The Rady Venture Fund is as unique at the Rady School itself. The fund provides both investment capital to entrepreneurs but also education opportunities and hands-on learning experience for Rady MBAs and other UCSD graduate students. The fund is associated with the Venture Capital Management courses MGT496A and MGT496B. Students gain exposure to the investment process through courses in venture finance, investment analysis and venture capital fund management. Students screen investment leads, perform due diligence, make investment recommendations, and monitor portfolio companies.
The Rady Venture Fund is funded solely from individual donations to the business school through the UC San Diego Foundation. The fund is evergreen and any investment returns are reinvested in the fund.
The Fund makes 1 -2 investments per year of up to $150K in equity or convertible debt. The investment focus is technology-based seed to early stage companies in life sciences and high tech industries preferably located in the San Diego region. All investments require an approval from the investment committee and syndication with at least one other direct investor.
The Investment Process
- Company pitches to the Venture Capital Management class
- Students perform due diligence and make investment recommendation
- Co-investor is identified by the company
- Students present their recommendation to the investment committee
- Investment committee approves/declines the investment
- Rady Venture Fund represented by the UCSD Foundation makes the investment
- The company becomes a Rady Venture Fund portfolio company