“Investing in Military Owned Companies with Air Force Veteran Paul Capon” Ep. 238
Paul Capon has over a decade of experience in managing teams, investing in and running companies, in both start- up and distressed situations. After serving as a U.S. Air Force Captain responsible for 150+ personnel and convoy commander for over 100+ missions in Kabul and Logistics lead in Kandahar, he joined Capstone in early 2013 and worked in the restructuring industry. He worked on multiple cases representing both company and lender side helping recoup lent capital or helping companies secure DIP financing.
In early 2015, Paul founded LunaCap Ventures, a Venture Debt firm focused on hybrid growth capital investing. As Managing Partner of LunaCap, he has led and executed a number of investments and distributed capital to LP’s within the first year.
Paul Capon – Leveraging Your Network
Paul sits on the board of one portfolio company as vice chairman and helped guide it out of distress to its first profitable year and subsequent sale. He is also the CEO of Wessex Press, a LunaCap Ventures portfolio company. Most importantly, Paul increased LunaCap Venture’s revenue four times and turned the company to its first profitable year since inception within in his first three years.
Paul holds a B.S from the United States Air Force Academy, and MBAs from Columbia Business School and London Business School.
He is a founding member of the New York City Military Officers Club, and also sits on the advisory boards of Comply First and the Joint Service Academy Network.
“We invest in US based Military, Women, and Minority (MWM) owned companies through venture debt and warrants. As investors, we facilitate and help our companies by leveraging our network and expertise as entrepreneurs ourselves.”– Paul Capon
Transitioning to Civilian Sector
The transition from the Air Force to business school was relatively easy for Paul. He always knew that he would go into the civilian sector and finally go to business school. Business school gave Paul the foundation that he didn’t get in the military. As a result, quickly learned that there was an established pipeline and most hire from the pool of business school graduates. Paul knew leadership, team building and soft skills from the military. Hence, Paul wanted to learn the numbers.
“We want to serve, we love leadership, we love camaraderie, we love building things and I think it lends itself very much and translates into the civilian world.” – Paul Capon
NOVEMBER 10, 2017
LUNACAP VENTURES ANNOUNCES DOWN THE ROAD BREWERY’S EXIT FROM FUND
Beer Start-Up Becomes First Veteran-Led Company to Realize Return on Investment
NEW YORK, NY (November 10, 2017) - LunaCap Ventures, an early stage venture debt fund investing in military veteran, women and minority founders, announced today the fund exit of its portfolio company, Down The Road Brew Co. (DTR). Headquartered in Everett, Massachusetts, DTR’s founder and CEO Donovan Bailey started the company after serving in the US Army for eight years. DTR now produces a full line of core and seasonal craft beers and recently opened a highly-anticipated state-of-the-art brewhouse and 300-person taproom in Everett. The company has experienced accelerated growth over the last couple of years, which has allowed them to refinance the debt funding they received from LunaCap in 2015.
“We are excited and extremely proud of Donovan and the Down The Road team. As one of the Boston-area’s fast-growing businesses, we have watched them grow their company into a national brand loved by beer drinkers everywhere,” said Paul Capon, LunaCap Ventures Managing Partner. “DTR is a prime example of why we seek out and fund veteran-founded start-ups: their singular focus and self-motivation to succeed.”
“Without the support of LunaCap Ventures, DTR wouldn’t have achieved the growth and expansion that we experienced,” said Bailey. “By injecting capital into a company that’s proven product-market fit and is generating significant revenue, LunaCap’s investment helped us expand our product line, grow the team, and build our brewhouse all at the right time.”
With an average expected internal rate of return (IRR) between 30%-40%, LunaCap has carved out a niche investment strategy by focusing on communities that are underserved by traditional venture funds. To be considered for investment, companies must be generating a minimum of $1 million. Additionally, LunaCap Ventures focuses on military, woman, or minority (MWM) owned or run companies. Along with Capon, who is a US Air Force veteran and two-time Afghanistan tour veteran, the leadership team includes Partner and serial-entrepreneur Jules Miller; Partner and investment banking veteran Jonathan Fung; and Principal and former Goldman Sachs trader Ricardo Anzaldua, who is a US Marine Corps and two-time Afghanistan tour veteran.
ABOUT LUNACAP VENTURES
LunaCap Ventures is New York’s leading early stage venture debt fund that invests in military veteran, women and minority founders. Built on the principle that providing opportunities to those with minimal or limited access to funding can change the world, LunaCap invests in diverse founders who are building the world’s future companies. To learn more about LunaCap Ventures visit www.lunacapventures.com.
Type A PR
The low-interest rates over the last 6 years created an unbalanced risk-to-reward ratio which ballooned already over-capitalized private equity and venture capital markets; inflating valuations and producing a bubble. Hybrid investment in the form of debt plus equity allows investors a better compromise of risk to reward in today’s startup market situation.