ENTREPRENEURSHIP AT THE CARUTH INSTITUTE

MBA Venture Fund History

In the fall of 1998, Jerry F. White, director of the Caruth Institute for Entrepreneurship, made a presentation to the Cox School’s Executive Board. Board Member Phil Romano, president of Romano Concepts and founder of such restaurants as Macaroni Grill and Fuddruckers, subsequently approached White to discuss the possibility of starting a pioneering program that would further differentiate the school. The two considered everything from a student bank to a student venture fund. After carefully exploring the ideas, White decided the venture fund was the most viable option. Romano provided the necessary capital to get the fund started, and in 1999 the Cox MBA Venture Fund was launched.

As the Cox MBA Venture Fund gained notoriety, Ken Morris, co-founder of PeopleSoft, contributed additional capital in December 2000 to ensure the fund sustained its momentum. Not long after this second infusion of capital, Cox Dean Al Niemi named White as director of the fund, bylaws were drawn up, an investment committee was designated to review all potential investments, and an advisory board – consisting of several venture capitalists, an “angel” investor, and three SMU Cox faculty members – was put in place. Next, White and students in Caruth’s Venture Capital Practicum course turned their attention to finding a deal worth investing in.

In the spring of 2002, a pair of Cox MBA students identified the first promising investment, mysedan. Since its inception, 40 students have taken the Venture Capital Practicum, evaluating some 20 deals, four of which were approved for funding.