Rady Venture Fund
Frequently Asked Questions
How does the fund work?
Students gain hands-on exposure to all stages of the investment process while enrolled in a rigorous, three-course series in venture finance, investment analysis and venture capital fund management. They work with a diverse group of people inside and outside the university including professors, technical experts, venture capital industry professionals, angel investors and entrepreneurs.
Students generate and screen investment leads, perform comprehensive due diligence, make investment recommendations to the investment committee, analyze investment decisions, monitor portfolio companies and provide them with assistance whenever possible. Any investment requires investment committee approval and syndication with at least one other direct external investor.
How will the fund focus its investments?
The Rady Venture Fund will make one to two investments per year. The fund seeks to invest in seed to early stage companies preferably located in San Diego or Southern California. The fund will invest in life sciences and biotech including medical devices, instrumentation and diagnostics; high-tech; information technology; communication and clean technology.
A typical investment will range in size from $75,000 to $150,000 on a fully funded basis. The fund will invest in equity or provide debt financing, mostly in the form of convertible debt.
Who manages the fund?
An external advisory board of experienced professionals and community leaders provides strategic direction and guidance for the fund and associated coursework. An investment committee, which consists of experienced investment professionals and entrepreneurs, reviews and approves all investment opportunities submitted by student teams.
The fund's management team, assisted by outside advisers, oversees the day-to-day operation of the fund, students' involvement and any record keeping and reporting activities.
What will happen to the Rady Venture Fund's proceeds?
Any proceeds from the Rady Venture Fund will revert to the fund and to the Rady School of Management. Proceeds will be reinvested in the fund to create a growing pool of investment capital or be used to build the Rady School endowment and support entrepreneurial programs at the school.