During a 2017 report titled "Bridging the Gap: Motivations, Challenges, and Successes of Veteran Entrepreneurs," it was concluded that veterans require more support around financial literacy and capital access is a major challenge for veteran entrepreneurs.

When a veteran entrepreneur has grown their startup successfully and wants to scale their business, their next step is going to be a beeline for Sand Hill Road venture capital investors. This is a myth. 

At the beginning, funding sources should be based on the stage of the business. Venture capital funding usually comes later in the startup process for early-stage companies. 

The mission of VetsinTech is to educate the entrepreneur community of veterans and military spouses about the various funding sources available to them. 

Based on their own research, 92% of veteran entrepreneurs and military spouses are interested in learning about capital funding in order to understand the funding process completely.  

This list of Vet Cap funding sources includes:

Starting from scratch - This extends beyond the resources the founders have already invested in their business (personal savings, credit cards, etc.). Friends and family are frequently the first private investors who help startups bootstrap their small businesses.
A grant is a financial gift - Business and government grants are available. Small Business Innovation Research (SBIR) is a U.S. government program coordinated by the Small Business Administration that helps certain small businesses conduct research and development. Grants or contracts are used to fund the program.
Development of the corporation - A wide variety of companies, often across industry sectors, provide funding to veterans. The tech sector in particular has a long list of companies that have dedicated resources to funding veterans.
Loans are available - Most traditional loans, such as those from the Small Business Administration or local and community banks, have dedicated funds earmarked for veterans.
Crowdfunding - Another key way through which funds are raised. Several crowdfunding platforms have emerged beyond Kickstarter and Indiegogo. Several of these are ideal for fast-growing, tech-based startups.

They encourage venture capital, but only when the startup has reached the right stage. Depending on the startup's age and stage, there is a range of venture capital financing options available. VC firms range from angel investors to pre-seed and seed-stage VC firms, and then to firms focused on Series A, B, C, and late-stage investments.