Yahoo Finance What It Takes: The Inside Story Of A Winning VC Competition Team
Prashanth Somu (holding check) and the winning team of the 2024 VCIC. Courtesy photo
“I don’t have formal VC or finance experience, but winning this competition shows that I know what it takes to succeed in this industry.” — Prashanth Somu
A team of MBA students from Northwestern Kellogg School of Management secured the school’s second win in the past four years in April at UNC Kenan-Flagler Business School’s prestigious global Venture Capital Investment Competition, the top competition of its kind in the MBA sphere.
The winning team was comprised of Collin Bhojwani, Erica Buursma Klenz, Henry Richmond, Eunice Wangadi, Prashanth Somu, and Jason Epstein. Poets&Quants spoke with Somu about the team’s $10K prize — and the bigger prize of being able to call themselves champs.
The winning team. Courtesy photo
SUCCESS IS ‘THE REAL VALUE’
While the money is appreciated, Somu says, “Having success in a competition like this is the real value.”
Coming from a biomedical engineering background, Somu was looking to pursue an E&W MBA while balancing his remote job at Boston Scientific. “Ultimately I wanted to get my MBA to diversify my experience and have the opportunity to explore different departments and markets.”
Looking to to pivot into an area less technical than product development, Somu kicked off his new chapter at Kellogg in 2020. The added bonus was returning to Chicago where he grew up.
VC: A DIFFICULT INDUSTRY TO BREAK INTO
Kellogg E&W MBAs can take up to five years to earn their degree, yet they typically average about two and a half.
“Venture capital is a notoriously difficult industry to break into, especially if you don’t come from a finance background,” says Somu — and as it was, he did not. In his favor, he discovered his interest in venture capital and entrepreneurship early on and took as many courses as he could related to it. He says Kellogg’s 10-week internship-style lab courses were instrumental in bringing him up to speed.
“These were short consulting projects for a real firm, where I got experience and exposure to VC,” Somu says.
When he learned of the VCIC, he jumped at the chance to get involved. “It seemed like a really cool opportunity to get hands-on experience and pressure test what it feels like to be a venture capitalist,” shares Somu.
The Kellogg team at regionals, held at Dartmouth College. Courtesy photo
THE COMPETITION BREAKDOWN
Though he had already graduated, Somu was eligible to compete in the VCIC because Kellogg supports their students in doing so up to six months post graduation. The first competition was internal, and judged by three Kellogg professors: Pete McNerney, Mitchell Peterson, and Jeff Eschbach.
Quite uniquely, Somu’s team was the only all E&W student team of the 16 participating in the internal competition. Through quizzes and simulations, his team shined brightest and secured their place to move on to the regional competition.
“Once we found out we won the internal competition, we had two team members who couldn’t make it to the regional competition because of work commitments, so the professors identified star team members from the other teams who joined us,” explains Somu.
Their team moved on to regional competition held at Dartmouth Tuck, where they again secured the win and moved to the global finals.
‘FEELS LIKE WHAT YOU WOULD EXPERIENCE IN THE REAL WORLD’
The global competition was hosted by Kenan-Flagler, and it was split into two rounds. “Initially there were twelve teams,” says Somu. “Each team is given an imaginary fund to invest with, and they have to pick one of three companies to invest in.”
The VCIC upped the ante by inviting three real companies from completely different industries along with their CEOs to evaluate each team as they pitched live.
“One company specialized in health insurance, another focused on daycare technology, and the third catered to hunting and fishing trips,” Somu explains. Part of the challenge: They don’t know which companies are attending ahead of time.
“Each startup has their own unique challenges so there weren’t obvious decisions on which to invest in,” says Somu.
The winning team during a working session. Courtesy photo
UNPARALLELED SUPPORT FROM THE KELLOGG NETWORK
As part of the competition, each team has a mere twenty-four hours to do their due diligence. They called on connections in the real world to inform their decision on which of the three companies to hypothetically invest in.
What helped was the diversity among his teammates. “We came from a variety of backgrounds which allowed us to tap into a very diverse network for support. I think that really helped us differentiate ourselves from a lot of the teams we were competing against.”
In regionals, the competition layout was similar, and one of the companies they evaluated was in health insurance.
“No one on our team had a health insurance background but in those twenty-four hours of research, through the Kellogg network, we were able to secure a call the same day with the head of BlueCross Blue Shield,” says Somu. “It was really valuable that they were willing to drop everything and give us 30 minutes on a busy Friday of all days.”
Throughout the multiple stages of the VCIC competition, Somu’s team called upon at least forty companies collectively with short notice, and an impeccable thirty-five of them carved out time to speak with them. “That is a testament to the Kellogg network,” Somu adds.
A TWIST TO THIS YEAR’S COMPETITION
During the finals, each team pitched which company they wanted to invest in and why. Though it is a hypothetical competition, teams are given access to the company’s real data and even sign NDA’s. “Then, the judges have about 15 minutes to ask the teams questions to understand their thought process behind their investments,” says Somu.
Kenan-Flagler threw in a twist this year. They gave each team a ten minute one-on-one term sheet negotiation with the CEO of the company they picked to invest in, all in front of a live audience. “The teams weren’t made aware until the day of,” adds Somu.
Of the three companies, Somu’s team chose to invest in Upkid – a site that matches daycares and preschools with child care substitutes.
Somu believes that what set them apart from their competition was their idea to expand the company’s scope of care to other age groups. They also had the advantage of having a teammate with human capital background that came from EdTech.
THE STAMP OF APPROVAL
The process of making a deal in VC typically spans six to eight weeks on average in the real world, and Somu commends Kenan-Flagler for doing a fantastic job of converting the process to a format that feels like a realistic experience.
One of the biggest takeaways for Somun was the importance of maintaining and growing a strong network. “Founders often consult their investors for advice, and it’s important for VCs to be able to tap into their network,” he says.
“Even in the last month, winning this competition has unlocked a lot of great opportunities within my own network like having access to more VC’s – getting that stamp of approval,” shares Somu.
Being personable is a big part of success in this industry. “I think that really showed in the way we showed up to this competition,” says Somu.
“It’s a hard industry to break into, but there’s a lot of ways you can add value to the VC industry even if you aren’t working in it. If you are looking for opportunities, being personal and making yourself available to help out goes a long way.”
DON’T MISS MEET NORTHWESTERN KELLOGG’S MBA CLASS OF 2025
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