TLDR:
- Student-run venture capital funds and venture fellow programs are common on elite college campuses.
- There is a need for a new model in the student entrepreneurship ecosystem to support and promote student founders.
Frederick Daso discusses the current state of student entrepreneurship in colleges and universities, highlighting the emergence of student-run VC funds and venture fellow programs. He notes a divide in the purpose of these funds, with some focusing on promoting student entrepreneurship while others prioritize investments that can later secure funding from parent firms. Daso suggests that more emphasis on cultivating student entrepreneurship can lead to a wider array of student founders receiving support from VC firms. Comparing the follow-on investment rates of student-run funds like Dorm Room Fund and General Catalyst’s Venture Fellow program to traditional VC firms, Daso argues for a new approach that includes grants for early-stage startup teams and a focus on developing founders’ skills before seeking venture capital. He concludes by advocating for a disruptive student-run fund or venture fellow program that can identify and invest in promising ideas ahead of the curve, thus positively impacting the entrepreneurship ecosystem.
