Moonshot Capital‘S Kelly Perdew AND Craig Cummings he successfully transitioned from a military profession to venture capital. Perdew won “The Apprentice” while working for Donald Trumpwhile Cummings earned a Bronze Star as NSA intelligence officer, becoming a very influential military veteran, entrepreneur. They attribute their success to the discipline and principles they have developed Army officer training. Their stories illustrate the untapped potential of military veterans in the VC industry.
Veterans bring a wealth of skills and expertise to the VC ecosystem. Their unique training, skills and experience are invaluable to many startups looking for capital. During their service, veterans often have direct contact with the latest technologies, thanks to which they gain unique insight into emerging trends.
However, the journey from military veteran to venture capitalist is not without obstacles. Veterans struggle with limited access to programs for underrepresented groups.
Other obstacles include difficulties in connecting with traditional investors unfamiliar with their military experience and challenges in raising funds for veteran-led venture capital firms.
Many veterans unfamiliar with the corporate sector need assistance in networking to raise funds from conventional sources comparable to institutional investors.
First steps
Several initiatives, some of them my organization VetsInTech is part of, goals to bridge this gap, ensuring a smoother transition from military service to the VC arena. Initiatives that provide veteran training camps, tailored mentoring programs, and opportunities to make meaningful connections help fill this gap.
The Nasdaq Entrepreneurship Center and his Venture capital project is a long-term coalition of academic and non-profit partners. The initiative focuses on understanding and addressing inequalities in venture capital, providing stakeholder-focused practices, and offering policy recommendations to remove barriers. The Venture Equity Project goals to increase the flow of capital to entrepreneurs and investors of color.
The Diversity Data Coalition is a collective of several nonprofit groups to which they belong Everyone lifts, BLACK VC, VC diversity, SomosVC, 2Gether-International AND StartOut. The coalition was formed to address the need for more diverse perspectives and the limited representation of marginalized groups in the historically homogeneous VC industry.
Its essential goal is to create a comprehensive, cross-sectional database of founders and funders in the VC community. The database will provide insight into funding trends and support equitable access to capital allocation for underrepresented founders. Military veterans, many of whom are minorities and have disabilities, could particularly profit from this initiative.
More resources
JP MorganProject Spark initially committed $25 million to the veteran VC community to close the funding gap for underrepresented executives and strengthen the veteran ecosystem in the alternatives industry. Project Spark goals to lead the industry in providing access to venture capital for the veteran community. Veterans can profit from access to resources needed to succeed at VC firms, including conferences comparable to VetVC Summit, investor meetings and insider events.
The SBA offers a useful program for veteran-owned small businesses, generally known as Veterinary certificate. The VA reserves at least 7% of its annual contracts specifically for veteran-certified small businesses (VOSBs) and veteran-owned small businesses (SDVOSBs) with disabilities. VOSB and SDVOSB can pursue these invaluable exclusive and set-aside contracts under VA’s Vets First program.
Some VCs who are military veterans have already left a significant mark on the industry. Except O’Connor Raj Shah With The Shield Capital was a successful serial entrepreneur before becoming a VC focusing on the defense industry. Matt Shortal, a former F-14 fighter pilot, is currently the company’s chief of staff Andreessen Horowitzone of the best VC firms in Silicon Valley.
VC military veterans enrich the VC ecosystem with their skills, experiences and perspectives. Investing in veteran-led businesses not only honors their service, but also makes good business sense, leading to greater diversity of thought and simpler investments.
Clarification: This story has modified since its original publication.