The University Venture fund (UVF) is the largest student run Venture capital firm in the world, looking after a relatively small fund of $18 million to invest in technology startups.Founded in 2001, the UVF was started at the university of Utah primarily as a hands on teaching vehicle for students to learn the ins and outs of entrepreneurship and investment by investing real money from some quite well known Limited partners. How the fund operates is that students invest 20 hours a week of their time in researching, conducting due dilligence, creating financial models and evaluating startup teams before pitching their proposed investments to the managing partner of the fund and volunteer VC's which provide advice to the student associates.
The UVF was kicked off with a donation of $500,000, granted to UVF by one of Utah's most successful entrepreneurial families, billionaire medical device inventor James LeVoy Sorenson and son James Lee Sorenson, CEO of Sorenson Media. SInce then the fund has attracted limited partners such as legendary Silicon Valley VC, Tim Draper and established firms like UBS Bank USA and Morgan Stanley Bank. Support to the 25 student associates are given by established venture firms such as Bain Capital,European Venture Partners, ITU Ventures etc.
In 5 years the fund has made 10 investments in companies such as BaroSense Inc., LignUp Inc., Omniture Inc., Socialtext, Chakshu Research Inc., Infinera, HandiQuilter, InteliSum and Merrimack Pharmaceuticals and most recently Alianza.
Most importantly the fund is utilised by professional investors to scout for emerging trends in new media, internet or mobile technologies.
"College students have a knack for uncovering excellent venture capital investment opportunities created by their contemporaries, like Alianza," said Jared Hutchings, founder and managing director of UVF. "They are immersed in high technology, especially communication and Internet services. Because companies like YouTube and MySpace seem to pop up out of nowhere and quickly establish new Internet-industry categories, professional private equity partners that collaborate with UVF can use students as their eyes and ears to effectively search out high-tech and consumer trends."
Firstly this represents a fantastic way for students to get VC experience with real money and using their own judgement. Secondly, it enables VC's to have a Youthh ear on the ground.
If you are a professional investor and you are looking to do the same in Europe i'd be happy to open proceedings with a few other Young Entrepreneurs here.
3 comments:
Hi Sumon
I found your blog today as I am looking for the best bloggers based on investors and entrepreneurs news. It was good to see that you had been working for Library House recently as a researcher consultant. I have started today as an inside sales executive and am working on my first task, finding the best bloggers around for an upcoming event that we are organising in Nov. Are you able to point me in the right direction? Thanking you in advance for your time, assistance. Wishing you a good rest of your day.
With kind regards from Cambridge,
Dalida =o)
What an interesting idea - the best bloggers. I would be interested to know who those are too. What do you think Sumon?
Is there a fund like this in the UK? Maybe the same private venture capital firms supporting this American student fund (ITU Ventures etc.) would also be willing to support a venture fund like this in the UK.
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