🇺🇸 The Veteran Fund Update: Q4 2024
As we kick off 2025 with an oversubscribed Fund I, The Veteran Fund team is focused on expanding our portfolio of critical technology companies led by US military veterans.
A renewed sense of optimism is driving innovation forward and reinforcing America's legacy of liberty. Based on the performance of our existing portfolio companies and the leadership of an incoming administration shaped by accomplished veterans, we see a powerful alignment between national security priorities and our mission to back exceptional veteran-led startups.
From Silicon Valley’s defense origins to today’s cutting-edge innovations, veteran leaders continue to secure America’s future and drive global progress. The Veteran Fund proudly supports 19 portfolio companies led by resilient, mission-driven veterans. Through our investment thesis, we uphold the principles of American exceptionalism and build a legacy of prosperity for generations to come. Looking ahead, the critical technology market offers unparalleled opportunities for innovation to drive meaningful returns and lasting impact.
We are excited and grateful to begin the new year with a strong foundation for growth. Let’s dive in.
🚀 New Investments
Hedgehog AI is building the future of AI network infrastructure. Their cloud network software empowers cloud builders to manage their own AI infrastructure, offering a cost-efficient alternative to renting GPUs from major cloud providers.
Hedgehog AI enables enterprises to operate with the efficiency and scale of leading hyperscalers like Microsoft, Google, and Meta, while reducing network congestion, packet loss, and network latency, which can degrade the AI user experience. Hedgehog AI aims to disrupt traditional data center networking by leveraging SONiC open networking, thus empowering enterprises to achieve data privacy, control their AI workloads and optimize AI network performance for their customers.
AeroFuse is revolutionizing aviation with its nuclear Fusion Propulsion System, a zero-emissions engine that combines nuclear fusion energy and jet turbine technology to reduce emissions, lower costs, and extend flight ranges.
While the market for nuclear propulsion matures, AeroFuse is leveraging its fusion technology for the medical isotope market, offering more efficient isotope production and positioning itself for significant market share. The company is also advancing Neutral Particle Beam technology for defense and Neutral Beam Injection for plasma heating in commercial applications.
Post-investment, AeroFuse secured a $1 million Development and Commercial Agreement with a classified defense contractor to develop an NPB ground demonstrator, marking the first step in a three-phase commercialization plan.
We are excited to welcome EMPEQ, the winner of the $100,000 Veteran Pitch Competition featuring Jason Calacanis, to The Veteran Fund's portfolio (watch the replay here).
EMPEQ is an AI-driven B2B SaaS company specializing in the identification and analysis of critical infrastructure equipment and parts. Founded by Marine Corps veteran Herbert Dwyer and Derek La Clair, the company addresses inefficiencies in traditional manual inspection processes, which are often error prone and labor intensive. EMPEQ's cloud-based platform uses advanced computer vision and AI to automate the identification, cataloging, and analysis of equipment, enhancing accuracy and efficiency. The company serves high-stakes industries such as defense and energy, with major clients including the U.S. Air Force, Siemens, and Johnson Controls.
📈 Portfolio Highlights
Firestorm Raises $25M Series A and Wins $100M Air Force Contract: Firestorm raised its $25 million Series A and received a $100 million Air Force contract centered on its flagship Tempest drone. The contract includes the delivery of drones, support services, and research and development efforts, aiming to integrate into various Air Force initiatives focused on drone swarm technologies. Firestorm was also recognized as a leader in national security and dual-use innovation on the prestigious Silicon Valley Defense Group (SVDG) NATSEC100 list. Firestorm was also honored to host Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy, to discuss the future of expeditionary manufacturing, highlighting Firestorm's innovations and national defense contributions. Read the article announcing Firestorm’s Air Force Contract here.
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Stitch3D Raises an Additional $1M: 2024 was a powerful year for Stitch3D. As it continued to expand its user growth and secure two new Air Force R&D contracts, Stitch3D placed in the top 5 out of approximately 3,500 companies at TechCrunch Disrupt’s Startup Battlefield. See CEO and Army veteran Clark Yuan’s pitch here, where he discusses how his time in Afghanistan inspired Stitch’s vision for LIDAR and data accessibility. In Q4, The Veteran Fund increased its investment into Stitch3D and welcomed Context Ventures to the cap table, bringing in an additional $1M investment into the company.
