The Garber Venture Capital Center
This page introduces the Garber Venture Capital Center and the uses of the venture capical fund in the Smeal MBA Program.
The Garber Venture Capital Center
Providing MBA students with real-world experiences is at the heart of the Farrell Center, which also oversees the Garber Venture Capital Fund. The fund, established in 1999 thanks to a $5 million commitment from Penn State Alumnus Dr. John Garber, and his wife Bette, brings reality to the teaching of entrepreneurism and venture capital by enabling MBA students to become actively involved in the process of equity investment and new ventures. Students examine current investment opportunities and decide whether to invest from the fund in a particular transaction. Interaction with external private-equity groups provides an opportunity for students to experience the complexities and pressures of the volatile private equity sector.
The students who manage the Garber Venture Capital Fund completed a purchase of preferred stock in Alphasource Procurement Systems LLP . The Pittsburgh-based company has a novel business model to provide electronically enabled procurement for "middle-market" purchases. The students undertake due diligence on all aspects of the company including market competition, customer interviews, financial modeling, intellectual property, and valuation. The students will be actively involved in the governance of the new subsidiary, which will expose them to a number of complex issues associated with venture financing, such as corporate structures, board and membership governance rules, warrants, and convertible debentures. Part of the investment is into a subsidiary based in Innovation Park on the Penn State Campus in State College. This company will have students serving on the board, undertaking market research and creating bid-packages-all part of their Smeal MBA experience.
