MSU Research Foundation and Broad College of Business Announce 2023 Student Venture Capital Fund Investment in Startups
East Lansing, Mich. –– The Michigan State University Research Foundation (MSU Research Foundation) and Broad College of Business Center for Venture Capital, Private Equity and Entrepreneurial Finance have announced recommendations for pre-seed investment in five promising Michigan-based startups at the fifth Student Venture Capital Fund (SVCF) Investment Celebration event held April 11 in East Lansing. The MSU SVCF gives MSU students taking FI 444: Entrepreneurial Finance hands-on experience in venture capital investing. In the class, students review a pipeline of early-stage startup companies from the entrepreneurial ecosystem and conduct investment selection, due diligence, market and competitive analysis, and valuation analysis to make an investment recommendation to Red Cedar Ventures, a wholly owned venture capital subsidiary of the MSU Research Foundation.
The five companies chosen this year were:
Smart Bridge Medical, Inc. develops and advances medical devices that help protect patients who require long-term ventilator support.
Audio Radar enables deaf and hard of hearing gamers to "see the sound" by visualizing directional audio events within video games.
Revolin Sports develops and manufactures high-performance, planet-friendly sporting equipment for the fast-growing pickleball market.
Bee Corp helps growers and beekeepers measure and communicate pollination value through infrared image analysis software.
Kall Morris, Inc. is pioneering an innovative solution for capturing and removing space debris in orbit.
"The Student Venture Capital Fund is a unique opportunity for students to engage with entrepreneurs, learn real-world practices, and prepare for their post-graduation journey," said Hayong Yun, Associate Professor and Co-Director of the Center for Venture Capital, Private Equity and Entrepreneurial Finance at MSU. "As an educator, it's truly inspiring to see the remarkable growth of our students throughout this process."
The SVCF program has provided more than $200,000 of pre-seed and seed stage investments deployed in 19 separate companies. Those companies have gone on to raise over $27.6 million from dilutive and non-dilutive sources.
"Classroom learning through reading and lectures is valuable, but nothing compares to the practical experience of real-world due diligence," emphasized Jeff Wesley, executive director of Red Cedar Ventures. "Students gain a deep understanding that goes beyond textbooks when they make investment decisions based on intangible factors. They quickly learn how much influence the founding team has on making investment decisions."
The current MSU SVCF portfolio is a diverse set of investments covering many sectors. Most of the companies in the portfolio have experienced success this past year, many of them attracting new angel and venture capital investments in addition to winning grants for non-dilutive sources available from the State of Michigan and federal government programs.
“Having the students think through priced investment rounds, debt conversions, bridge financings and standard venture metrics in a real portfolio will make them more attractive candidates upon graduation,” Wesley added. “We believe this partnership will help solidify the Broad College at Michigan State as a producer of emerging talent for the venture industry.”
The SVCF also has an outstanding team with many different majors/minors represented. The class includes finance, management, supply chain, engineering, computer science, neuroscience and biology majors – and students in the entrepreneurship minor.
"Our collaboration with the MSU Foundation brings valuable hands-on experience to Broad undergraduates interested in venture capital investing," continued Yun. "And it contributes to the broader innovation environment, as the MSU Research Foundation builds a portfolio of early-stage startup companies originating from within our MSU community."
The fifth Investment Celebration Event of the MSU SVCF attracted 100+ participants, including many MSU alumni in the venture industry, advisory board members and guests.