Yale School of Management Announces the "Chief" of MBA-Managed Venture Capital Funds: Sachem Ventures, LLC

New Haven, CT, February 7, 2001 -- Today, the Yale School of Management celebrated the launch of a new MBA-managed venture capital fund called Sachem Ventures, LLC, a $1.5 million venture capital investment fund that is unique to the business school arena. It is the only fund of its kind run by Yale MBA students who can invest in local startups. Ten percent of the school's student body helps manage the Fund.

Unlike other student-managed funds affiliated with U.S. business schools, Sachem can invest on its own, without the requirement that it must always invest alongside of another professional venture capital fund. Sachem plans to invest $75,000 to $125,000 in startup and early stage companies that are based in Greater New Haven. The Fund will consider any industry, except for real estate.

Today, Yale SOM Dean Jeffrey E. Garten hosted a celebration to announce the Fund, which included the school's students, faculty, staff, and alumni. There, David M. Cromwell, Adjunct Professor of Entrepreneurship at Yale SOM and President of Hillhouse Advisors, the nonstock company that manages Sachem Ventures said, "Our mission is to help create jobs and wealth in New Haven and to provide valuable learning opportunities for Yale MBA students. We can achieve these worthwhile goals while successfully serving the fund's investors." He added, "To the best of my knowledge, there is nothing quite like Sachem Ventures anywhere else in the country. It's aptly named 'Sachem,' which calls upon the Native American term for head chief, because it is the chief among chiefs in terms of venture funds of this sort."

In conjunction with its closing, Sachem also has announced its first investment. According to its new business manager Cebra Graves, a second-year student at the Yale School of Management, "We're open for business and are pleased to have made an initial investment of $100,000 in a promising local firm named "Higher One." Higher One is a venture-backed New Haven company that provides customized financial services to the higher education market.

David Cromwell teaches Venture Capital and Entrepreneurship at the Yale School of Management, both popular courses. He is the former CEO of J.P. Morgan Capital Corporation. Cebra Graves is one of more than 40 students at Yale SOM who is actively involved in helping to manage the daily operations of the Fund.

Sachem's investors include Zilkha Venture Partners, the New Haven Savings Bank, and Yale University. MBA students from Yale's business school help Sachem on due diligence for new investments. They give advice and technical support to Sachem's portfolio companies after Sachem makes an investment. Sachem Ventures is an independent venture capital fund and is not part of any academic program at Yale.

For an interview with Professor Cromwell or Cebra Graves, contact Media Relations, Yale School of Management, 203-432-6010 or som.extra@yale.edu. Press photo available upon request.