Todd,
First, let me let you know how "lucky" your students are. One of the
greatest problems for many student-based ventures is to raise the money
needed for launch, which is a problem that you have apparently solved
in a unique way.
Having said this, you need to make sure that all such proposed deals are
reached through "arms-length" negotiations.
Regarding regulations: These vary among schools, so you need to check
what yours are with your school's legal counsel.
Regarding liability and legal structure: Their ventures MUST be LLCs or
C-corporations so that they have no liability if they do not successfully
launch them. Do not let them launch as Partnerships or Sole Proprietorship's
or even S-corporations.
Regarding conflicts of interest: Make sure that the students get independent
outside advice. You might be able to use the resources of your SBDC if you
have one. If not, check with a nearby SBA Office to see if they have a lsit
of small business owners who might give your students independent counsel.
Regarding valuation: This is the toughest one because it depends on the nature
of the venture, the progress it has made, the IP it may own, etc. etc. Still,
there should be some resources that you can call on in Spokane for assistance.
Feel free to call me if you have other questions.
Sincerely,
Chuck Hofer
770-757-3575 Cell 1
770-455-4280 Cell 2
----- Original Message -----
From: "Todd Finkle" <
0000000fb1372094-dmarc-request@AOMLISTS.PACE.EDU>
To:
ENTREP@AOMLISTS.PACE.EDU
Sent: Wednesday, September 24, 2014 2:26:07 PM
Subject: [ENTREP] Assistance with Investing In Student Ventures
Dear Colleagues,
I hope your semester is off to a great start! I need your assistance. I hired a
successful technology entrepreneur who also runs an Angel Fund to teach our new
Technology Entrepreneurship class. He wants to invest in some of the student
ventures in the class. I am not aware of our policies here. I was wondering if
anyone has any experience on this and how it has worked at your school in regards
to regulations, liability, legal structure, valuation, conflict of interest, etc.
Any advice on this would be appreciative. Thanks in advance,
Todd
Todd A. Finkle, Ph.D.
Pigott Professor of Entrepreneurship
Gonzaga University
School of Business Administration
502 East Boone Avenue, AD Box 9
Spokane, Washington 99258
509-313-7048
finklet2000@yahoo.com
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Ventures HO!
**************************************
This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.
Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.
You can manage your subscription options, including joining or leaving the list here:
http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1
If you have questions or need help, please contact Dr. John Bunch
jbunch@benedictine.edu.
Ventures HO!