Hivers & Strivers is the most impressive Venture Capital group you’ve never heard of. Since 2010, they’ve quietly invested in over 20 companies, pouring $80 million (yes, million) into start-ups with one crucial caveat: The companies they invest in have to be founded by a U.S. veteran. With six exits, H&S is outperforming other VCs with impressive returns and big numbers. When asked how and why they’re so successful, founder Doug Doan (1979 graduate of West Point and former Army intel officer) says it’s easy: “We don’t invest in companies. We invest in people. Our veteran entrepreneurs are grittier. They’re more focused. They know how to lead a team. Through their military service, they’ve demonstrated they are committed to fulfilling the mission above all else. They don’t quit.”
So, how did this all begin? With a laugh, Doan says: “One word: ‘Depression.'”
Doan and his West Point roommate, Rick Dalzell, attended the 2011 Army/Navy game together. Navy had won nine years in a row and Army was finally tracking to break the streak. You can almost hear the high-pressure stakes: “4th and 7. Army has the ball on Navy’s 25-yard line. Time is ticking. This is the chance of a lifetime for this Army team to finally break a nine-year losing streak. For these seniors, it means everything. In their tenure at West Point, they’ve never won an Army/Navy game.”
And just like that, Army hikes the ball and Navy linebreaker Matt Warrick breaks through the line, tackling the quarterback for a loss of yards, effectively ending Army’s drive and Doan’s hopes and dreams of taking back the coveted Army/Navy bragging rights.
Doan and Dalzell left the game depressed and stopped at a Waffle House to ease the pain. They started talking about the impressive men and women who come out of the service academies and how they wanted to pour more into them. Doan, who had been a successful angel investor, decided his new mission was to invest only in veteran-founded companies. “‘Hive’ is a term used throughout history at West Point to describe an individual who consistently overachieves, is at the top of their class academically, and puts forth their absolute best effort to accomplish their goals,” Doan explained. “This term represents the genesis of the name Hivers & Strivers. Hivers & Strivers does not simply seek out great ideas for investment opportunities, but rather searches for a military veteran founder who exhibits the qualities of a ‘hive’ and will do everything they can to push their team over the finish line.” Ten years and two funds later, this founding principle of investing in only high-caliber military veterans has proved itself over and over.
“We’re not a philanthropy,” Doan explained. “We aren’t investing in veterans because we feel sorry for them. We’re investing in them because we expect them to do exceptional things and make big returns. Vets are often portrayed as victims in the media. It’s completely distorted. Most military veterans who serve come out of the military stronger than when they went in.”
In 2017, H&S brought on an intern to learn the business, who quickly became the heart and soul of the company and rose to Partner. That intern? Matt Warrick, the Navy linebacker. Warrick screens applicants and looks for the next investment for H&S. What type of company does H&S typically invest in? “We want to be the first ones in,” Warrick explained. “We’re really proud of that. We believe in a veteran before anyone else does and other VCs follow our lead.” They’re looking for companies that can scale on a national and global level. “We don’t do grants or a one-time investment in, say, a restaurant in Norfolk. We’re looking for large returns and potential.” A perfect example? Black Rifle Coffee Company. H&S made one of the first investments in the company because they believed in the vision their founders had. Beyond investment, H&S offers companies development, introductions to their extensive network, operations support and staffing recommendations. “The ongoing support differentiates H&S from every other VC. It’s why they outperform,” Rick Webb, former Senior Vice President of WalMart and H&S advisor, shared with We Are The Mighty.
While veterans represent only about 5% of the country’s working population, they make up 9% of all business owners, contribute $1.4 trillion to the U.S. economy, and veteran-owned companies employ more than 5.8 million people.
“Vets are worth backing,” Warrick said. “I would rather see veterans succeed than anyone else.”
Learn more about Hivers & Strivers here.