U-M's Wolverine Venture Fund makes $2M from HandyLab sale

Wednesday, December 2, 2009 | Source: Concentrate

There was a little bit of skepticism when the University of Michigan's Ross School of Business started its own student-run venture capital fund in 1997. That's gone today now that the fund has notched a number of investment hits, including a home run with the recent sale of HandyLab.

The Wolverine Fund has recorded profits as big as the low seven-figures in the past. But the HandyLab sale proved to be the biggest winner so far. It brought in $2 million for the student-run fund, off a $350,000 investment.

"This is unmatched among other student funds," says Mary Nickson, program manager for the Zell Lurie Institute of Entrepreneurial Studies at the University of Michigan. "We haven't heard of these sorts of returns from similar student funds at our peer schools."

The Wolverine Fund invested its share over six rounds between 2000 and 2005 thanks to the efforts of more than 200 business school students. Becton, Dickinson and Company acquired HandyLab earlier this fall for a reported $300 million.

The fund is worth $3.5 million and has invested in more than 18 companies in industries like information technology, life sciences and alternative energy. These firms typically have some sort of U-M connection.

Source: Mary Nickson, program manager for the Zell Lurie Institute of Entrepreneurial Studies at the University of Michigan
Writer: Jon Zemke