I believe the above commenter was being hyperbolic, but plenty of government money has supported private industry. That's not just defense contractors, either. Where would Silicon Valley be without ARPANET?
So when I say "literally all", I'm exaggerating -- but only slightly. Not every dollar in the fucktons of VC money sloshing around out there can be traced back to defense funding, but an awful lot of them can.
Where would ARPANET be without the discovery of electricity or the massive railroad expansion throughout the US that resulted in a large telegraph network? It's pretty stupid to tie the valley to one particular invention supported by the government when it depends on essentially all of history until this point.