The venture capital landscape is increasingly recognizing the strategic importance of specialized funds, particularly those at the nexus of national security and innovative entrepreneurship. One such trailblazer is Derren Burrell, founder and managing partner of Veteran Ventures Capital, a firm dedicated to investing in veteran-led companies that are developing dual-use and national security technologies. This spotlight, part of the National Venture Capital Association’s (NVCA) “Meet a VC” series, delves into the unique perspectives and convictions driving Burrell’s mission, highlighting a profound belief in the untapped potential of veteran entrepreneurs and the critical role of private capital in fortifying America’s security, industrial resilience, and technological competitiveness.
From Public Service to Private Capital: A Strategic Evolution
Derren Burrell’s journey into the intricate world of venture capital deviates significantly from conventional paths. His foundation was forged over 21 years of distinguished service in the United States Air Force, where he retired as a lieutenant colonel. His extensive military career encompassed a diverse array of high-stakes assignments, including postings at the Pentagon, deployments in Iraq and Afghanistan, and critical roles within the White House Communications Agency. These experiences were far from purely operational; Burrell was entrusted with managing complex financial, operational, and contracting responsibilities, overseeing billions of dollars in resources that underpinned global missions. This crucible of experience instilled in him an unparalleled understanding of how rigorous processes, meticulous administration, and decisive leadership can transform strategic plans into tangible outcomes, even under the most extreme pressures.
These invaluable lessons proved directly transferable to the private sector. Following his military retirement, Burrell transitioned to TAG Resources, where he played a pivotal role in scaling the business, navigating a significant acquisition, and ultimately delivering substantial returns to its owners. This firsthand experience in operational discipline and strategic growth in a commercial setting solidified his understanding of how enterprise value is built. More critically, it illuminated a significant market opportunity that was largely overlooked by the broader venture ecosystem. Burrell observed that veterans, by virtue of their military training and experience, possessed a unique preparedness to establish and lead companies in complex, mission-oriented markets. They had honed skills in team leadership, resource management, high-pressure execution, and strategic decision-making in environments where stakes were consistently high. Yet, despite these demonstrable capabilities, veteran entrepreneurs remained conspicuously underrepresented in the venture capital community.
It was this realization that spurred the creation of Veteran Ventures Capital. The firm was conceived not as a philanthropic endeavor, but as a robust, returns-driven investment strategy designed to bridge this identified gap. As Burrell articulates, “We believe veteran founders and veteran leaders are an underappreciated asset class within venture. We are not a charity or an affinity fund. These founders can make a real impact. You just have to back them.” This conviction underscores the firm’s thesis: that investing in veteran-led companies is not merely a patriotic gesture, but a sound financial strategy poised to yield significant returns while simultaneously addressing critical national priorities.
The Strategic Imperative: National Security as an Innovation Ecosystem
Burrell’s extensive public service experience profoundly shaped his understanding of the symbiotic relationship between government, nascent startups, and private capital in the context of national security. He posits a paradigm shift: “National security is not just a government function. It is increasingly being shaped by private-sector innovation, capital markets, and the speed at which we bring technologies to the field.” This perspective is particularly pertinent in an era defined by rapid technological advancements and intensifying global geopolitical competition.
The traditional defense industrial base, while robust, often struggles with the agility and speed required to integrate cutting-edge innovations developed by startups. Technologies emerging from the entrepreneurial ecosystem are fundamentally reshaping how the United States approaches defense, deterrence, resilience, and industrial strength. Government agencies, including the Department of Defense (DoD), and established defense contractors are increasingly turning to entrepreneurs for breakthroughs in critical areas such as autonomy, space technologies, cybersecurity, advanced manufacturing, quantum computing, and other strategically vital sectors. This shift reflects a growing recognition that disruptive innovation often originates outside traditional government R&D channels.
Venture capital plays an indispensable role in accelerating these innovations from conceptualization to deployment. It provides founders with the essential resources to assemble high-caliber teams, refine proprietary technologies, establish scalable production capacities, and ultimately build durable companies capable of serving both government and commercial customers. For Burrell, private capital is not a substitute for government investment but rather a powerful, complementary force that can significantly accelerate the development and deployment of solutions addressing genuine mission needs.
