Frequently Asked Questions

While an important part of our mission is to support innovation and entrepreneurship throughout the UMass Amherst community, our Fund and its general partner are independent legal entities that are not controlled by or a part of UMass Amherst or the UMass university system. The services provided to the Fund by the central administration of UMass Amherst are on arm’s length terms.

The typical venture fund pays 20% of any investment appreciation to its fund managers as incentive compensation. This is known as their “carried interest.”  Since our Fund does not compensate its managers, we are able to donate that amount to UMass Amherst while still providing our investors with a traditional distribution structure.

Our portfolio companies are typically founded or led by UMass Amherst faculty, students or alumni. On the other hand, the fact that an alum is a member of a large management team is probably not enough. Ultimately, the sufficiency of the UMass Amherst link is determined by our investment committee.

We recognize that early stage companies almost always evolve and we only require the UMass Amherst connection to be in place at the time of investment.

Yes. UMass Amherst students are an important part of the entrepreneurial ecosystem on campus. They participate in hackathons, take entrepreneurship courses, participate in pitch competitions and often start companies. Some show an interest in learning the venture business. We have created the Maroon Venture Partners Student Advisory Board to enable UMass Amherst students to participate in the Fund's activities.

Although this largely depends on how much additional funding we raise, we anticipate making two to three new investments each year.

Our only express requirement is a material UMass Amherst connection. We are otherwise open to investment opportunities that have promise to generate favorable returns for our investors and shed a positive light on the university’s entrepreneurial ecosystem.

No. Investors in the Fund will have an interest in each deal selected by our investment committee.

We have flexibility in structuring our investments. We look for equity interests that represent a fair valuation for the risk involved.

Absolutely. We are very open to investing in syndicates with other investors.

Our Fund is a limited partnership organized under Massachusetts law. Its general partner is a limited liability company that is also organized under Massachusetts law. Our general partner has a board of managers that oversees all of the Fund’s operations and also serves as the Fund’s investment committee. See Our Management Team for a list of the individuals currently serving as our board/investment committee. The board was nominated by the Chancellor of UMass Amherst but, in order to maintain independence, a majority of the board was appointed by the holders of a majority of Fund’s limited partnership interests not owned by UMass Amherst.

Our Fund does not pay a management fee. It does, however, incur modest operating costs and pays a market fee to UMass Amherst for administrative services and back office support. Our management team volunteers their services and does not receive a “carried interest” or any other compensation from the Fund.

Sorry. You will need to raise that with your own professional advisors.

We love all input, suggestions and referrals. And we encourage any support you can provide for innovation and entrepreneurship at UMass Amherst.