Powering next-generation startups through student-led venture funds
The Rady Venture Fund (RVF) is a student-assisted venture capital investment fund at UC San Diego's Rady School of Management. RVF students gain hands-on experience in all stages of the investment process while enrolled in a three-course series: venture finance, investment analysis and venture capital fund management. They work with professors, venture capital industry professionals and entrepreneurs. Students perform comprehensive due diligence to make sound investment recommendations, monitor existing investments in start-up companies, and provide them with assistance when needed.
- An investment committee of experienced investment professionals and entrepreneurs reviews and approves all investment opportunities submitted by student teams.
- Proceeds generated by the RVF are directed back to the fund to support their educational objectives in entrepreneurship, innovation and transfer of discoveries to the marketplace.
- The Rady Venture Fund seeks investments for companies located in Southern California: life sciences, biotech, high-tech, information technology, communications and clean technology.
- The first investment was made in 2011. Students and advisors invested in AnaBios, a San Diego-based startup providing human-based drug response profiles in advance of clinical trials. In March 2013, the RVF made its second investment, participating in a $16 million Series B round, for Savara Pharmaceuticals. Lastly, in late 2013, student investors provided angel funding for GroundMetrics, a UC San Diego alumnus-run company focusing on enhanced oil recovery technology.
Rady Venture Fund seeks to revolutionize the MBA experience. Rady Venture Fund students gain the skills, perspective and competitive edge necessary to succeed in today's global, knowledge-driven economy. MBA students have opportunities to expand their experiences beyond their education; they are empowered to make investments in startup companies which benefit our economy. Help us educate the next generation of business leaders, and fuel startup ventures that are revolutionizing their respective marketplaces!
How will the fund focus its investments?
The Rady Venture Fund will make one to two investments per year. The fund seeks to invest in seed to early stage companies preferably located in San Diego or Southern California. The fund will invest in life sciences and biotech including medical devices, instrumentation and diagnostics; high-tech; information technology; communication and clean technology.
A typical investment will range in size from $75,000 to $150,000 on a fully funded basis. The fund will invest in equity or provide debt financing, mostly in the form of convertible debt.
Who manages the fund?
An external advisory board of experienced professionals and community leaders provides strategic direction and guidance for the fund and associated coursework. An investment committee, which consists of experienced investment professionals and entrepreneurs, reviews and approves all investment opportunities submitted by student teams.
The fund's management team, assisted by outside advisers, oversees the day-to-day operation of the fund, student involvement and any record keeping and reporting activities.
What will happen to the Rady Venture Fund's proceeds?
Any proceeds from the Rady Venture Fund will revert to the fund and to the Rady School of Management. Proceeds will be reinvested in the fund to create a growing pool of investment capital or be used to build the Rady School endowment and support entrepreneurial programs at the school.