JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Considering a Student Managed Venture Capital Fund?
Approaches, Benefits, and Performance
Author(s): William A. Andrews, John M. Tichenor
Citation: William A. Andrews, John M. Tichenor, (2014) "Considering a Student Managed Venture Capital Fund? Approaches, Benefits, and Performance," Journal of Applied Business and Economics, Vol. 16, Iss. 4, pp. 22-30
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper explores the rationale for and performance of student-managed venture capital funds. In
particular, it seeks to identify whether the performance of student-managed funds is inferior to
professionally-managed funds. The results suggest that professionally-managed funds may perform better
than student managed funds, but this difference disappears when comparing investments made 7 or more
years ago – a typical holding period for a VC firm. Pedagogical benefits of having a student-managed
fund are discussed, and guidelines of implementing a student-managed VC fund are derived.