Veteran Ventures Capital’s initial fund stands as a testament to this model’s efficacy. It successfully backed 15 companies, which collectively secured nearly $300 million in non-dilutive funding, augmenting the firm’s equity investments. This impressive ability to strategically pair private capital with government programs—such as Small Business Innovation Research (SBIR) grants, Small Business Technology Transfer (STTR) programs, and direct DoD contracts—validated the firm’s innovative approach. The success of its first fund directly paved the way for the launch of a second fund, which is three times the size of its predecessor, signaling strong investor confidence in VVC’s dual-pronged strategy. These results underscore the potential when investors possess a deep understanding of both sides of a complex market: the mission-critical requirements of the government customer and the commercial realities inherent in building a scalable, profitable company.
Veteran Entrepreneurs: An Underestimated Asset Class
The core thesis of Veteran Ventures Capital rests on the conviction that veteran entrepreneurs represent a largely undervalued asset class within the venture ecosystem. According to the U.S. Small Business Administration (SBA), veterans are 45% more likely to be self-employed than non-veterans, yet they often face unique challenges in accessing capital. While they possess unparalleled leadership, problem-solving, and execution skills forged in demanding environments, many traditional venture capital firms lack the nuanced understanding to properly assess and support them.
Veteran Ventures Capital seeks to rectify this imbalance by actively identifying and backing companies with meaningful veteran representation in leadership and ownership. This isn’t merely a preference; it’s a strategic imperative rooted in the belief that military experience, when embedded directly within the decision-making team, provides a distinct operational advantage. Veterans bring a unique combination of discipline, resilience, strategic foresight, and an innate ability to operate effectively under pressure. These attributes are crucial for navigating the inherent uncertainties and challenges of startup growth, particularly in complex sectors like national security tech.
The economic impact of veteran-owned businesses is substantial. Data from the U.S. Census Bureau indicates that veteran-owned businesses contribute significantly to the national economy, employing millions and generating billions in revenue. By channeling capital to these enterprises, Veteran Ventures Capital not only fosters innovation but also contributes to veteran economic empowerment and broader job creation.
Evaluating Founders: Military Discipline Meets Venture Acumen
Burrell’s military leadership experience profoundly influences his approach to evaluating founders. He articulates a philosophy that mirrors battlefield decision-making: “You make decisions with incomplete information, but not casually. You gather the available facts, understand the risk, and move forward with discipline.” This principle is acutely relevant in venture capital, where investors rarely possess perfect information, especially during the nascent stages of a startup. They must meticulously assess the founder’s vision, the team’s capabilities, market dynamics, technological innovation, timing, and the risk-adjusted opportunity, all while acknowledging the inherent certainty that the initial plan will evolve.
While Veteran Ventures Capital mandates meaningful veteran representation in a company’s leadership and ownership—ensuring that invaluable experience is integrated into the strategic core, not merely an advisory credential—military service alone is not the sole determinant of investment. Burrell seeks specific, critical qualities in founders: candor, coachability, crystal-clear communication, and a demonstrable ability to prioritize. He values founders who possess a realistic understanding of their strengths, openly acknowledge their limitations, and are transparent about the most challenging aspects of their business. This level of honesty is paramount, as it enables investors to proactively identify potential gaps and provide targeted support before minor issues escalate into significant problems. As Burrell emphasizes, “Trust and coachability are really important. Trust should compound over time and become a real operating advantage.” This foundational trust fosters a collaborative environment, crucial for navigating the volatile landscape of startup development.
The Execution Imperative: Translating Capital into Outcomes
A central lesson derived from Burrell’s extensive experience, both in military command and in building Veteran Ventures Capital, is the paramount importance of execution over mere presentation. A pitch deck, while essential, captures a business plan at a static moment in time. The reality of building a successful company, particularly in rapidly evolving sectors, demands an agile ability to continuously adjust that plan as customer needs, market conditions, technological landscapes, and broader operational circumstances change. This adaptive capability, often referred to as "adapting and overcoming" in military parlance, is known as "pivoting" in the venture world.
Burrell underscores this distinction: “You are going to engage with a plan that will change. Capital is important, but capital alone does not solve hard problems. Leadership, discipline, resilience, and customer focus are what turn capital into outcomes.” This insight is especially critical in the national security technology domain, where a promising innovation must navigate an arduous path from initial research and development to prototype production, and ultimately, full-scale manufacturing and deployment.
Founders, particularly those with deep technical expertise, can sometimes become overly focused on the technology itself, inadvertently losing sight of the comprehensive company infrastructure required to successfully deliver it. A technically impressive product, no matter how groundbreaking, must still address a validated customer need, successfully navigate complex government acquisition pathways, establish robust production capacity, and underpin a sustainable business model. Venture capital, beyond providing the initial financial injection, offers the crucial time, specialized expertise, strategic relationships, and follow-on financing necessary to bridge these critical gaps. Its impact extends far beyond the initial check; it encompasses the sustained, long-term effort of helping a company evolve into a fundable, scalable, and market-relevant enterprise.
