Learn Real-World Venture Capital Skills at University: Student Success Stories

Summary

Schools Offer Real Venture Capital Lessons
Venture capital (VC) is a form of funding that startups and small businesses obtain to finance their operations and expansion. VC is often provided by groups of investors, known as venture capital firms, and involves taking a stake in the business in exchange for the money provided. In recent years, many universities have begun to offer students the opportunity to gain real-world experience in venture capital through courses, internships, and other programs.


In the past, most courses related to venture capital were theoretical and did not give students a hands-on experience. This has changed with the introduction of courses and programs that involve working with real venture capital firms. The goal of these programs is to provide an insight into the practical aspects of the venture capital industry, such as networking, due diligence, negotiations, and legal issues.

For example, the Association for Corporate Growth (ACG) Student Chapter at Stanford University offers students the opportunity to learn from and network with venture capitalists from top firms. The program includes workshops, mentoring, and field trips to venture capital firms, as well as internship opportunities. Additionally, a number of universities offer courses in venture capital and private equity, giving students a more in-depth understanding of the industry.

The benefits of these courses and programs extend beyond providing students with a basic understanding of venture capital. For example, students are able to gain insight into the culture of venture capital firms, as well as the key strategies and tactics used in the industry. Additionally, students are able to develop their skills in negotiation, presentation, and communication, which are essential for success in venture capital.

Overall, universities offering courses and programs related to venture capital provide students with a real-world experience that is invaluable for their future careers. Through these types of courses, students are able to gain an understanding of the industry and develop the skills necessary to be successful venture capitalists. The ability to network with venture capitalists and gain access to internship opportunities also provide students with a competitive edge in the job market. Therefore, universities offering courses in venture capital are providing students with invaluable opportunities that will help them capitalize on the world of venture capital.
 

Schools Offering Real Venture Capital Education

Advancing education to the next level, universities and colleges continue to offer more specialized courses for students to get a better understanding of relevant business practices and trends. One of the newest program introductions is venture capital courses, which are specifically designed for students wanting to learn more about venture capital and investments. Real venture capital lessons are now being taught at an increasing number of universities, providing students with a unique opportunity to take their business education to the next level.
 

Real Opportunities Abound for Aspiring Entrepreneurs

Real opportunities exist for aspiring entrepreneurs to learn more about venture capital and make calculated decisions when investing in firms and startups. Through taking courses as part of a Business or Accounting program, students can now develop a greater understanding of venture capital and the different aspects that come along with venture capital investments. Furthermore, by participating in courses such as these, students can develop a better understanding of the factors that make the venture capital industry successful.
 

Gaining Valuable Insights into the Venture Capital World

Gaining valuable insights into the venture capital world is crucial for any aspiring businessperson, particularly if they plan to make wise investments in startups and other businesses. With the help of these courses, students can learn about the different types of venture capital available, the process of raising venture capital, the importance of due diligence, and the strategies for making successful investments. All of this provides students with the resources they need to gain a well-rounded understanding of venture capital and its importance in the business world.
 

Developing Expertise in Valuation and Due Diligence

By taking courses focusing on venture capital, students can gain a better understanding of the valuation process and due diligence that is required when making investments. Other lessons taught in these courses include valuing a business for the purpose of venture capital investment, preparing a pitch for potential investors, and understanding the intricacies of venture capital networks. All of this enables students to develop the necessary expertise to confidently make investments in startups and other businesses.
 

Learning Essential Skills for Investment Decisions

Moreover, students who take courses in venture capital have the opportunity to hone their skills in market analysis and acquire the essential skills needed for sound investment decisions. From financial modeling and analyzing portfolio performance to creating venture capital exit strategies and understanding the different tax implications of venture capital investments, students can gain a comprehensive understanding of the venture capital industry. As a result, they become more well-prepared to pursue a successful career in venture capital.

In an effort to elevate their teaching beyond the usual case studies and guest speakers, a handful of schools are raising significant amounts of money to turn over with a few strings to students who invest in real startups. The hope is to better train both aspiring venture capitalists and aspiring entrepreneurs, who will need to know what it takes to catch an investor's eye.

And while it hasn't happened yet, if a student venture fund happens to back the next Google and fills its university's coffers, so much the better.

"I went around to different VC firms in the (Salt Lake) valley and said I'd sweep their floors for them if they wanted. Then I saw this opportunity," said Mark Campbell, a University of Utah student involved with the University Venture Fund there. "It just kills, what the classroom has to offer."

Utah is one of at least three business schools where students essentially run venture capital funds, along with the University of Michigan and Cornell University. Others, including the University of Maryland, sponsor venture funds that involve students to varying degrees in evaluating investment prospects. Several considering starting student-run funds plan to attend a conference in Utah next month.

It's nothing new for students to play with real money. Dozens of schools let students advise and manage equity funds to learn about stock picking, and many run business plan competitions or "incubators" that fund student start-ups.

But the schools say having students really get their hands dirty in the VC world hearing pitches, identifying prospects, and then helping companies get off the ground is a challenge of a different order.

"Unless they're really putting hard dollars into it, they say, 'Oh, it's probably OK,'" said Timothy Faley, managing director of the Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies, which oversees Michigan's fund. "The difference between, 'It's probably OK' and them staking their name on this deal is pretty significant."

Faley says the arrangement is also good for the companies. If they get turned down for funding, as most are, they get better feedback than many professionals would bother to offer. And if they do get money, the businesses might also get continued help from students who advise them and who may even come aboard for internships or full-time jobs.

Most grants run five or six digits and are a small part of a funding package with other VC firms.

Utah's fund, which was founded in 2001 and plans to announce next month it has raised $5 million, has backed one company with a $100,000 investment and plans to announce another deal soon. Cornell's BR (Big Red) Ventures Fund, which has raised $500,000, has backed four businesses.

Michigan's $3.5-million Wolverine Venture Fund recently saw one of its portfolio companies go public; Faley says profits from the stock sale mean the fund is earning a slight positive return for the university's endowment.

In some cases, like Michigan's, the fund is supported by donations and is essentially a sliver of the university's endowment that is farmed off to the students to manage. At Maryland, the university is one of many investors.

At Utah, the money comes entirely from outsiders, including individuals and large investment firms.

For students, the programs demand long hours outside of class and typically little course credit, but they are very popular: 60 to 100 students apply for eight slots each year at Michigan, while Utah selects five to 10 from 100 applicants. In some cases, engineers, lawyers, and biologists participate, contributing their expertise. Utah accepts some undergraduates and students from other colleges.

The popularity stems in part from the desirability of jobs in venture capital, a tough field to break into.

"Apprenticeship is still the career path of venture capital," said Michael Grenier, a second-year Maryland MBA student from Columbia Falls, MT. "I passed up going to some of the other top schools to have a chance to come here and participate in this program."

But the programs also show students who want to start companies how to view their businesses through the eyes of a venture capitalist. About two-thirds in Michigan's program are "entrepreneur wannabes" rather than "VC wannabes," Faley said.

Some academics are skeptical of the programs' value. Michael Morris, a professor at Syracuse University's Whitman School of Management, says his school has avoided a true student-run fund, partly because it would demand full-time professional guidance and partly because of potential conflicts.

"If it's a campus-based venture fund, you've got other objectives, other than the pure financial objectives," he said. "You've got learning objectives."

But Maryland Professor Mark Grovic, who advises the $20-million New Markets Growth Fund (which also tries to spur community development), says learning and earning go together.

"The more successful we are from a financial or community development perspective, the better it's going to be for the experience of the students," he said.

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