Source: Fortune
Summary
Silicon Valley private schools are creating their own venture capital funds, investing in pre-IPO companies with the help of parent-investors from well-known firms. The funds are capitalized with donations and are aimed at early-stage companies. The approach was originated by Saint Francis High School, which invested $15,000 in Snap and saw a return of $34 million when the company went public. Other schools, such as Crystal Springs Uplands School and Menlo School, have followed suit. The funds are overseen by volunteer investors and are used to support the schools’ needs, including tuition assistance and teacher compensation.
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The numbers tell one story.
Saint Francis High School’s $15,000 investment in Snap returned $34 million. Crystal Springs Uplands School has invested $1.75 million in private equity investments. Menlo School has a venture capital endowment comprising 36 individual investments. The schools’ venture funds are guided by parent-investors from firms like Lightspeed, Sequoia, and Battery Ventures. The funds are used to support the schools’ needs, including tuition assistance and teacher compensation. The strategy enters a familiar phase: patience pays off.
Author: Evan Null
