MADISON, Wis.–TruStage™ Ventures, the venture capital arm of TruStage, said it is expanding the eligibility in its Discovery Fund portfolio to include veteran-founded startups.
Veteran-owned startups focused on fintech innovation can now apply for seed stage funding through the TruStage Ventures Discovery Fund, which was launched in 2021 to address inequities in the financial sector by supporting and investing in underrepresented entrepreneurs, the company said.
It noted that according to the Small Business Administration, veteran-owned businesses are on the decline, despite veterans being 45% more likely to start a business than non-veterans, partially due to less access to funding.
‘Underfunded Force’
“We recognize veterans as a powerful yet underfunded force in driving innovation and community-first solutions. This expansion is an exciting next step in our mission to back bold leaders who are shaping the future of financial services,” Elizabeth McCluskey, managing director of the Discovery Fund, said in a statement. “This will strengthen our ability to not only meet veterans’ financial needs but also empower veteran entrepreneurs to develop ideas and scale fintech solutions that can drive lasting economic impact for all.”
According to TruStage Ventures, over the past four years, the fund has invested in 25 early-stage startups, achieving a 100% survival rate, including three acquisitions, far surpassing the fintech industry’s survival rate.
The company said the track record has validated the Discovery Fund’s model and underscores a tremendous opportunity for ambitious veterans ready to apply their leadership skills in civilian entrepreneurship.
‘Often Overlooked’
“As a veteran myself, I can tell you that we are often overlooked and underfunded as entrepreneurs, despite our strong servant-leadership mindset and commitment to getting the job done,” Dennis Cail, a Navy veteran and co-founder of peer-to-peer lending platform Zirtue, said in a statement.
Zirtue was initially funded by the Discovery Fund and given its continued success, is now part of the larger TruStage Ventures portfolio.
“TruStage didn’t just invest, they opened doors, made strategic introductions, and empowered us to think long-term. Their early belief and ongoing support in our mission gave us the credibility and capital we needed to scale,” Cail added in a statement.
‘Strong Connection’
In addition, TruStage Ventures said there is a strong common connection between veterans and credit unions, and noted that not only does TruStage have relationships with 93% of credit unions, but it also has a strong partnership with military-aligned credit unions, including the Defense Credit Union Council, which is comprised of over 180 military credit unions.
“Meanwhile nearly a third of military personnel and veterans rely on credit unions for their primary financial services,” the company added.
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