Ross ranked No. 8 among best business schools for VC-based entrepreneurs

PitchBook, a provider of private equity and venture capital research, released its annual list of the Top Universities for VC-Based Entrepreneurs. The University of Michigan was ranked No. 8, up from No. 13 in 2013.

The list is based on PitchBook’s database of 13,000 founders who launched VC-backed companies over the past five years.

Pitchbook’s methodology includes entrepreneur count, company count, capital raised (in millions) and successful launches founded by Bachelor’s Degree holders from each university.

Read more about the list on Poets & Quants here.

Mercury Fund Doubles Down on its Commitments and Investments in Michigan

Blair Garrou, the managing director of Mercury Fund, a Houston-based seed-stage venture-capital firm, is spending a lot of time in Michigan and the Midwest these days. The firm is raising capital for its third fund and has closed on more than $100 million in commitments from venture investors and investment pools, including the state of Michigan’s Renaissance Venture Capital Fund and Venture Michigan Fund.

“We expect to deploy 50 percent of our capital in the Midwest and half of that amount, roughly 20 percent to 25 percent, in Michigan,” Garrou says. “In our second fund, we put 27 percent of the capital we raised to work in Michigan, and we anticipate maintaining that same level with our third fund.” Mercury Fund is currently in the process of identifying another investment professional who will be based in Michigan and open the firm’s new Midwest office sometime this summer.

“We’re very excited to become even more active in Michigan, bring other venture investors into our rounds and help capitalize the next great wave of Michigan entrepreneurs,” Garrou says. Mercury Fund takes a different approach to venture investing than VCs on the east and west coasts. “We like to invest in capital-efficient software and science deals,” he explains. “We make small bets on early-stage technology companies, work closely with the entrepreneurs to drive value creation and then put more capital into the company down the road. This requires a lot of work, but we are able to find the winners without putting a great deal of capital at risk.” Michigan entrepreneurs fit well into this model because they tend to be very capital efficient and willing to bootstrap emerging companies up the point where they can raise venture capital on a modest basis, he adds.

Garrou says several Mercury Fund investment themes are playing out well in Michigan. The first is commercialization of the industrial Internet. “Workers who are accustomed to using social, mobile and cloud computing want to integrate those types of products and applications within their businesses,” he says. “Manufacturing, utility and energy companies have been slow to adopt these advanced Internet technologies, but we see a sea change coming.”

The trend toward re-shoring manufacturing operations back to American soil from foreign countries is another factor driving increased manufacturing and industrial sector activity in and around Michigan. “Many VCs are narrowly focused on 3D printing, but we see a lot of areas in manufacturing, including robotics, next-gen design and CAD systems and other software applications, that need to be improved when new U.S. facilities are built,” Garrou notes. “Michigan and the Midwest have great strength in these areas.”

A third thematic investment area favored by Mercury Fund revolves around technological breakthroughs in the life sciences and physical sciences coming out of the University of Michigan and other universities. “The core technologies being created at U-M and Michigan State University are world-class, and we don’t see many investment groups, other than a few Michigan funds, focused on these,” Garrou reports. Mercury Fund’s early venture investment in Ambiq Micro, which was spun out of U-M, is poised to pay off. The company is developing a portfolio of ultra-low power semiconductor products that improve battery usage in smart devices. With the proliferation of wearable computing, he predicts it will “make a huge splash” in that area.

At the upcoming Michigan Growth Capital Symposium in June, Garrou will moderate a panel discussion on VC trends in the Midwest. The three participants on the panel will include venture investors who are first-timers at the symposium and have an interest in doing more deals in Michigan. “The goal for all of us is to drive Michigan’s entrepreneurial companies to get a little bigger and gain a little more traction, so they will be able to attract VCs from the coasts and bring additional capital resources to the state,” he says.

