Report says Dorm Room Fund raised a new $50 million venture fund

In short: Dorm Room Fund, which lets college students help pick startup investments, has reportedly raised a new $50 million fund.

What happened

Dorm Room Fund (DRF) has secured a new $50 million pool of money to invest in startups, according to reporting by The New York Times. DRF focuses on companies started by college students, and it also plans to support founders from its alumni network.

This new fund is reported to be four times larger than DRF’s previous fund. In 2022, DRF announced a $12.5 million fund backed by outside investors, including First Round Capital and others.

DRF has a distinctive setup. Students on campus teams find potential startups, review them, and help decide whether DRF should invest. You can think of it like a student-run scouting team that looks for promising founders early, through classes, dorms, and campus connections, with guidance from more experienced investors.

Some key details were not included in the available reporting. The report confirms the $50 million figure, but it does not say when the fund officially closed, who all the backers are, how long DRF plans to keep investing from it, or whether DRF will change how much money it typically puts into each startup.

Why it matters

More money could let DRF invest in more student-founded companies, or provide more support over time, as competition increases to find and fund young founders. For student entrepreneurs, this can mean another potential early source of funding. For student investors, it can also mean more chances to learn how investing works in a real setting.

Source: NYTimes