Q: My organization is thinking of financially supporting some Entrepreneurship Development Centers in universities. The model (a very ambitious one) is ready and some seed funding is also available. We are thinking of providing funding to a private enterprise (a VC fund in a perfect world), which would setup the Center in universities and run it by generating its own operational funds through different means.

Has anybody heard of this kind of model or knows of investors/social entrepreneurs, who have done it or would be interested in doing it, especially in Pakistan?


Patrick O'Heffernan responds:

Many US universities have a similar model.  Often the university not only provides funds, but also provides office space, accounting, legal and other support services. This model works very well in engineering schools where the products of the entrepreneurs are patents and patented products and services that can be licensed, with a percentage of the license fee going to the university. The center is usually started with a grant or an investment from a VC or a number of VC's who see the Development Center as a way to get a first look at developing technologies to invest in - often a valuable asset.

These development centers are managed by the university but have a board made up of VC's who review proposals and recommend those that should be granted access to the Center.  These VCs also invest and often put up the first funds for the Center.

I don't know of any similar centers in Pakistan, but I would check with LUMS in Lahore (Lahore University of Management Sciences); PASTIC; WBiC - the Women's Incubation Center, also in Lahore; and SMEDA, the Small and Medium Enterprise Development Authority of Pakistan.