ENTREPRENEURSHIP AT THE CARUTH INSTITUTE

How the MBA Venture Fund Works

Students take the Venture Capital Practicum course offered by the Caruth Institute each spring. They are responsible for evaluating investment opportunities for the Cox MBA Venture Fund. Working with actual venture investment professionals in the Dallas-Fort Worth area, students:

• Perform competitive analyses.
• Analyze market opportunities.
• Develop an understanding of a target firm’s role in the value chain.
• Examine the sales distribution channels.
• Assess the barriers to entry.
• Evaluate a target company’s financials.

Following the due diligence, students who have identified deals deemed worthy of investment present their cases to the Cox MBA Venture Fund Advisory Board. If a deal is approved by the board, it goes before the Cox MBA Venture Fund Investment Committee. As with any investor, the fund realizes a return when the company it has invested in experiences a liquidity event, such as an acquisition or initial public offering (IPO).