Venture Capital Taken into the Classroom

When I teach about entrepreneurial finance I try to get the student to understand the financing relationship from both sides of the table. I tell them they need to understand how a banker or investor thinks and what drives them.
An AP article that ran in the Tennessean spotlights some innovative programs that truly put entrepreneurship students in the shoes of venture capitalists.
“In an effort to elevate their teaching beyond the usual case studies and guest speakers, a handful of schools are raising significant amounts of money to turn over — with a few strings — to students who invest in real startups. The hope is to better train both aspiring venture capitalists and aspiring entrepreneurs, who will need to know what it takes to catch an investor’s eye.”
The University of Maryland, the University of Michigan, Cornell University and the University of Utah all have implemented this type of program. These are examples of how far entrepreneurship education is moving ahead in major universities, through the investment of tens and even hundreds of millions of dollars into their programs.
Belmont and several other colleges here in the Nashville area also give students exposure to equity investment in entrepreneurial ventures in their programs.