UND student-managed group attends private equity summit

UND's Dakota Venture Group spent three days in Salt Lake City to attend a private equity summit.

Lee Groeschl President of the group and M.B.A student attended the conference, along with four others.

"We went down there to learn the best strategy on how to run our student-run venture capital fund," Groeschl said. "It gave our group an overall comprehensive look at the different markets within venture capital and how companies are valued differently, and how venture capitalism effects those different values."

Groeschl found the summit to be helpful as well.

"Success stories of entrepreneurs and venture capitalism were told that were informational," he said. "And, they showed how different markets in the venture capital industry are changing."

The group began last fall with $200,000 in evergreen funding from Bart and Lynn Holaday, which means all of the group's capital gains and losses are relinquished back into the fund. According to advisor Bruce Gjovig the experience is the most valuable asset of the group.

"The hands on experience learning is rarely something that 21 and 22 year olds get to do," Gjovig said. "The members have to go out, source deals, figure out companies' worth, negotiate with the company, follow up on investments and harvest investments."

According to Gjovig, UND's group is different than others in the nation.

"We found out that the UND fund can do far more than any other student venture capital group," Gjovig said. "They are truly student managed, they only need to report to us for accountability. We are truly the first in the nation to do that."

Students are in charge of growing the fund, in order to learn more about venture capitalism.

"This is a recycled investment that gives students the opportunity to see deals and learn about post investment relationships with entrepreneurs," Groeschl said.

Groeschl sees this group as akin to beginning one's own company.

"This is basically like our own venture capitalist firm, and a lot of work has gone into it thus far," he said.

The next step for the group is to grow the fund, and according to Groeschl they are working with an entrepreneur at the moment, but they are not allowed to release any information.

"The entrepreneur we are working with is waiting to announce ties until his business establishment is ready for business, and that will be in the next couple of months," Groeschl said.

Groeschl described the group working as mostly student involved.

"We are going to get undergrad and graduate students involved in running the fund, but hierarchy will be involved within the fund," he said.

Groeschl also explained that even alums of the university and group can still be as involved as much as they want.

The group will also be opening up involvement to more students that wish to apply, as well as investors and sponsors that would like to fund the group.

"We want to get more money and people involved," Groeschl said. "Anyone interested in investing in Dakota Venture can do it through sponsorships or capital donations to the fund."

For more information on joining the Dakota Venture Group, Lee Groeschl can be reached at (701) 777-6511 or e-mailed at lee@innovators.net.