Veteran Ventures Capital's New Fund II Marks a Milestone in Defense

Veteran Ventures Capital Launches Oversubscribed $60 Million Fund II

At a Glance

• Fund Size: $60M, 20% oversubscribed — 3× Fund I
• Focus: Veteran-led, dual-use national security tech
• Market Tailwinds: Record defense budgets; surge in A&D IPOs/M&A
• Core Sectors: Space, counter-UAS & autonomy, quantum sensing, robotics, edge computing, AI/ML, cyber
• Capital Efficiency: $250M+ in non-dilutive funding secured by portfolio companies; Fund I achieved >10:1 leverage

Historic Momentum in Defense Spending

U.S. defense spending has reached unprecedented levels, exceeding $900 billion, with a substantial allocation for research, development, test, and evaluation. As budgets are projected to continue rising, investment is being funneled towards unmanned systems and advanced technologies. The surge in investment in space is becoming increasingly significant, as national security needs align with commercial opportunities, fueling innovation across the industry.

The capital markets reflect this dynamic shift with aerospace and defense transactions experiencing a substantial increase. In the first quarter, deal volume surged by approximately 20%, signaling a robust exit environment for sectors targeted by VVC.

Accelerating Demand for Dual-Use Technologies

For Veteran Ventures Capital, the moment is ripe for growth. As defense agencies ramp up resources for modernization, the demand for dual-use and mission-critical technologies skyrockets. Areas such as space situational awareness, in-space propulsion, and autonomous systems are not just buzzwords; they represent real opportunities that are critical for modern security needs.

Strong Investor Confidence Fuels Growth

Highlighting the fund's successful close is the enthusiastic support from a variety of institutional investors, including state partnerships and notable family offices. This diverse investor pool indicates a strong belief in the firm's business model, which leverages veteran leadership and operational expertise to maximize investment potential.

Commitment to Veteran-led Enterprises

According to Derren Burrell, Founder and Managing Partner of Veteran Ventures Capital, the firm has shown that strong, veteran leadership, combined with operational expertise, has generated significant returns while addressing pressing national security issues. The aim is to harness both private and government funding to speed up the development of vital technologies without diluting equity for the founders.

Experienced Leadership Driving Mission-Critical Investments

The partners at VVC possess vast experience, bringing a wealth of knowledge from military leadership and venture capital. This combination enables them to identify opportunities that can truly impact the defense industry. By cultivating a network of strategic contacts, VVC has the insight necessary to find and fund innovative technologies that serve both the U.S. and its allies effectively.

Portfolio Investments in High-Stakes Technologies

VVC is already deploying capital into ground-breaking companies addressing significant challenges in space, sensing, and defense infrastructure. Among the early investments is Agile Space Industries, focused on expanding U.S. capabilities in space propulsion systems. Another key investment is Turion Space, which utilizes a proprietary satellite architecture for enhanced imaging and situational awareness, proving to be a cost-effective solution for the U.S. Space Force.

About Veteran Ventures Capital

Veteran Ventures Capital is determined to back veteran-led companies pioneering technologies at the intersection of national security and commercial advantage. The firm, founded in 2019, combines military expertise with commercial acumen, striving to discover and scale technologies that not only promise competitive returns but also enhance national security.

With a commitment to delivering impactful results, VVC positions itself as a leading venture fund ready to tackle the challenges of today. By focusing on dual-use sectors of defense and technology, it aims to inspire innovation that fuels both military and commercial advancements.

Frequently Asked Questions

What is the primary focus of Veteran Ventures Capital?

Veteran Ventures Capital focuses on investing in dual-use national security technologies led by veterans.

How much did Veteran Ventures Capital raise for Fund II?

The firm successfully closed Fund II at $60 million, which was 20% oversubscribed.

What sectors does Fund II target?

Fund II targets industries including space, counter-UAS, robotics, AI/ML, and cyber technologies.

Who are some of the investors in Fund II?

Investors include institutional partners, state governments, family offices, and university endowments.

What role does veteran leadership play in VVC's strategy?

Veteran leadership provides unique insights and expertise, enhancing the firm's capability to back mission-focused companies effectively.

About The Author

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