Dorm Room Fund Launches $10.4 Million Campus Fund

Dorm Room Fund Secures $10.4 Million in New Funding

Dorm Room Fund, a venture capital firm specializing in investments within student-led startups, has successfully raised a new fund totaling $10.4 million, according to filings with the Securities and Exchange Commission (SEC). This represents the largest fund secured by Dorm Room Fund to date.

Notably, this is the first fundraise for the firm that extends beyond its initial backer, First Round Capital, which established the student-focused venture in 2012. The SEC documentation indicates that the fundraising process is currently still in progress. Neither firm has offered a public statement regarding this development.

Origins and Investment Philosophy

The initial concept behind Dorm Room Fund stemmed from First Round Capital’s belief in the potential of students to effectively lead early-stage investment strategies. In 2012, First Round Capital dedicated a $3 million capital pool to be managed directly by a student cohort.

Currently, Dorm Room Fund maintains its commitment to investing exclusively in companies with at least one founder who is either a current student or a recent graduate. This core principle remains central to their investment criteria.

Investment Portfolio and Structure

To date, Dorm Room Fund has completed 326 investments in a diverse range of startups. These include well-known companies like Brooklinen and Snackpass, as well as the venture firm Harlem Capital Partners.

The firm typically provides $40,000 in the form of SAFE (Simple Agreement for Future Equity) notes to the startups they support. Dorm Room Fund operates with dedicated teams based in New York City, San Francisco, Boston, and Philadelphia.

Expanding Geographic Reach

While the firm’s primary investment focus remains within the United States, indications suggest a potential broadening of its geographic scope. Recent data from Crunchbase reveals that Dorm Room Fund’s latest investment was in Alima, a Mexico City-based company focused on streamlining product procurement for businesses, participating in a pre-seed funding round.

Strategic Implications of New Capital

The infusion of fresh capital is particularly significant for Dorm Room Fund, which has experienced a period of relative quiet in its investment activity over the past several years. This funding is expected to invigorate its student-focused initiatives.

In an increasingly competitive investment landscape, investors are actively seeking opportunities to identify and engage with promising talent at earlier stages. This is being achieved through various means, including internal accelerator programs, non-dilutive support initiatives, and specialized microfunds like Dorm Room Fund, designed for aspiring entrepreneurs.

Industry Trends and Comparable Ventures

The Dorm Room Fund’s strategy aligns with a broader trend within the venture capital industry. General Catalyst, for example, launched Rough Draft Ventures with a similar goal of gaining enhanced access to student networks.

Contrary Capital, another venture capital firm concentrating on student entrepreneurs, recently announced a $20 million fund – its second to date. Furthermore, in 2019, First Round Capital demonstrated its continued support for early talent by backing the Graduate Fund, a pre-seed fund targeting recent graduates of undergraduate and master’s programs, operating as an independent entity.

Recent Developments and Leadership Changes

Dorm Room Fund has been actively preparing for a period of revitalization. In 2018, the team developed a CRM designed to assist founders in securing seed funding.

A year later, Rei Wang, the firm’s CEO, departed to establish The Grand, a learning and development platform. Molly Fowler, with a background in politics and urban planning, was subsequently appointed as the new chief executive.

Chauncey Hamilton joined the team as the inaugural COO, having previously served as chief of staff to First Round partner Rob Hayes, who later transitioned to XYZ Venture Capital. Despite these leadership changes, Dorm Room Fund has successfully demonstrated to its limited partners (LPs) the enduring value of its long-standing investment focus, securing this new round of capital.