When Fortune reported that Dorm Room Fund, a student-powered investing group, had spun out from First Spherical Capital with $12.5 million in capital for its latest fund, it was almost an easy feel-good story. Right here was a enterprise capital car bent on offering expertise to the subsequent era of would-be VCs, now flush with extra {dollars} to additional its work — what was to not like?
There was a catch, it turned out. Per Fortune, individuals in this system should not paid and don’t obtain upside in offers that they execute. “In different phrases, if a [Dorm Room Fund] pupil spots the subsequent Fb, they gained’t be a cent richer for it,” the publication famous.
Dorm Room Fund CEO Molly Fowler, in the meantime, defended the agency in an e mail to TechCrunch.
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