Yale Bulletin and Calendar

February 16, 2001

Volume 29, Number 19

Yale SOM launches student-
managed venture capital fund

The Yale School of Management (Yale SOM) launched a new M.B.A.-managed venture capital fund called Sachem Ventures, LLC, a $1.5 million venture capital investment fund that is unique to the business school arena.

It is the only fund of its kind run by Yale M.B.A. students who can invest in local startups. Ten percent of the school's student body help manage the fund.

Unlike other student-managed funds affiliated with U.S. business schools, Sachem can invest on its own, without the requirement that it must always invest alongside of another professional venture capital fund. Sachem plans to invest $75,000 to $125,000 in startup and early stage companies that are based in Greater New Haven. The fund will consider any industry, except for real estate.

Yale SOM Dean Jeffrey E. Garten hosted a celebration on Feb. 7 to announce the fund; in attendance were the school's students, faculty, staff and alumni.

David M. Cromwell, adjunct professor of entrepreneurship at Yale SOM and president of Hillhouse Advisors, the nonstock company that manages Sachem Ventures, told the gathering: "Our mission is to help create jobs and wealth in New Haven and to provide valuable learning opportunities for Yale M.B.A. students. We can achieve these worthwhile goals while successfully serving the fund's investors.

"To the best of my knowledge, there is nothing quite like Sachem Ventures anywhere else in the country," added Cromwell, former chief executive officer of J.P. Morgan Capital Corporation. "It's aptly named 'Sachem,' which calls upon the Native American term for head chief, because it is the chief among chiefs in terms of venture funds of this sort."

Sachem also has announced its first investment. According to its new business manager Cebra Graves, a second-year student at Yale SOM, "We're open for business and are pleased to have made an initial investment of $100,000 in a promising local firm named Higher One." Higher One is a venture-backed New Haven company that provides customized financial services to the higher education market. Graves is one of more than 40 students at Yale SOM who are actively involved in helping to manage the daily operations of the fund.

Sachem's investors include Zilkha Venture Partners, the New Haven Savings Bank and Yale University. M.B.A. students from Yale's business school help Sachem on due diligence for new investments. They give advice and technical support to Sachem's portfolio companies after Sachem makes an investment. Sachem Ventures is an independent venture capital fund and is not part of any academic program at Yale.

T H I SW E E K ' SS T O R I E S

New scholarship seeks to boost diversity in EPH

Exhibit celebrates 'Paul Mellon Bequest'

Columnist condemns 'infotainment' trend

Producer calls for more ethics in filmmaking

Students learning their letters in weekly calligraphy club

Yale SOM launches student-managed venture capital fund

NFL commissioner to discuss future of pro sports

New society advocates use of ecological concepts in industry

Senior Ben Trachtenberg wins prestigious Mitchell Scholarship

Liman Colloquium will examine law enforcement practices

Students will test skills in 'ultimate mind sport' with Yale sponsorship

Solnit will explore the 'Bioethics of Children's Rights'

Economist William Nordhaus to discuss dilemmas raised by 'global public goods'

Yale Dramat to present Brecht masterpiece

Dance troupes to unite in benefit performance

Garten to discuss his new book, 'The Mind of the C.E.O.'