UNIVERSITY PARK, Pa. — The Penn State Smeal College of Business has launched the Propel Penn State Seed Fund, an initiative designed to provide undergraduate students with hands-on experience in venture capital while supporting real-world startups seeking early-stage investment.
The Propel Penn State Seed Fund expands access to undergraduate students interested in venture investing and is modeled after the paradigm of the Garber Venture Capital Fund, which was founded more than 25 years ago and continues to provide graduate students with real-world investing experience. To date, the Garber Fund has made more than 35 investments, deployed $3.5 million in capital and educated nearly 300 graduate students on venture investing and entrepreneurial finance topics.
“The Propel Penn State Seed Fund has a dual mission to expand experiential learning opportunities for undergraduate students related to venture investing and entrepreneurial finance topics and to invest in early-stage companies to promote economic development, innovation and sustainable educational programming for the future,” said Michael Zaydon, fund manager and administrator of the Propel Penn State Seed Fund and business development relationship advisor at the Farrell Center.
The seed fund is part of the Propel Business: New Venture & Innovation Program, a hallmark initiative of Smeal’s Farrell Center for Corporate Innovation and Entrepreneurship that provides experiential learning and engagement opportunities that bridge the classroom and the business world. The seed fund offers undergraduate students the chance to explore venture investing topics and apply their knowledge by evaluating, recommending and investing in promising startups.
The seed fund is supported entirely by philanthropic gifts from alumni and friends, and any returns generated by the Seed Fund will be reinvested into future educational programming and investment activities.
Beginning in fall 2025, the fund will introduce its educational program, the Venture Capital Investment Practicum, a multi-week experiential learning series. This immersive experience will allow undergraduate students to learn about venture investing and entrepreneurial finance topics while conducting due diligence on prospective investments. The VCIP will culminate in student teams pitching their investment recommendations to the seed fund’s investment committee, which includes Farrell Center staff, Smeal faculty and members of the Propel Business Advisory Network.
The college is also exploring the potential creation of entrepreneurial finance and venture funding courses at the undergraduate level to further support the seed fund’s activities. For now, the VCIP is delivered as a co-curricular workshop series designed for self-motivated students seeking real-world experience beyond the classroom during their time at Smeal.
“Developing an ecosystem of support, which includes sources of seed and venture funding, is important to us,” said Shawn Clark, director of the Farrell Center and Michael J. Farrell Endowed Professor of Entrepreneurship. “But it’s even more important that we are developing the hands-on learning opportunities that transform our students’ education.”
The seed fund also serves as a platform for alumni and corporate partners to engage with Smeal students through mentorship, industry expertise and professional networks. Members of the Propel Business Advisory Network have already contributed their time and knowledge to the strategic planning efforts of the seed fund and have volunteered to be guest speakers, student mentors and judges for final VCIP investment presentations this fall.
To ensure the long-term sustainability of both the experiential learning programs and investment activities of the fund, the Farrell Center has set an initial fundraising goal of $5 million to endow the fund’s programming. These resources will help secure the seed fund’s future and expand its impact across future generations of Penn State undergraduate students and portfolio companies.
“Philanthropic support from alumni and friends can help us amplify experiential learning opportunities for students, promote economic development and engage with individuals who are passionate about innovation, entrepreneurship and investing in early-stage companies,” Zaydon said.
The first philanthropic commitment to support the activities of the Seed Fund came from Smeal alumnus Patrick Flanagan and his wife Betsy in August 2024. While additional investments have helped move the Seed Fund closer to its fundraising goal, Zaydon underscored that the effort is ongoing.
Students, startups, alumni and supporters interested in learning more about how to get involved with the seed fund can visit propel.smeal.psu.edu/seed-fund or contact Michael Zaydon at propel@smeal.psu.edu.
To learn more about how to make a gift to support the educational mission of the seed fund, contact Sean Miller, senior director of development and alumni relations, at smm401@psu.edu.
Gifts to the Propel Penn State Seed Fund, including individual endowments that support the Seed Fund, advance the University’s historic land-grant mission to serve and lead. Through philanthropy, alumni and friends are helping students to join the Penn State family and prepare for lifelong success; driving research, outreach and economic development that grow our shared strength and readiness for the future; and increasing the University’s impact for families, patients and communities across the commonwealth and around the world. Learn more by visiting raise.psu.edu.