🇺🇸 The Veteran Fund Update: Q2 2025
Q2 2025 was a breakout quarter for The Veteran Fund, marked by strong momentum across our portfolio, as critical technologies continue to capture global attention.
On Independence Day, we made a bold declaration, one rooted in conviction, character, and the belief that liberty must be earned by each generation, not simply inherited.
Pitchbook featured The Veteran Fund’s upcoming $50M Fund II, reinforcing our mission to back veteran-led, seed-stage companies driving U.S. leadership in national security, AI, robotics, energy, aerospace, cybersecurity, and defense.
In a world increasingly shaped by geopolitical volatility, we believe leadership matters more than ever. From Ukraine’s Operation Spiderweb campaign inside Russia to escalating strikes between Israel and Iran, and the U.S. Operation Midnight Hammer targeting Iranian nuclear infrastructure, the global spotlight is on critical technologies.
That spotlight is intensifying with new Executive Orders from the Administration aimed at accelerating American innovation, including a sweeping directive to fast-track drone production and deployment. This order gives military commanders the authority to independently test and procure uncrewed systems, a shift that will directly benefit several of our portfolio companies.
With rising Department of Defense budgets and favorable macroeconomic conditions, including expanded QSBS tax-free capital gains for venture investors, the moment to double down on America’s technological and economic edge is now.
In this quarterly update, we are proud to announce several new investments aligned with the executive order to “Unleash American Drone Domination”, share exciting portfolio company updates, and invite you to join upcoming events.
🚀 New Investments
Natilus is reshaping the future of flight by building the most efficient aircraft ever developed. With over $23.7 billion in reservations of its aircraft from Tier 1 customers, including major U.S. airlines, Japan Airlines, and Ameriflight, the company is positioned to lead the next generation of aerospace innovation. Natilus’ proprietary blended-wing-body design dramatically cuts emissions, reduces operating costs, and increases both cargo volume and passenger capacity. The Natilus team consists of industry leaders and has secured key launch partners to raise its Series A and support the first full-scale prototype flight of its Kona aircraft.
Alongside our fund investment, The Veteran Fund successfully oversubscribed an SPV for Natilus, providing an additional direct investment opportunity for our LPs.
Based on the success of our previous SPVs, The Veteran Fund will occasionally open up investment opportunities to accredited investors beyond our LP base. If you’re interested in staying informed, you can request more information here. Please note: This is not an offer to invest or a solicitation of securities.
The Veteran Fund participated in Bravo Ordnance’s $3M pre-seed round to accelerate the future of energetics manufacturing at the edge. By pairing advanced manufacturing techniques with years of internal R&D, Bravo reduces munition production timelines by up to 90%, delivering warheads and fusing at a fraction of traditional costs.
In an era where warfighters and defense suppliers require adaptable, on-demand solutions, Bravo is pioneering battlefield-ready manufacturing that delivers in days, not months. Their platform directly addresses contested logistics and enables rapid, precision production for warfighters operating at the tactical edge.
SplashOne is pioneering the next generation of counter-UAS technology with fully autonomous, low-altitude fighter drones engineered to intercept and defeat small unmanned aerial systems (sUAS) at scale. Their solution directly addresses the urgent and rapidly growing threat posed by sUAS across both military and civilian domains.
The SplashOne team includes nationally recognized leaders from the DoD’s Replicator program, U.S. Special Operations, Harvard, MIT, Boeing, and Apple, bringing unmatched expertise in autonomy, engineering, and defense. With a focus on scalable, low-cost counter-drone systems, SplashOne is positioned to lead a market projected to exceed $26 billion by 2034, bolstered by recent congressional funding that underscores the strategic importance of their mission.
📈 Portfolio Highlights
We’re excited to share that portfolio company Glīd has closed an oversubscribed $3.1M pre-seed round, with our friends at Outlander VC leading the round. They were also just named one of the top deep-tech companies by Deep Checks. Glīd is developing an AI-powered Mobility-as-a-Service platform with autonomous road-to-rail vehicles and smart infrastructure to streamline freight across ports, rail, and industrial corridors. Led by veterans from SpaceX, Google, Matbock, and the U.S. military, the team is deploying vehicles under signed contracts and gearing up for a $10M Seed round later this year.
Vatn Systems opened a state-of-the-art manufacturing facility in Rhode Island capable of producing up to 2,000 units annually, and unveiled its new Skelmir S12 AUV‑Torpedo, an autonomous underwater vehicle with a range of over 200 nautical miles and payload of 250 pounds. We’re proud to celebrate this major milestone and the team’s continued leadership in dual-use maritime innovation. Press release.