“Out of Failure Springs Innovation”

Stewart Thornhill, executive director of the Zell Lurie Institute of Entrepreneurial Studies, reported for the Financial Times on the most important business school takeaway for entrepreneurs–failure. In the article, Thornhill explains that an entrepreneur should be able to view failed projects as learning experiences that add value to their overall growth as business moguls. Using examples such as his experiences attending entrepreneurial competitions and Thomas Edison’s failed attempts at creating the light bulb, Thornhill emphasizes that failure is a part of the startup process. Thornhill concludes by stating that the Zell Lurie Institute embraces failure and the idea of change as it wants to encourage MBAs to take the risk of starting businesses.

To read the full article by Thornhill, click here.

Annual Private Equity Class Dinner

The Center for Venture Capital and Private Equity Finance is holding its annual Private Equity class dinner today, sponsored by Chicago-based Glencoe Capital. During the dinner hosted by Professor David Brophy of the Ross School of Business, the class will participate in a “Bake-Off” buyout pitch competition where the winning team will receive the $7,500 Alan Gelband Private Equity Award and the runner-up will receive $2,500. Alan Gelband, founder and CEO of New York-based Gelband Company and David Evans, founder, CEO and chairman of Glencoe Capital will present the awards.

Ross Alum Savors the Entrepreneurial Climate at Mobile-App Start-up Atmospheir

Alex Rich, BBA ’11, was well on his way to building a successful investment-banking career in in New York City when he was “bitten by the entrepreneurial bug.” In June 2012, he left his position as an investment-banking analyst at Citigroup in Lower Manhattan and walked down the street to the Tribeca office of mobile application start-up Atmospheir, where he signed on as vice president of operations. “The concept that Atmospheir was advancing was powerful enough to compel me to change course,” Rich explains.

His roommate at the University of Michigan piqued his interest in the company by introducing him to its founder and CEO. Over the past 18 months, Atmospheir has designed and developed a mobile application that allows users to share all of their contact information and social network presences via a single, unique ID that they create. According to Rich, the app is a social re-imagination of the address book that provides a perpetual solution to contact management. Recently, the start-up got the official nod from Apple to market its mobile application online through the App Store.

While this is Rich’s first foray into the realm of new venture creation, he says the Ross School’s highly diverse core curriculum helped prepare him to work effectively in a challenging, multifaceted start-up environment. “Any time you join an early-stage company with a small team, you inevitably have to wear many hats,” Rich observes. “Ross equipped me with a broad-based business skillset in accounting, finance, marketing and other functions that I needed to help build a business from scratch.” That skillset is being put to the test daily, as the fledgling company develops its rollout strategy, promotes its brand, formulates its revenue model and pursues seed funding from venture investors. “In the back of my mind, I had hoped someday to transition to a venture-capital or private-equity firm where I could work with younger, less-established companies,” Rich says. “Last year, I took that vision one step further by going directly to work at Atmospheir.”

Zell Lurie Institute Awarded Top Honors by The Princeton Review and Entrepreneur magazine

We are excited to announce that The Princeton Review and Entrepreneur magazine have named the Samuel Zell & Robert H. Lurie Institute as the number one graduate entrepreneurship program in the nation. This marks the fourth consecutive year we have appeared among the top five, advancing from second place in 2012 to the top spot for the first time.

We at Zell Lurie consistently strive to instruct how to build successful, new business concepts around advanced technologies and have provided scholarships, grants, competition awards and internship funding to help advance new venture development and the entrepreneurial skills for our students.

It is an honor and a privilege to be recognized in this light. We are proud of the accomplishments of the Institute, its faculty and current students and alumni for their achievements. It is because of them and our unique, action-based approach to entrepreneurial education that our Institute stands out from the pack and will continue to do so.

For more information, read the press release online here. 

12 Ways You Can Become An Entrepreneur

While there may not be a perfect recipe to becoming your own boss, there are some things that you can do today to put yourself on the path toward entrepreneurship.

Want to learn more? Jim Price shares his insight on the 12 most common ones, along with some honest talk about the pros and cons of each, with Business Insider. Check out the full article online.

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