Less than 5% of post-9/11 veterans have started their own businesses, compared with nearly half of World War II veterans.
Limited access to capital is the major deterrent, write Jules Miller of LunaCap, a New York-based firm that invests in small businesses run by veteran, women, and minority entrepreneurs.
LunaCap, started in 2014 by Paul Capon, himself a U.S. Air Force veteran, is looking to raise $30 million second fund. The portfolio from its first fund includes Down the Road Beer Company in Everett, Mass. and Paul Evans shoe company, which are both veteran-run.
LunaCap provides three-to-five-year debt funding of between $500,000 and $3 million to early-stage companies. While it focuses on underserved entrepreneur demographics, LunaCap does not otherwise screen for high-impact startups.