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    VCs and university endowments should partner to make venture more diverse – TechCrunch

    Matthew Mendelsohn Accession Becoming the new Chief Investment Officer at Yale University marks a milestone in the rise of university funds investing in venture capital.

    Since joining the Yale Investment Office in 2007, one of Mendelson’s central focus has been venture capital, an asset class that has been gaining more and more attention among institutional investors in recent years, Yale. Investment approach for a long time model For other donations.

    However, despite the increasing diversification of investments by funds, they face increasing pressure to consider ESG initiatives, many of which may drive the returns they seek in the coming decades. there is.

    For example, many college students are asking fund leaders to withdraw from fossil fuels. Another idea that the fund should consider is: Invest in educational opportunities to provide more people with a career path in ventures.

    In the venture world, there are few internships or fellowship opportunities for future VC investors to actually experience the inside and outside of working in a venture. This perpetuates the very closed ecosystem of adoption in VC. Jobs are rarely posted there, and warm referrals are really essential.

    Donations are perfectly arranged to change this. By adopting a partnership approach with VCs rather than just a more transactional approach as a limited liability company, the fund can achieve several things at once.

    They can continue to invest in the funds they consider to be the best investment. They can support and expand opportunities for people who are interested in working in a venture, especially for a diverse range of individuals who may not have a connection with a VC company. And they can set themselves up to have a close relationship with an avid learner. Some of them want to make those donations into LPs someday.

    In many cases, this could also include greater collaboration between the endowment and the university’s career center. Universities, whether funded or educated, may have an existing relationship with VCs.

    If the fund is affiliated with VCs on these initiatives, the fund can form a program to best serve the people within it. Many of the internship and fellowship programs that exist today will be a free (or low-paying) workforce for internships or fellows to perform due diligence and scout startups that VC companies may want to invest in. Designed for.

    This is not entirely worthless to the participants, but the program deliberately focuses on the education and support of the participants and gives them broad access to the types of work that VCs do. You need to start with an approach. Spend time learning directly from investors.

    Existing programs like BLCKVC Black Venture Institute, Recast Capital Enablement program And VC include fellowship First-time fund managers offer an excellent model of effective and comprehensive venture education.And a program like Black Venture Capital ConsortiumSummer internships are exciting in connecting HBCU undergraduates to VCs for internships, but with the full collaboration between donations and VCs just described, a synergy of participant-first education programs. The effect may be further enhanced.

    By acting as a partner in these educational programs, Funds and VCs can also begin to restructure their venture capital to include investors from different backgrounds.When 93% of venture dollars currently managed by white menThe need for greater diversity in the industry cannot be clear, and funds working to expand the venture ecosystem are in a clear position to defend these efforts.

    This kind of partnership is a mutually beneficial situation for all involved. By supporting the path to increasing venture diversity, funds and VCs can help usher in a new era for the industry. In this industry, investors with much more diverse backgrounds identify and assist startups that older security guards don’t even come across or think about.

    Donations were in a good position to play such long games and could not better coordinate the interests of all parties involved in these initiatives.

    VCs and university endowments should partner to make venture more diverse – TechCrunch Source link VCs and university endowments should partner to make venture more diverse – TechCrunch

    The post VCs and university endowments should partner to make venture more diverse – TechCrunch appeared first on California News Times.

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