Veteran-Led Startups: Investor Mandate Interview with Doug
Military & Veteran Owned Small Business Investor Mandate Interview
Founders who are military veterans, and investors who want to see how a tightly focused angel mandate works.
What you will hear
Doug runs two funds that grew out of an angel network. They invest only in early stage companies led by military veterans, with no exceptions. The firm treats leadership, character and grit as the key issue. Portfolio companies range from coffee and ketchup to sensors, water mitigation and tech, and they sit across the country.
Because early stage companies have little financial history, the team puts most of its diligence on the founder's record of leading under pressure. Doug also describes picking a niche, which he calls a sandbox, to get dedicated deal flow. He encourages investors to do their own thing and not copy another group's success. Richard C. Wilson links this to his workshops on picking a sandbox.
Five points worth keeping
- One exclusive investment criterion. The firm invests only in companies led by military veterans and makes no exceptions. Army, Navy, Air Force and Marines backgrounds all count, and the focus is on leadership and character.
- Industry does not limit the mandate. Because the filter is the leader, the portfolio spans a coffee company, a ketchup maker, tech companies, a sensor company and a water mitigation company. The firm invests across the country.
- Diligence centers on the founder. Early stage companies have few financials to study. So the team digs into how the person performed when deployed, especially when things were hard or went wrong.
- Lead the deal and mentor. The firm almost always leads the deal. It puts a member of its membership on the board so it can work closely with and mentor the entrepreneur. It also does follow-on investments when it sees success.
- Pick a sandbox you care about. A clear niche brings dedicated deal flow and makes it easier to attract other investors. Doug says investors should find a sandbox they feel passionate about and not copy another group.
In their words
"we invest exclusively, never any exception, in companies led by military vets."
"only 1% of the population in the United States has ever served on active duty. A lot of Americans just don't know how good their military vets are."
"I would just encourage people to do their own thing and not try to just mimic the success that some other group has had."
On the record
- The firm operates two funds and grew out of an angel network.
- Only 1% of the US population has ever served on active duty, according to Doug.
- The firm almost always leads the deal and places a member of its membership on the company's board.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Military & Veteran Owned Small Business Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around fund structure options, board seat terms and offering documents. Do not use AI to write your own legal agreements.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What kind of companies does Doug's firm invest in?
The firm backs early stage companies led by military veterans and never makes an exception. The industry can vary, from coffee and ketchup to sensors, water mitigation and tech.
How does the firm evaluate early stage founders?
Most of its diligence goes into the leader, since startups have little financial history. The team looks at how the person performed when deployed and when things went wrong.
Does the firm lead deals or follow?
It almost always leads. It places a member of its membership on the board to mentor the entrepreneur, and it makes follow-on investments when it sees success.
Put this into practice with the ready to raise checklist. See all investor mandates resources.
