What I Did at VC Camp

In the spring of 2007, Michael Sullivan was trying to figure out how to add some mojo to his startup, Affine Systems. As a graduate student in applied mathematics at Harvard University, Sullivan had co-founded the company in the fall of 2006 with classmate Bobby Impollonia. Working out of their homes, the two computer whizzes had whipped up a software program to let media companies know if their copyrighted videos show up on the Internet. But like many engineers, they didn't know much about business, and they hadn't yet put together a business plan.

Then they heard about an unusual summer program that had just been started by Highland Capital Partners, a venture capital firm with offices in Boston and Silicon Valley. The program was designed as a sort of summer camp for entrepreneurs. Open to undergraduate and graduate students, it offered aspiring entrepreneurs a $7,500 stipend, free office space, and access to Highland's staff and outside contacts. Sullivan applied and got in. Last May, he and Impollonia started the 10-week program.

They ended up with a lot more than a rsum booster. Highland's partners helped Affine craft a business plan, land their first test customers, and hire two senior executives. Ultimately, last winter, Highland put venture money into Affine, one of two companies in the program to get funding. "They give you full access to their entire network," says the 27-year-old Sullivan. "I don't think there's anything else like it."

Participants with Potential

Venture capital firms have long had traditional internship programs, like those at law firms and investment banks. College kids spend the summer tagging along to meetings and listening to presentations. But VCs have never been comfortable giving students real responsibility for making investments.

Highland's summer camp, which started its second year with the arrival of 10 new students this month, is a practical compromise. VCs focus on their business and maintain control over investment decisions, but they get an injection of new ideas from bright youngsters—with no strings attached. Highland's program isn't unique. A handful of other venture firms run similar summer camps, including Lightspeed Venture Partners, which is offering 19 students office space, mentoring, and up to $15,000 in grant money to help them jump-start their business. "We are trying to connect with high-potential people," says Michael Gaiss, a senior vice-president at Highland who runs its program.

For this summer's camp, the firm received 140 applications from students at Stanford, Harvard, Northwestern, and other top schools before choosing four teams. In return for its efforts, Highland asks one thing: If the startup raises venture capital within 180 days from the end of the program, the firm gets an option to co-invest up to 50% of the total financing. Highland didn't launch the effort thinking it was going to fund a lot of companies, but last year it ended up financing two of the eight teams, including Affine.

For the budding entrepreneurs, the proposition is clear: Besides the free space and a modest stipend that covers the rent, Highland's participants get to work side by side with professional business builders. Highland's full-time staff is a stairwell away on the second floor, while the teams occupy a first-floor space with the feel of a grad school dorm room. To blow off steam, there's a putting green in one office and a basketball hoop in another. Every so often, the teams will kick back on a patio, drink some beers, and fire up the barbecue.

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