U.S. veterans often make exceptional startup founders. During their service, they developed strong discipline, focus, adaptability, and problem-solving skills, and many were trained to lead teams. These qualities translate well into the startup world as veterans transition to civilian life. Notably, around 5% of startups raising through equity crowdfunding platforms (Reg CF and Reg A+ deals) have veteran founders. We examined the industries these founders are entering and how their ventures compare to the broader market.
- Among the 156 deals with veteran founders in the last 3 years, 16.6% were in the business technology industry, 10.8% in the media industry, and 10.8% were in healthcare. Non-veteran founders, in the other hand, launch more online rounds in the healthcare industry than in any other.
- Business tech—particularly software—is especially favored by veteran founders. For example, AtomBeam, an AI software company, stands out as one of the most successful in raising funds online.
- While food, beverages, and consumer packaged goods (CPG) startups are popular on equity crowdfunding platforms, veteran founders tend to focus on sectors like energy and transportation. Companies like Paladin Power and Starfighters Space have recently raised $5 million and $11 million (ongoing), respectively. Given their technical expertise and familiarity with the defense industry, which often awards grants to capital-intensive startups, it’s no surprise that veterans excel in these areas.
- Since October 2021, veteran-owned startups have raised an average of $746,000 online, compared to $483,000 for non-veteran-owned ventures. This higher average is largely driven by successes like Miso Robotics, which has raised close to $30 million across three online funding rounds.
