The small business investing scholars program provides invaluable financial and mentoring support for university students to start their own companies. As an increasingly popular initiative by top schools, it allows young entrepreneurs to gain real-world business experience while still in school. With selective admission, intensive training, seed funding, and mentorship from alumni, the program helps students test and validate their business ideas. By reviewing several exemplary programs in this article, we can better understand how the small business investing scholars program empowers the next generation of entrepreneurs.
stanford’s small business investing scholars program enables early-stage investing
Stanford University’s small business investing scholars program, launched in 2017, provides up to $20,000 in funding for students to invest in early-stage startups. Through a competitive application process, around a dozen MBA students are selected each year. In addition to the capital, admitted scholars receive in-depth training on venture capital, angel investing, valuation techniques, and term sheet structuring. Students source investment opportunities themselves and manage the end-to-end process of researching prospects, performing due diligence, negotiating terms, and monitoring the investment. The hands-on experience allows scholars to learn essential VC skills while also generating returns for the university’s endowment. According to statistics, participating students have invested over $2.5 million into 35 startups so far. The program exemplifies how top business schools leverage their resources to nurture young investors and entrepreneurs.
harvard’s labyrinth program connects students with alumni angels
The Labyrinth program at Harvard Business School offers an innovative model for investing education. Through the student-run organization, participants can join as analysts to perform due diligence and manage portfolio companies. The funding comes from alumni angel investors who act as limited partners. Once admitted into the program, students collaborate closely with alumni mentors to source deals, conduct research and financial modeling, and structure investment terms. The hands-on learning allows students to understand real-world investing while alumni enjoy deal flow access and informed guidance on opportunities. Over 90 students and 100 alumni have participated in the program over the past decade. So far, Labyrinth has deployed $6 million into 26 startups, with successful exits including DraftKings and Osmo. The program provides a mutually beneficial platform for students and alumni to engage in early-stage investing and entrepreneurship.
Wharton’s vipp program receives backing from school’s endowment
The Venture Initiation Program at Wharton runs a small business investing scholars program called VIPP (Venture Initiation Program Project). Each year, a select group of 12 MBA students is admitted into the program to source, perform due diligence, and invest in high-potential startups. What sets VIPP apart is its backing comes from the Wharton endowment itself. Admitted scholars can invest up to $100,000 allocated from the endowment into seed stage companies. Beyond capital, the program focuses on intensive coaching and mentorship from school faculty and alumni. Students learn structured investing frameworks and receive individualized feedback on how to improve their skills. Over its 20-year history, VIPP students have invested over $20 million into more than 150 startups. With the hands-on experience and school network support, the program has emerged as a leading destination for MBA students aspiring toward venture capital and entrepreneurship careers.
In conclusion, the small business investing scholars program at top business schools provides invaluable real-world experience for young entrepreneurs to learn investing skills while collaborating with alumni and deploying capital into startups. With meticulous training and funding support, the program enables students to validate their own business ideas as well.