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4 July 2025 – The Veteran Fund, a venture capital firm founded and operated by military veterans, is raising $50 million for its second fund to support early-stage startups led by fellow veterans. The fund, dubbed Veteran Fund II, will focus on dual-use technologies—solutions that serve both commercial markets and U.S. government defense needs.
💼 Strategic Investment Focus
The fund aims to bridge the gap between innovation and national security by backing companies with strong commercial viability and potential for federal contracts. A $20 million first close is expected around Veterans Day in November, with commitments from existing limited partners and interest from new family offices.
🚀 Defense Tech Momentum
The fundraising effort coincides with a surge in venture capital interest in defense and national security startups. Notably, Voyager Technologies went public in June with a $1.9 billion market cap, underscoring the sector’s growing appeal.
🧭 Veteran-Led Advantage
General Partners Ryan Micheletti and Mike Sherbakov emphasize the fund’s unique mandate: exclusively backing veteran founders. They argue that military experience instills leadership, discipline, and resilience—qualities essential for startup success. “We want someone who’s raised their right hand,” Sherbakov said, referencing the values of service and commitment.
🔗 Portfolio and Expansion Plans
Building on the success of its $20 million inaugural fund, Veteran Fund II will write larger checks and pursue follow-on investments. Current portfolio companies include:
- Firestorm: 3D-printed weaponry for the U.S. Air Force
- HavocAI: Unmanned maritime vessels for defense applications
🏛️ Connecting with Washington
The fund also plays a strategic role in helping startups navigate the complex federal procurement process. Sherbakov noted that securing government contracts requires extensive due diligence, making the dual-use model essential for long-term viability.
Excerpts from article By Michael Bodley on Pitchbook