On the heels of Cyber Command requesting a 6x budget increase, Cyberspatial has opened a second headquarters in Colorado Springs, signaling rapid growth and deepening its commitment to defense and cybersecurity innovation. With several multi-million dollar contracts, this expansion adds local engineering, operations, and sales capacity, positioning Cyberspatial to better serve military and government clients. It’s a strategic move that underscores the strength of their dual-use business model and accelerates national security reach from coast to coast. Press release.
Stitch3D has closed a $1.92M seed round to accelerate its cloud-native platform for managing LiDAR and 3D point cloud data. Their technology enables enterprises to adopt the use of 3D data, which drastically improves analysis and collaboration of large-scale projects in construction, defense, and oil and gas by allowing teams to interact with complex 3D spatial data, LIDAR, and photogrammetry point clouds that drive actionable insights in ways never before possible. Stitch3D is seeking customers in Oil and Gas, where enterprises can leverage 3D laser scanning to document real assets such as offshore rigs, facilities, pipelines, and oil wells. Specifically, they are looking to speak with civil engineers, surveyors, and cartographers.
🇺🇸 Featured Limited Partner: Lieutenant General Scott Kindsvater, U.S. Air Force (Retired)
Our featured LP this quarter is General Scott D. Kindsvater, a retired U.S. Air Force Three Star General and former Deputy Chairman of the NATO Military Committee. With a distinguished career spanning nearly four decades in intelligence, operations, and multinational defense strategy, General Kindsvater brings unmatched insight to The Veteran Fund. His leadership at the highest levels of global security makes him a valued advisor and strategic thought partner to our portfolio. His commitment to service, innovation, and mission alignment exemplifies the values we champion. We are honored to have General Kindsvater in The Veteran Fund LP network.
📣 Announcements and Events
Limited Partner General Stan McChrystal Featured on The Daily Show: Congratulations to LP General Stanley McChrystal on his powerful discussion with The Daily Show, discussing how character and decisive leadership shape both individual lives and national outcomes. His insights on integrity, accountability, and shared purpose resonate deeply with our mission and inspire the next generation of veteran entrepreneurs.
Photo credit: Tectonic Defense
Secretary of Defense Orders Military to “Unleash” Use of Small Drones: In a bold new directive titled “Unleashing US Military Drone Dominance,” Secretary of Defense Pete Hegseth called small drones “the biggest battlefield innovation in a generation” and announced sweeping reforms to accelerate their deployment. Group 1 and 2 drones will now be treated as consumables, like ammo, making it easier to use, replace, and scale them in combat. Lower level commanders are empowered to procure, modify, and field drones rapidly, including through 3D printing. By the end of FY2026, every Army squad must be equipped with low cost, expendable drones, with training ranges and major exercises focused on drone warfare. The Pentagon will also streamline procurement and launch a certified “Blue List” of US made drones by early 2026.
Photo credit: The Wall Street Journal
Big Win for Venture: Tax Free Gains Expanded for Early Stage Investors: The proposed QSBS expansion in the Big Beautiful Bill is a major win for venture investors, offering up to 100% capital gains exclusion on qualified stock held for five years, with lower thresholds at three and four years. It raises the per issuer gain cap to 15 million dollars and the asset eligibility limit to 75 million dollars broadening access and increasing potential tax free returns for venture investors. This update strengthens the long term incentives for investing in early stage, high growth companies.
On July 31st, The Veteran Fund is hosting an LP call to discuss the implications of the Big Beautiful Bill’s expanded QSBS exemptions and inviting accredited investors beyond our LP base to join. If you are interested in learning more, please register here: veteran.fund/qsbs
Limited Partner Deepak Chopra is partnering with Insider Expeditions to lead an extraordinary 10‑day “Conscious Mindfulness Expedition” to Antarctica this November.
This voyage, aboard the luxury Ocean Victory, offers a powerful opportunity for deep reflection and connection with nature, science, and one’s inner self. We’re excited to highlight this unique LP-led journey, which aligns with our mission to foster transformative experiences for leaders and creators. Use code “TVF2025” for $1000 off.
We couldn’t be more excited about what lies ahead: a soon to be launched Fund II, a rapidly advancing portfolio, and a global landscape demanding resilient, dual-use innovation.
From autonomous vehicles and UAVs to AI-powered logistics and maritime defense, The Veteran Fund is backing the builders who are strengthening America’s future.
Thank you for your continued partnership, belief, and conviction. Together, we’re not just funding companies, we’re building a better future rooted in liberty and prosperity.
-Ryan, Lisa, Justin, and Mike
