Ann Arbor, MI (USA), April, 2012 - The Social Venture Fund of the Institute for Entrepreneurial Studies at the University of Michigan's Stephen M. Ross School of Business has closed its first investment. This marks the first-ever investment made by a socially oriented student-led venture fund.
The Fund joined a syndicate of seventeen investors in a Series A round investment totaling $2.4 million in LearnZillion, a web-based platform that gives students, teachers, and parents access to a video library of high-quality, standards-based lessons taught by the nation's top teachers.
The Social Venture Fund seeks to make early-stage investments of up to $200,000 in sustainable, innovative, for-profit organizations that deliver financial returns and place the generation of a significant social impact at the heart of their mission. It is managed by Gautam Kaul, Professor of Finance at the Ross School of Business and by 34 students who have wide-ranging experience in fields that include technology, investment, and education.
Along with the Wolverine Venture Fund and Frankel Commercialization Fund, the Social Venture Fund completes the University of Michigan's trifecta of student-led venture funds, managed by the Zell Lurie Institute, which effectively immerses students in experiencing all aspects of venture-capital investing.
A team of nine students, led by Emily Airey MBA '12 and Daniel Reyes MBA '12, which consists of business and law students, sourced the deal. Before the final decision, it conducted in-depth due diligence on the company, which proved valuable to several of the deal's investors.
Eric Westendorf, co-founder of LearnZillion, noted that the enthusiasm and thoroughness demonstrated by the students from the Social Venture Fund was impressive. They were extremely assiduous in their due diligence, and both the information and excitement they shared proved extremely valuable in helping to get other investors on board. He feels the Social Venture Fund has and will continue to play an important role as the company tries to create positive change in today's education system.
LearnZillion currently focuses its lessons on grades three through nine, with a focus on math. This funding will help the company accelerate content development by bringing on additional staff and developing additional material. Other investors include O'Reilly Alpha Tech Ventures, DC Community Ventures, and Learn Capital Venture Partners.