A Holistic Support System: Bridging Mission and Market
Veteran Ventures Capital is renowned for its highly active engagement with its portfolio companies, a commitment Burrell humorously describes as providing founders “as much help as they can stand.” This support is characterized by its directness and practical utility. The firm actively assists founders in navigating the intricacies of government customers, identifying the appropriate acquisition officials, discerning which proposals offer the highest strategic value, securing crucial non-dilutive funding, forging strategic partnerships, recruiting key talent, strengthening operational efficiencies, and meticulously preparing for subsequent rounds of capital.
The firm’s objective is not to passively observe from the sidelines but to offer candid, proactive guidance—ideally before a founder learns the same lesson through costly experience. As Burrell states, “We try to be useful across both sides of the business: the mission side and the market side.” This dual focus ensures that companies are not only developing cutting-edge technologies but also building viable, sustainable businesses capable of meeting both government mission requirements and commercial market demands.
This intense engagement also serves to strengthen the firm’s relationship with its limited partners (LPs). Veteran Ventures Capital maintains close, transparent contact with its portfolio companies and employs disciplined reporting processes to communicate their progress, emerging risks, and the firm’s responsive strategies. Burrell emphasizes, “When you support founders, you are also supporting your investors.” This active portfolio management provides LPs with a clearer, more nuanced understanding of how companies are progressing, where challenges may arise, and how the firm is actively mitigating those risks. It embodies a fiduciary discipline that Burrell carried from his public service into private capital, recognizing that investors, founders, and customers are interconnected components of a cohesive ecosystem.
Service Beyond the Uniform: A Triple-Bottom-Line Opportunity
Derren Burrell steadfastly rejects the simplistic notion that veterans should primarily be viewed through a lens of need. While acknowledging that some veterans require significant support post-service, he stresses that the overwhelming majority transition from military life ready to lead, innovate, and continue contributing meaningfully to society. “When veterans take off the uniform, the desire to serve, to be part of something bigger, and to make a difference does not go away,” he asserts.
Veteran founders embody this mission-oriented ethos in their entrepreneurial endeavors. They often possess an intrinsic understanding of the government customer because they have lived and experienced those customers’ problems firsthand. This operational experience allows them to translate real-world needs into innovative technologies that address critical gaps, while simultaneously identifying and pursuing viable commercial applications. Veteran Ventures Capital strategically positions itself at this crucial intersection of veteran entrepreneurship, national security imperatives, private capital, and technological innovation. Its fundamental role is to facilitate the transition of groundbreaking ideas from the boardroom to the field, thereby building enduring companies in the process.
Burrell views organizations like the NVCA as vital connective tissue supporting this critical work. Veteran Ventures Capital joined NVCA early in its journey, during the establishment of its first fund, and has since actively participated in various programs, including VC University, mentorship initiatives, and the Strategic Operations and Policy Summit. These resources have been instrumental in the firm’s team development, deepening its industry relationships, and engaging with the evolving policy environment that directly impacts its portfolio companies.
Burrell eloquently frames Veteran Ventures Capital’s work through a "triple bottom line": supporting veterans, strengthening national security, and generating robust financial returns that its investors can take pride in. His optimism is rooted in the burgeoning demand for serious innovation across the nation. The country urgently requires founders capable of constructing durable companies that can tackle consequential challenges in defense, autonomy, space, cybersecurity, and advanced manufacturing. Simultaneously, new synergistic bridges are forming among government agencies, agile startups, discerning venture investors, established defense companies, and regional innovation hubs. This heightened connectivity is crucial for accelerating the delivery of promising technologies to customers and bolstering America’s capacity to compete on a global stage.
Burrell does not perceive the escalating focus on national security technology as a fleeting investment trend. Instead, he identifies it as a fundamental, structural shift in how innovation is developed, financed, and strategically deployed. “Our weapon now is venture capital,” Burrell declares. “When that capital is applied thoughtfully, it can help strengthen the country’s security and innovation ecosystem while scaling companies that matter.” For Derren Burrell, venture capital represents another profound form of service—a powerful mechanism to back visionary leaders, build impactful companies, and propel critical technologies from mere possibility into practical application. With a clear vision and unwavering commitment, he concludes, “The best is yet to come, both for us as a firm and for the country.” This sentiment encapsulates the transformative potential of Veteran Ventures Capital’s mission in shaping the future of national security and economic prosperity.
