On a recent rainy night, more than 100 Berkeley Haas and Stanford GSB students convened in Chou Hall’s Spieker Forum for a first-of-its-kind Founder-Investor Mixer.
Haas MBA students Atusa Sadeghi and Alejandra (Ale) Vergara, along with Dogakan Toka, EWMBA 22 and co-president of the Berkeley Entrepreneurship Association (BEA), were behind the event. As co-presidents of the Haas Venture Capital Club, they decided it was time for students from the two programs to get to know each other in the tight-knit industry, where they’d inevitably run into each other post-graduation.
“I think collaboration is the key word here,” said Sadeghi, EWMBA 22, a former mechanical engineer who transitioned into venture capital over the last two years. “If we’re going to be in the same industry, let’s be united.”
A new fund
That shared vision for unity among investors and entrepreneurs is something Sadeghi and Vergara, full-time MBA 22, have emphasized since taking on their roles amid the Covid pandemic. Under their watch, they organized the event with Stanford, landing the support of sponsor First Republic Bank and Andrew Liou, a senior relationship manager at the bank, who “didn’t think twice before supporting the collaborative effort,” Vergara said.
Membership in the student-run VC club, founded in 2018 by evening & weekend MBA students Chris Truglia and Scott Graham, has increased from about 100 to more than 500 students, split 50-50 between the evening & weekend and full-time MBA programs. Since its founding, collaboration and networking among students from both the programs has been critical to the club’s success, Truglia said.
The club hosts popular pitch nights, often partnering with other UC Berkeley clubs, and has built a database with answers to the most common questions students ask about the venture capital industry. This past fall, venture capital club leadership also helped spearhead the creation of Courtyard Ventures, a new venture fund led by Haas MBA students that provides an opportunity for Cal students and alumni to invest in early-stage Cal startups. The fund has recently begun deploying capital, after exceeding funding goals and closing its first two investments in early January, Sadeghi said.
“These women are amazing—they’ve done an incredible job,” said Deepak Gupta, an investor and venture capital industry advisor with the Berkeley Haas Career Management Group.
While entrepreneurship is a well-established career path at Haas, Gupta said he’s seen a shift in student interest and effort in venture capital over the past three years, as the number of Bay Area VC funds has proliferated. “Now, these funds are coming to Haas to recruit for associate and principal roles,” said Gupta, who is also managing partner of his own pre-seed fund Blue Bear Ventures started at UC Berkeley. By next year, Gupta predicts Haas could double its number of full-time offers.
That growth would be significant. For each of the past two summers, about 15 to 20 full-time MBA students interned at venture capital firms, up from just a few in 2015, said William Rindfuss, executive director of strategic programs in the Haas Finance Group. While there’s a longer track record of students studying finance going into investment banking, a total of around 10 grads took full-time jobs in venture capital over the past two years. “We’ve had more students doing VC internships, and that will likely lead to more full-time VC job offers,” Rindfuss said.
The passion for investing
But increased hiring comes down to overcoming challenges endemic to the venture capital industry. VC funds can be insular, they don’t hire on a predictable schedule, and entry-level pay can be low compared to other finance jobs—with a big payoff delayed until you make partner, Gupta said.
“Venture is so ‘just in time’ and when people hire you you start immediately. It’s not like consulting where you get your offer and start next July,” said Jeff Diamond, MBA 22, a VC Club officer and a general partner at Courtyard Ventures. But Diamond, who came to Haas to switch from a career in the entertainment industry to early-stage investing, said he’s committed to a VC career. “It’s a lot of work but it’s rewarding,” he said. “It’s what I liked about working with artists, writers, and directors. You want to be the person who works with them. The idea of being with these companies for the long haul is what interests me.”
“The idea of being with these companies for the long haul is what interests me.” — Jeff Diamond, MBA 22
There’s clearly passion for investing in the Haas alumni network, which is expanding to include graduates like Sydney Thomas, MBA 16, a principal at seed-stage fund Precursor Ventures; Matthew Divack, MBA 19, an investor at Moment Ventures, and Champ Suthipongchai, MBA 15, who co-founded Creative Ventures, a tech VC firm investing in startups that address the impact of increasing labor shortages, rising healthcare costs, and the climate crisis.
Making alumni connections
An earlier success story in venture capital, Michael Berolzheimer, MBA 07, founded Bee Partners in 2008. An internship at pre-seed fund Bee Partners piqued Vergara’s interest last year, but she worried she lacked a technical background. Then Vergara met Kira Noodleman, MBA 17, a partner at Bee, through the Berkeley Female Founder and Funder’s summit last year. “Kira encouraged me to apply,” said Vergara, who landed the internship. That led to a full-time job offer with the fund when she graduates in May.
Looking for more investment experience, Sadeghi found her internship as a senior venture associate at Blue Bear Capital (separate from Gupta’s fund, Blue Bear Ventures). She first met Carolin Funk, a Blue Bear partner invited by the 2020 Haas Venture Capital Club to speak at the school. Interviews at Blue Bear led to an offer. She then learned that recent alum André Chabaneix, MBA 21, already worked at Blue Bear as a senior associate.
“André is just amazing,” Sadeghi said. “We have a lot in common in terms of our background and industry interest so we bonded pretty quickly. In our overlapping year at Haas we participated in the 2021 Venture Capital Investment Competition (VCIC) where we ended up representing Berkeley at the global finals together—and now we’re great friends and colleagues.”
While students continue their internship and career recruitment this spring, the VC Club already has many events planned, including club-sponsored workshops, student-alumni mixer events and more collaboration with peer MBA programs. Vergara and Sadhegi encouraged students “who are just interested in learning more about VC or are fully committed to this career path,” to check out the club.
“It’s been such a pleasure running the 2021 VC club year with Ale, and we can’t wait to welcome the 2022 leadership team to carry us forward,” Sadhegi said.