Scout Ventures Announces the Recent Close of $55M in Fund III Aimed to Close The Gap in Funding to Military Veteran Founders
Today, we are thrilled to announce the successful close of $55M in our third fund, which we aim to use toward further scaling frontier technology companies led by veteran founders. We’re proud to be backed by leading LPs that have helped us get one step closer to our goal of making the world a better, safer place by investing in frontier and dual-use technologies built by founders from the military, intelligence community, and premier research labs. These LPs include, but are not limited to, The New Mexico State Investment Council, former Chairman of Citigroup Richard Parsons, and publicly-traded Auctus Investment Group.
For decades, military veterans have been a vital part of the nation’s business sector, leveraging the valuable skills they gained during their service to start businesses across the country. However, that number is still vastly lower than it should be compared to past generations, with veteran entrepreneurship facing a generational decline.
Our world’s security infrastructure and sustainability rely on the unique skills and experience held by ex-military veterans and intelligence leaders, but many often don’t get the chance to implement those skills due to lack of access. At Scout Ventures, we’re paving the way for military veterans and intelligence professionals to participate in that innovation by helping founders access hundreds of millions in government grants and non-dilutive capital.
Our mission is to prove that military veterans and intelligence leaders excel at building organizations with technological innovation at their core. With this new round of funding, we’re one step closer to bringing success to the startups we invest in.
To date, we have made 20 investments from our third fund in areas ranging from AI and data science to cybersecurity, robotics, advanced materials, space, and quantum technology. We’ve also helped several of our portfolio companies achieve unicorn status, notably ID.me and Unite US, which was incubated out of Scout’s NYC office. Each investment reflects a thoughtful approach to market discovery and associated due diligence and supports our goal of making the world a safer, more accessible, and more sustainable place.
We found that backing companies with dual-use (defense and commercial) technology is a great way to both leverage government innovation spending, while reducing the risk associated with launching early stage ventures. Unsurprisingly, the founders of these dual-use companies tend to be veterans, prior government service members, and researchers. Additionally, we have a strong proprietary network within these communities of hard to access founders, which also tend to be underrepresented.
We have over 20 years of early-stage investing experience, including 2 previous funds that have had strong early exits, thus proving a full, lifecycle perspective on what is required to effectively nurture and counsel a company as it navigates through various stages of growth. We are beyond thrilled to see what this new round of funding brings for upcoming frontier technology startups.