David Eccles School of Business Creates Nation’s First Independent Student-Run Venture Capital Fund Investing in Solutions to Social and Environmental Problems

SALT LAKE CITY--(BUSINESS WIRE)--The University of Utah’s David Eccles School of Business today announced the creation of the nation’s first independent student-run venture capital fund investing in startup companies designed to solve problems associated with social issues such as poverty and pollution while generating a profit for investors.

“We have a highly successful model for our experiential business education program in our affiliate, the University Venture Fund (UVF)”

The University Impact Fund (UIF – www.uimpactfund.com) taps into the emerging “impact investing” industry that applies the disciplined methods of private equity investing—from due diligence to exit strategies—to the desire to solve some of the world’s most vexing social and environmental problems. Impact investors, for example, may put profit-seeking capital into services such as microloans, mobile banking or affordable housing for people at the bottom of the global economic pyramid, nearly 4 billion of whom live on less than $2 a day.

“Impact investing is different from what is called ‘socially responsible investing,’” said Lewis Hower, UIF director. “Impact investors actively seek out startup companies aimed at generating solutions rather than applying negative do-no-harm screens, such as, ‘Does this company violate pollution or human trafficking laws?’”

UIF students will participate in a hands-on business education program, not a classroom exercise. Students will work with entrepreneurs, CEOs and investors and are responsible for due diligence, market analysis and the entire spectrum of tasks critical to the fast-paced, high-risk world of venture capital. “We have a highly successful model for our experiential business education program in our affiliate, the University Venture Fund (UVF),” said Hower. Begun in 2004 at the David Eccles School of Business, UVF was the country’s first self-sustaining student-run venture capital firm and is the largest fund with $18 million. More than 200 students have gone through UVF and many are now working in top U.S. and international business firms.

Like UVF, the new program is open to graduates and undergrads from any discipline and from several different universities. Students must commit to a minimum of 20 hours per week. In return, they work under the direction of some of the most accomplished mentors available anywhere. On the UIF board are Geoff Woolley, who founded Dominion Ventures and European Venture Partners and is actively involved in microlending, and Jim Sorenson, co-founder of Sorenson Capital, chairman of the board at Sorenson Media and MediConnect Global and founder of the Sorenson Housing Opportunity Fund.

The first UIF goal is to build a network in the impact investing community and establish long-term relationships, said Hower. Sometime next year UIF will begin raising money for investment. Eventually 25-30 students at a time will participate in operating what they hope will be a benchmark social venture capital program. Two UIF students already have begun providing business services to local and international social entrepreneurs, said Hower. One, Waste Ventures, invests in solid waste management facilities owned by trash pickers in India and was founded by a University of Chicago graduate. The other, Eco Scraps, was begun by college students from Utah and picks up unsold produce from large retailers, such as Costco, and composts the organic matter into fertilizer.

“Many business students today want to do good for others, not just do well for themselves,” said Taylor Randall, dean of the David Eccles School of Business. “We hope our experiential education program will have an important positive effect on impact investing as we train top students from universities around the globe to analyze, create and run successful social ventures. UIF is a real-world educational opportunity students cannot find anywhere else.”

About University Venture Fund

Founded in 2001 at the University of Utah’s David Eccles School of Business, University Venture Fund (UVF) is an independent venture capital firm committed to improving the quality of entrepreneurial education for a diverse group of students at its participating universities. The fund is a collaborative effort among students, universities and the professional investment community in which students raise capital, perform due diligence on venture capital opportunities and make investments. In addition to being the largest fund of its kind, UVF is the first fund for which students raised all the capital and the first student-run fund that has a traditional limited-partner relationship with its investors. Each year UVF hosts the University Private Equity Summit when business students from around North America gather to share best practices and learn from investment industry professionals. Visit www.uventurefund.com.

About the David Eccles School of Business

Founded in 1917 in Salt Lake City, the David Eccles School of Business has programs in entrepreneurship, technology innovation and venture capital management. Emphasizing interdisciplinary education and experiential learning, it launched the country’s largest student-run venture capital fund with $18.3 million, and is home to the Pierre Lassonde Entrepreneur Center and the Sorenson Center for Discovery and Innovation. Approximately 3,500 students are enrolled in its undergraduate, graduate and executive degree programs as well as joint MBA programs in architecture, law and health administration. For more information, visit http://www.business.utah.edu.