World Business

Venture capital steadfast Highland Capital Partners gives student entrepreneurs a business boost with access to its expertise and contacts

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From left, Alex Bain, founder and president, and Craig Lund, founder and CEO, FanZanimal; Dan Peer, founder, Ann DeWitt, director of business development, and Motomu Shimaoka, founder, Leuko Bioscience; and Will O’Brien, founder and CEO, Project Einstein. Shawn G. Henry

by Spencer E. Ante

In the spring of 2007, Michael Sullivan was trying to outline revealed how to append some mojo to his startup, Affine Systems. As a graduate student in applied mathematics at Harvard University, Sullivan had co-founded the company in the fall of 2006 with classmate Bobby Impollonia. Working out of their homes, the two computer whizzes had whipped up a software program to let media companies know if their copyrighted videos show up on the Internet. But like many engineers, they didn’t be aware of much from one place to not the same business, and they hadn’t yet put cheek by jowl a function plan.

Then they heard about an unusual summer program that had just been started by Highland Capital Partners, a venture capital firm through offices in Boston and Silicon Valley. The program was designed as a denomination of summer camp for entrepreneurs. Open to undergraduate and graduate students, it offered aspiring entrepreneurs a $7,500 stipend, free office space, and access to Highland’s rod and external part contacts. Sullivan applied and got in. Last May, he and Impollonia started the 10-week program.

They ended up with a lot more than a récollecté booster. Highland’s partners helped Affine calling a craft plan, land their first test customers, and hire two older executives. Ultimately, last hibernate, Highland put venture money into Affine, one of two companies in the program to get funding. "They bestow you full access to their entire network," says the 27-year-old Sullivan. "I don’t consider there’s anything else like it."

Venture capital firms have all along had traditional internship programs, like those at law firms and investment banks. College kids consume the summer tagging along to meetings and listening to presentations. But VCs have never been comfortable giving students real responsibility for making investments.

Highland’s summer camp, that started its helper year through the advent of 10 new students this month, is a adapted to practice compromise. VCs focus on their walk of life and maintain control over investment decisions, yet they get an injection of new ideas from bright youngsters—by no strings attached. Highland’s program isn’t exceptional. A maniple of other venture firms run similar summer camps, including Lightspeed Venture Partners, which is offering 19 students office space, mentoring, and up to $15,000 in grant money to help them jump-start their trade. "We are trying to connect with high-potential people," says Michael Gaiss, a senior vice-president at Highland who runs its program.

For this summer’s camp, the fast received 140 applications from students at Stanford, Harvard, Northwestern, and other top schools in advance of choosing four teams. In return for its efforts, Highland asks one thing: If the startup raises venture capital within 180 days from the end of the program, the firm gets an option to co-invest up to 50% of the total financing. Highland didn’t launch the essay thinking it was going to fund a lot of companies, but last year it ended up financing two of the eight teams, including Affine.

For the budding entrepreneurs, the proposition is clear: Besides the free space and a modest stipend that covers the rent, Highland’s participants get to moil side by lateral with professional business builders. Highland’s full-time staff is a stairwell away on the help floor, while the teams occupy a first-floor space with the feel of a grad school dorm room. To calamity facing vapor, in that place’s a putting green in unit office and a basketball hoop-petticoat in another. Every so often, the teams will kick back on a patio, drink some beers, and fire up the barbecue.