Seven second-year Harvard Business School students have created a groundbreaking fund designed to support their own graduating class’s entrepreneurs, marking a bold new step in student-led venture capital.
The initiative, called Twenty25 Ventures, has already secured $1 million in commitments. It will invest in businesses launched by members of the Class of 2025, adopting a “community-based investing” approach that replaces traditional vetting with automatic funding for qualifying ventures.
As long as a startup includes a 2025 graduate, has raised at least $500,000 externally, and has institutional backing, it will receive investment from the fund. Checks will range from $10,000 to $50,000.
“There’s no specific sector we’re focused on,” said co-founder Insoo Chang in an interview with The Harvard Crimson. “If a classmate meets the criteria, they get a check.”
The idea, inspired in part by similar efforts at Stanford, took shape last fall. With legal structure guidance from the Power in Numbers platform and insight from Stanford’s Class of 2020 fund founders, the team launched what is believed to be the first student-created fund of its kind at HBS.
The fund excludes nonprofits, academic projects, and search funds, focusing solely on for-profit startups. Beyond cash, founders gain access to an advisory board composed of successful venture capitalists and HBS alumni, offering mentorship, connections, and fundraising insights.
“This setup benefits both sides,” said co-founder Yuval Efrat. “Founders get advice, support, and introductions. Advisers get early exposure to emerging companies.”
Unlike typical VC firms, Twenty25 Ventures does not charge management fees or take carried interest. Any Class of 2025 member can contribute capital. The fund’s advisory board features top names in venture capital, including Bryan Kim of Andreessen Horowitz, Alex Kayyal of Lightspeed Venture Partners, and Sara Choi of Wing VC.
Chang emphasized the strength of the HBS network in making the fundraising process unusually efficient. “Normally, raising money is a major hurdle,” he said. “But because of our classmates’ support, it’s been surprisingly smooth.”
The founders envision a lasting legacy of student-led funding at HBS. They are already discussing the creation of a similar fund for the Class of 2026, hoping to cement community-backed investing as a tradition at the business school.
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