A landmark $5-million institutional venture fund launched at Western University will invest directly in early stage companies founded by entrepreneurs in the campus community.
In a first for the university, the Western Propel Fund will offer up to six investments of $150,000 per year for five years to startup businesses with at least one founder who is a Western student, faculty or staff member or graduate.
“The fund signals to the entrepreneurial community, here at Western and beyond, that we are serious about our entrepreneurs’ success,” said Eric Morse, executive director of Western’s Morrissette Institute for Entrepreneurship, powered by Ivey.
Western and Ivey Business School are each committing $2 million to the Propel Fund, while Morrissette Entrepreneurship will contribute another $1 million. Together, their investments will power the fund through 2030.
The Propel Fund is designed to fill a specific gap – companies far enough along to show promise but too small to attract institutional venture capital. To be eligible, companies must have raised less than $1 million in total capital.
“We see the Propel Fund as a way to help Western-founded ventures bridge that investment gap,” Morse said. “The fund is just one part of Morrissette’s ongoing support for founders through every stage of their business journey.”
Zachary Kanemy, a fourth-year student in management and organizational studies who’s volunteering on the due diligence team, says it provides meaningful exposure to venture capital in a real-world setting, while allowing students to contribute fresh perspectives during the review.
“A large part of the process is stress-testing assumptions, evaluating markets, determining a company’s potential to scale up and understanding founder dynamics,” he said.
Volunteers did that due diligence on the first round of applicants this summer – seven startups that pitched their businesses at Demo Day on June 3.
“What stands out is how much emphasis is placed on the team itself, especially at the seed stage where products and financial models can still evolve significantly,” Kanemy said.
Recipients will be supported through Morrissette’s full suite of programming, including mentorship, makerspaces, workshops and alumni connections. Morse said the university ecosystem gives the fund an edge a standalone investor couldn’t easily replicate.
“We are able to put additional resources into the ventures that come through our programming, including access to industry and startup expertise from our large network of alumni mentors and experts,” he said.
Eric Morse, executive director of Morrissette Institute for Entrepreneurship, says the new Western Propel Fund demonstrates the university’s commitment to helping founders grow and succeed. (Brandon MacIntosh/Ivey Communications)
Western Propel Fund includes student experiential learning
Founders can apply to the Propel Fund through Morrissette’s twice-yearly Angels’ Demo Day. Each cycle, six to eight companies make their pitch before a live audience of investors, mentors and alumni. After pitching, each company will be assigned to a team of student volunteers who will conduct formal due diligence under guidance from the Propel leadership team and external subject-matter experts. Their findings will be reviewed by an investment committee, which will make the final decision about which companies to fund. Up to three founders from each Demo Day will receive funding, giving Western equity in each company. Propel leadership will track the companies’ milestones, revenue and jobs created through quarterly check-ins. The program also trains student volunteers in the skills needed to conduct due diligence. While many are business students, other volunteers come from faculties across campus.Zachary Kanemy
