Wolverine's criteria are fairly open-ended. It seeks local companies with a high potential for growth, but doesn't require that a company's product be fully developed. It also prefers that at least one member of the company be affiliated in some way with the university. Bayoff, for example, was an alumnus. A third deal with a New York-based Internet company is imminent, says Bantel.
Clients say they've been impressed with the neophyte VCs.
Students went through our product and asked 1,001 questions surrounding market potential, the viability of the Internet, and our competitors. It has been a revelation for the students. My experience in the fund has demonstrated to me just how important people are to the business. You can't learn that without playing a role in the formation of a company. It remains to be seen whether the Wolverine fund will turn out many VCs or improve its graduates' skills at getting venture money after graduation.