Crafting the next generation of angels: a promising model in experiential learning

Abstract

ABSTRACT In an academic environment there are various pedagogies for learning about angel investing, all with various levels of engagement, cases, academic research, and lectures. This paper provides one model of a successful pedagogy that is grounded in experiential learning modalities, the student angel investment fund. It outlines the opportunities, challenges, and key determinants of success, based on the experiences of an existing student angel fund. The Rines Student Angel Investment Fund (the Fund) is a cross-disciplinary, undergraduate, student-managed angel investment fund that allows students to learn angel investment strategies through the first-hand experience of investing in start-up companies that are external to the university. The infrastructure needed to launch the initiative was an established presence in the angel market, a willing donor, a university amenable to having students run a high risk investment fund, and required developing and facilitating relationships with angel groups and demonstrating to the angel partners the value-add the Rines students could provide. The investment and due diligence process include multiple student presentations to the class, various levels of student participation, interaction with entrepreneurs and the Fund mentors (external practitioners), presentations to the angel partners and to an investment committee of professional investors.