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Tern AI Presents to Presidential Advisory Board: Tern AI is capturing the attention of both commercial and government sectors with its innovative PNT (Position, Navigation, and Timing) solution (watch their demo video here). As GPS vulnerabilities like signal interference and cyber threats grow, Tern AI's non-GPS PNT technology is crucial for ensuring resilience and operational continuity in both civilian and military contexts. In 2024, Tern AI made headlines by being the only emerging tech company invited to present to the Presidential Advisory Board for PNT, where a planned 15-minute session stretched to 45 minutes due to keen interest, signaling strong potential for future collaborations. Tern AI is now seeking an internal “Director of Federal” to spearhead its Department of Defense strategy; please share any strong leads for this role.
🇺🇸 Featured Limited Partner: Han Kim
Han Kim is a US Army veteran and Managing Director of Altos Ventures. He attended Stanford University Graduate School of Business and United States Military Academy at West Point.
As a Managing Director and co-founder of Altos Ventures, Mr. Kim manages more than $10B in regulatory AUM. Drawing from his military background, Mr. Kim brings a disciplined and mission-driven approach to venture capital, helping portfolio companies scale efficiently while navigating challenges.
We are honored to include Han Kim as part of The Veteran Fund LP network.
📣 Announcements and Events
Jason Calacanis and GP Mike Sherbakov
The Veteran Fund featured on This Week in Startups
GP Mike Sherbakov was recently featured on Jason Calacanis' show, hosted by the renowned angel investor and host of the All-In Podcast. During the conversation, Mike shared insights about the unique skills and leadership qualities that veterans contribute to the startup ecosystem.
He also highlighted The Veteran Fund's mission of investing in early-stage, veteran-led companies driving innovation in critical technology sectors. This platform provided an incredible opportunity to spotlight the impactful work being done by veterans in tech and the growing success of The Veteran Fund. You can watch highlights of the conversation here.
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eMerge Veteran Pitch Competition
The Veteran Fund and eMerge Americas proudly present the inaugural SALUTE! Veteran Pitch Competition. On January 22, 2025, eight exceptional startups led by veterans, service members, first responders, and military spouses will pitch live online to top investors and industry experts. The top two will advance to the exclusive Veteran Accelerator and Showcase at eMerge Americas in Miami, March 27–28, 2025. Participants will compete for over $12,000 in benefits, showcasing their startups to nearly 30,000 global attendees, and gain unparalleled networking opportunities with leading investors, industry talent, and strategic partners. Learn more here.
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Military Veteran Startup Conference
The Military Veteran Startup Conference is one month away! Hosted by Context Ventures, this is the premier event for veteran startup founders and investors to build their networks, secure clients, and raise capital. Join The Veteran Fund team February 5-6 in San Francisco, CA. Register here.
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Apply to the FI Veteran and Military Family Accelerator
Our Founder Institute Veteran and Military Family Startup Accelerator kicks off on February 18, 2025. Any US veteran or military spouse interested in building a technology startup can apply and join the accelerator for free through our JPMorganChase scholarship. View the application and program details here: fi.co/veteran
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SDI Reception at SXSW
Austin, TX, has become a hub for defense innovation and space-related technologies. During SXSW, leaders from the space and defense sectors gather in Austin TX to scout new technologies, make connections and engage within the greater innovation ecosystem. The Veteran Fund is proud to sponsor an invite-only Space and Defense Innovation Reception on March 8th that brings innovators together for an exclusive event featuring forward-thinking leaders in the space and defense innovation sectors. Apply here.
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Lonestar’s Second Moon Launch (LPs Only): Join The Veteran Fund team for portfolio company Lonestar’s Freedom Launch, their second mission to the Moon on Feb 26th in Cape Canaveral. This includes a tour of the Kennedy Space Center and a viewing of the launch. This event is for LPs and portfolio companies only. Please reply back for details and registration.
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The Veteran Fund Annual LP Summit (LPs Only): We are thrilled to welcome our investors back to Las Vegas for our annual LP Summit January 30th - February 1st. It’s a full 2.5 days of exclusive fund updates, team building activities, and an opportunity for our incredible investor ecosystem to meet one another. We find that partnerships, collaborations and friendships always emerge from this annual gathering.
We enter 2025 with immense gratitude for your unwavering support and shared commitment to advancing liberty through innovation. Your belief in the bold, mission-driven leaders at the helm of our veteran-led startups inspires us to continue investing in technologies that strengthen our nation and drive economic growth.
With enthusiasm and purpose, we look forward to making this year one of transformative progress and shared success.
-Ryan, Lisa, Mike, and Justin
