Today's episode explores three ideas that caught my attention:
"If these companies roll to zero, it's a big problem" – Understanding this fundamental difference between ETA and venture startup investing is critical for angel investor portfolio construction and risk management.
The "peace dividend" creating veteran entrepreneurs - Patrick's observation about post-combat veterans seeking meaningful civilian engagement revealed how macro geopolitical shifts can create unexpected entrepreneurial waves.
Military handoffs - Patrick's description of asking previous commanders about unfulfilled goals mirrors exactly what successful business buyers should ask sellers, which is one of the things that make veterans so successful in the ETA world.
I explore these ideas and more with Patrick Flood, Founder at Owners in Honor.
Patrick Flood is the Founder and CEO of Owners in Honor, a nonprofit organization that has guided over 190 veterans toward business ownership through acquisition. A decorated Special Forces veteran who served for 26 years, Patrick brings a unique perspective on how military leadership skills translate to business operations. After earning his MBA from Duke's Fuqua School of Business, he identified the gap between veteran capabilities and traditional entrepreneurship paths, leading him to create a structured approach to business acquisition that leverages the collaborative, mission-driven mindset inherent in military culture.
During our conversation, Patrick shares:
The historical context of veteran entrepreneurship from WWII to today - explaining why current geopolitical conditions are creating a new wave of military-to-business transitions with unprecedented opportunity.
Why the "smallest unit is two" principle creates natural advantages for veterans in business acquisition scenarios - contrasting this with the isolation challenges that traditional startup entrepreneurs face.
A framework for understanding why ETA investments require different risk profiles than traditional startup investing - and how family offices and angel investors can benefit from this emerging asset class.
What We Cover:
00:00 Introduction
03:03 Challenges and Rewards of Veteran Entrepreneurship
04:26 The Unique Value of Veteran Entrepreneurs
27:03 Financing ETA for Veterans
29:48 Capital Reserve and Outside Capital
31:26 Key Questions for Potential Investors
35:30 Investment Strategies and Returns
37:03 Family Offices and Veteran Investments
40:26 Patrick's Journey and Military Service
44:07 Building a Self-Sustaining Nonprofit
49:33 Engaging with Owners and Honor
Listen now on Spotify, Apple Podcasts, and YouTube.
Connect with Patrick
Website: https://www.ownersinhonor.org/
Connect with Andrew
Newsletter: https://thediligentobserver.substack.com
Website: https://pitchfact.com/
Stuff We Reference
Owners in Honor: https://www.ownersinhonor.org/
Texas A&M: https://www.tamu.edu/index.html
Duke University: https://duke.edu/
Post-9/11 GI Bill: https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Post-9/11-GI-Bill?serv=128
Veteran Business Battle at Rice University: https://business.rice.edu/veterans-business-battle
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All opinions expressed are personal and may not reflect the views of the individual’s organization or of The Diligent Observer. Not investment advice.
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