e PenFed Foundation

Deploying Resources for Military Veteran Entrepreneurs

Imagine for a moment that the delicious sugar-free ketchup and BBQ sauce you picked up at the store were created by a Navy helicopter pilot. Imagine that the AI platform insuring your rental lease was conceived by a Captain in the Air Force. Imagine that the yoga studio down the street was founded by an Air Force veteran as a way to make a positive impact after returning from deployment in Afghanistan.

Now imagine that these scenarios are not imaginary at all, but three real businesses—True Made Foods, LeaseLock, and Honest Soul Yoga. They are just a few of the veteran-owned companies that the PenFed Foundation has accelerated through its Veteran Entrepreneur Investment Program (VEIP).

PenFed Credit Union, the second largest federal credit union, has been serving U.S. military members since 1935 and currently offers financial services to 2.7 million members worldwide. In 2001, the PenFed Foundation, a national nonprofit, was created by the credit union to “empower military service members, veterans, and their communities with the skills and resources to realize financial stability and opportunity.”

Originally, the PenFed Foundation primarily focused on assisting returning service members who had been injured in combat. This initiative eventually developed into multiple projects across the country meeting unmet needs in the areas of caregiving, education, housing, and financial assistance for all veterans, not just those who were injured.

As the PenFed Foundation grew, so did the scope of the opportunities it was able to offer. In 2018, VEIP was launched to support veteran-owned startups and businesses through access to networks and capital.

“About 200,000-250,000 people a year transition from the military service into the civilian community,” says James Schenck, President and CEO of the PenFed Credit Union and

CEO of the PenFed Foundation. “There’s a constant flow. And we found that not everybody wanted to go into corporate America. We had a lot of military-transitioning individuals who wanted to launch their own businesses. And that was really the impetus for VEIP.”

VEIP is a multi-faceted entrepreneurship program that provides an array of resources to veteran entrepreneurs under the umbrellas of education, preparation, and investment. The program provides entrepreneurship training through workshops, webinars, and “bootcamps.” But instead of mudcrawling under barbed wire or vaulting over an obstacle course wall, members are trained in skills such as financial planning, pitching, networking, and fundraising. For veteran-owned companies at the growth stage, VEIP also offers an intensive one-year master’s program that acts as a fundraising accelerator.

Additionally, the PenFed Foundation leverages its network of over 1,700 business partners from different industries to provide veterans with mentorship regarding business considerations such as finance, marketing, intellectual property, leasing, and employee management. VEIP also serves as a conduit to a larger business ecosystem where veteran entrepreneurs can connect with potential distributors, venues, and other business partners.

Along with mentorship and a business network, veteran entrepreneurs also need access to capital. Because veterans have traditionally been underrepresented in receiving venture capital, VEIP holds two funds dedicated solely to the investment in veteran-owned ventures.

The PenFed Foundation has recognized that many of the soft skills that military members develop during service—things like mental fortitude, teamwork, adaptability, leadership, and resourcefulness—translate well to the building of a successful business.

“We have found that these individuals bring unique professional skills and a sense of grit, determination, and resilience,” says Schenck. “They’re used to being agile and are very focused and mission-oriented. When they have a goal, it’s not an option—they’re going to accomplish that goal. We love to invest in entrepreneurs that bring that mindset to the table.”

The proverbial table in this instance is a set of “ignition challenges” and open calls for applications that the PenFed Foundation issues throughout the year in order to source hundreds of business plans that compete for seed money. Applicants go through workshops and participate in Shark Tank-style pitch competitions where their business plans are rigorously vetted by a panel of entrepreneurs and experts. This executive panel looks for quality businesses into which the VEIP fund will invest capital. The PenFed Foundation looks to invest in the very best.

“At entry level investing, you’re really looking at the person: their character, their passion, and their knowledge of the market gap they’re trying to fill,” explains Schenck. “We want those who really understand the need for a product or service and are laser-focused on meeting that need. They need to do one thing really well and then scale that thing.”

In the years since its inception, VEIP has seen immense success already, having accelerated more than 350 veteran-owned startups and helping to educate over 4,700 veteran and military spouse entrepreneurs. The VEIP’s second investment fund of $10 million is currently being put to work funding veteran-owned start-ups in a variety of industries, and the Foundation’s goal is to raise $25 million and $100 million for the program’s subsequent third and fourth funds.

For those looking to help VEIP continue its mission, there are a variety of ways to do so. The (tax-deductible) donations made to VEIP help fund the educational seminars, bootcamps, and pitching competitions that the program hosts several times a year. Additionally, donors have the alternate option of joining the VEIP fund as a limited partner, where they will participate in the selection and financing of these growing businesses. The PenFed Foundation is also continually seeking volunteer mentors in a variety of areas, such as human relations, finance, marketing, and pro bono legal advice.

VEIP is a cause that Schenck calls “a gift that gives both ways.” As he sums up quite nicely, “These are men and women who went into harm’s way to provide the way of life and the freedoms we enjoy. The real success story is giving these entrepreneurs the ability to pursue their dreams and seeing them when they get their first contract signed or hire their first employees or get their first funding check. Working with entrepreneurs is inspiring—the energy is absolutely contagious when you surround yourself with smart, driven, passionate young men and women. It’s an energy that’s hard to replicate.” ♦

If you’d like to learn more about the PenFed Foundation and the Veteran Entrepreneur Investment Program, please visit penfedfoundation.org and veip.penfedfoundation.org

Photos courtesy of the PenFed Foundation