In 2012, first round Capital, a Philadelphia VC ﬁrm, put $500,000 into a fund for students to invest in startups. Dorm Room Fund has since expanded to colleges in two more cities. Its 15 investments, mostly $10,000 to $20,000, include screen-sharing software Fireﬂy and online used-car retailer ZenKars. We spoke to First Round partner Phin Barnes.
Where did the idea originate?
“First, college students can create incredible companies. Second, the best VC funds are run like startups, so we should ﬁnd students who want to build a VC startup.”
How do you choose your committees of students?
“We have an open application for anyone from undergrads in liberal arts to people getting their PhD in biology. And as they graduate they select their replacements.”
How do they ﬁnd their investment opportunities?
“They tap their personal networks. They work to deeply understand problems and meet incredibly smart people.”
Check out our Festive offers upto Rs.1000/- off website prices on subscriptions + Gift card worth Rs 500/- from Eatbetterco.com. Click here to know more.
(This story appears in the 23 August, 2013 issue of Forbes India. To visit our Archives, click here.)