Pioneer Ventures (PV) is a proposed venture capital fund owned and managed by the Christos Cotsakos College of Business (CCOB) at William Paterson University. The fund will have three main purposes:

1. Expand the entrepreneurial scope of the CCOB, and foster entrepreneurship throughout the greater William Paterson community.
2. Contribute to, and build upon, the CCOB’s reputation for innovation and excellence.
3. Provide a practical learning opportunity for current and potential students.

The history of university-operated venture funds can be traced back to the mid-nineties with the launch of Wolverine Venture Fund by the Ross School of Business at the University of Michigan.  The fund would later give impetus to the Zell/Lurie Institute for Entrepreneurship, which tied together the University’s entrepreneurial endeavors. In the time since the launch of the Michigan fund, a handful of other universities have followed suit. In addition to Michigan, the leaders that followed were Cornell’s “Big Red Ventures,” and the University of Utah’s “University Ventures.”  Several other universities, including Yale, have spun out venture funds (Sachem Ventures) from their business/management schools or have other direct involvement with VC's.

In addition to the universities that have launched venture funds, there are others that enjoy a leadership position in highlighting entrepreneurship: For example, Boston University, University of Chicago, Northwestern University, University of Michigan, Yale University, University of Maryland, Cornell University, and Harvard University.

Deal flow characterizes the process in which Pioneer Ventures will receive business plans and manage investment opportunities. Successful deal flow will likely be the single most important operational activity of the fund. Ensuring that both the quality and quantity of the deals is sufficient to keep the fund 80-90% invested within its investment criteria will be a primary goal.

The Fund will seek out partners to assist in identifying investment opportunities, as well as creating processes for deals to flow directly to the fund. The types of deals we seek out will be guided by our investment focus. Things that may ultimately determine the focus include:

1. Stage of Development
2. Location of the Company
3. Industry
4. Required Investment

The evaluation and analysis of potential investment opportunities will be a core function of the Fund. It is envisioned that students will bear the primary responsibility for this analysis, using the analytical skills and tools they have gained during their studies.

Working with a set of standards and criteria adopted by the Board, students will analyze and test each investment opportunity against this standard. Ultimately, a report will be compiled on each possible investment which will be used by the management committee to make the final investment decision.

This comprehensive report may include evaluations of: industry/market, production, distribution, marketing, management team, financial plan, technology, IP, exit strategy, etc. Each of these different areas will be evaluated for clarity, completeness, and viability.

After the analysis is completed on a potential deal, and it is recommended for investment, the deal would then go to the Management committee for preliminary approval. Once preliminary approval is granted, due diligence is conducted. If due diligence is completed and the deal is still viable, the deal would go back to the Management Committee for final investment approval. Once approval is granted, a term sheet would be presented to the company seeking funds. Once the terms of the deal are agreed upon, the transaction would be consummated.

1. Business Plan Received, Analyzed, and Recommended for Investment
2. Management Committee Review and Initial Recommendation
3. Due Diligence
4. Final Approval
5. Term Sheet offered and negotiated
6. Agreement and Investment
7. Post Investment Follow Up

TBA