For years, the goal of most student-managed investment funds on business school campuses has been to make a profit, rather than change the world. Now, two business schools that operate student-run venture funds, the University of Michigan’s Ross School of Business (Ross Full-Time MBA Profile) and the University of Utah’s David Eccles School of Business (Full-Time MBA Profile), are trying to do both at the same time.
The Ross School announced last week that it had launched a new Social Venture Fund, where students will invest in for-profit companies that have a “significant social impact” as part of their mission, according to a school press release. The students involved with the project will make investments of up to $200,000 in early-stage companies that can deliver returns in five areas: education, environment, finance, food and nutrition, and health and urban revitalization, according to the release. The student-run fund will focus on companies based in the Detroit and Southeast Michigan area and will make its first investment this spring, the school said.
The University of Utah also announced last week that it had created the University Impact Fund, a venture fund that also will have a social impact and sustainability mission. Students at the school plan to raise $10 million to $15 million from investors and then invest those funds in startups that work in areas such as clean water, waste management and alternative energy. Any profits students make will be returned to investors, the school said.
Read the full article: Student Venture Funds Tackle Social Problems