Venture Capital & Private Equity

For students with career aspirations in venture capital or private equity (buyouts) the Ross School of Business offers a suite of courses and learning initiatives that provide students with the opportunity to develop their finance knowledge, round out their industry experience, and increase their network of institutional VC/PE business leaders, angel investors and executive officers of venture-backed firms.

Unlike investment banking, which is a transaction business done for fees, venture capital or private equity is a principal business done primarily for capital appreciation from funds invested. They differ in that venture capital is focused on technology-based early stage finance while private equity is focused on financing the expansion, turnaround, and acquisition funding of established companies from a broader industry base. Candidates entering these industries must have a well rounded background in finance, marketing, manufacturing, and corporate strategy.

Center for Venture Capital & Private Equity Finance
Led by Professor David J. Brophy, the Center contributes to the full spectrum of student-centric, action-based learning, which forms the core of entrepreneurial education and programs administered through the Ross School of Business's Zell Lurie Institute for Entrepreneurial Studies. Founded in 1994 with a specialized focus on entrepreneurial finance and investment, the Center offers research, teaching and practitioner programs to encourage the channeling of equity capital to build companies and to harvest and recycle capital in emerging fields. Through initiatives, such as the annual Michigan Growth Capital Symposium, the Center connects the Ross School network with the broader financial community comprising entrepreneurs; managers; investors and public policy makers whose decisions affect entrepreneurship and equity investment. The Center also seeks to increase sustainable job growth and income, commercialization, and wealth creation by fostering entrepreneurial activity and research in local, regional, national and international markets.

U-M Based Student Led Investment Funds
The $3.5 million dollar Wolverine Venture Fund invests primarily in early stage companies. The Fund is one of the world's first VC funds where students are partners in the investment decision-making process. The Fund's students members seek, screen and negotiate investments and develop significant experience in these areas - and in working with VCs and entrepreneurs. An eight-member advisory board of professional venture capitalists and entrepreneurs, and 18 MBA students participate in managing this multi-million dollar fund.

The pre-seed Frankel Commercialization Fund places teams of MBAs with University of Michigan researchers. Frankel Fund participants evaluate and invest in early stage entrepreneurial opportunities, and learn about the commercialization evaluation process and how to be a seed investor. Teams work closely with medical and engineering research units and with the Office of Technology Transfer for University-owned ideas in the process of commercialization. The Fund is also supported by an advisory board comprised of individuals who have been successful in developing early-stage companies, markets and technologies.

Courses, Competitions, and Internships
For students with career aspirations in venture capital or private equity (buyouts) there are a suite of courses offered Fall and Winter terms. These courses are cross-listed between Finance and Entrepreneurial Studies. They are essential for developing the necessary levels of financial knowledge and general business acumen needed to move toward a successful career in these industries.

Through Marcel Gani internship placements with domestic venture capital firms, students have a chance to apply their classroom knowledge and refine their venture funding skill set while helping management teams accelerate their business.

Students may also attend or compete in one of the many business-plan competitions held on or off campus and get acquainted with competition judges who are often entrepreneurs or venture investors with long track records and well-established networks. Each year the Institute sponsors a team of students to compete in the national Venture Capital Investment Competition in which students are exposed to a variety of activities that must be integrated into a cohesive investment strategy to be pitched to venture capitalists.