scores, and individual company data remains confidential. This ensures compensation leaders can confidently present data to the CEO, board, and candidates considering multiple offers.

Defense tech is hiring from the same talent pool as AI leaders like Databricks and Lambda, which run compensation on Pave. As Steve Chang, Lambda's Head of Compensation, puts it: "It makes the comp team so much more credible to have an actual platform."