A Night of Innovation: Harvard Business School’s New Venture Competition
Usually a buttoned-down venue for hosting investment conferences or talks by star executives, Harvard Business School’s hall transformed into a vibrant arena of excitement and support one recent evening. Hundreds of friends and family of student founders filled the space, armed with pom-poms and handwritten signs, reminiscent of the spirited atmosphere typical of a Beanpot hockey final. The air buzzed with anticipation as the annual New Venture Competition unfolded, showcasing the entrepreneurial spirit thriving within the school.
The Competition Landscape
From an initial pool of 123 student-led startups, eight finalists took the stage to pitch their innovative ideas. They were vying for a share of over $200,000 in seed capital, awarded by a panel of judges that included venture capital investors and seasoned entrepreneurs. This competition is not just about funding; it’s a celebration of creativity, hard work, and the relentless pursuit of entrepreneurial dreams.
“It’s the one time of the year where the students get to really celebrate their peers,” said Thara Pillai, director of the Rock Center for Entrepreneurship, which sponsors the competition. “They’re working so hard throughout the year; it’s a great way to bring the community together.”
A Growing Trend in Entrepreneurship
The New Venture Competition has been a staple at HBS for nearly 30 years, coinciding with a notable increase in student interest in entrepreneurship. Recent statistics reveal that 17% of graduates founded a startup last year, marking the highest rate since the late 1990s. This surge is reminiscent of previous booms during the dot-com era and the post-Great Recession recovery, but the current wave appears to be driven by advancements in technology, particularly artificial intelligence.
HBS professor Josh Lerner notes that the rise of AI has prompted students to reconsider traditional career paths. “When you think about what analysts or even principals at many of these firms do, a lot of it is putting together slide decks, running numbers through spreadsheets, and so forth,” he explained. “You might regard that as pretty vulnerable to being automated with some of the tools coming down the pike.”
Diverse Backgrounds of Founders
Many of the founders participating in the competition have specialized in fields such as medicine, e-commerce, or engineering before entering business school. They are taking a different route than famous Harvard dropouts like Mark Zuckerberg and Bill Gates, choosing to enhance their business acumen while building networks that could support their entrepreneurial ventures.
Take Goutam Gadiraju, for instance. At 25, he was in medical school at Harvard when he identified complications patients face during recovery from surgery. Partnering with a professor, he developed a flexible alternative to surgical drains, launching a business called Serosafe Surgical. To gain business knowledge, he enrolled in Harvard’s joint-degree program for an MD and an MBA.
Celebrating Innovation and Impact
At the recent competition, Serosafe Surgical clinched first place among for-profit startups, while Revolv, a startup focused on converting organic waste into affordable animal feed and fertilizer in developing countries, won the social enterprise category. Both startups were awarded $75,000, a significant boost for their missions.
The competition has evolved over the years, shifting its focus from pure competition to mentorship and guidance. All entrants in the first round received valuable feedback from external experts, with each team benefiting from at least 20 actionable insights. This emphasis on constructive criticism is designed to foster growth and improvement, rather than merely rewarding the best pitch.
Jennifer Arnold, co-founder of Lyv Health, a startup focused on medical lab testing and prescriptions, shared her experience. “I put all of the feedback into a huge Google Doc and tried to address it with my partner,” she said. Although they won $25,000 as a runner-up, she emphasized that the feedback was “the most valuable thing.”
The Broader Context of Entrepreneurship
The upswing in entrepreneurship at HBS reflects a broader trend in the U.S. economy, where new business formation is at record levels. According to the Census Bureau, more than half a million new businesses registered with the IRS in three out of the past seven months, a feat only previously achieved during the pandemic peak in May 2021.
Interestingly, while much of the venture capital funding in recent years has flowed to AI-related startups, many finalists at Harvard’s event were not directly tied to this technology. In addition to Serosafe, runner-up Lyv Health is innovating in medical testing, and Sensea, voted the audience favorite, is developing an underwater guidance system.
A Legacy of Support and Growth
Harvard has been running the New Venture Competition since 1997, adapting it over time to focus more on mentorship rather than competition. This shift has allowed students to gain insights that can significantly impact their entrepreneurial journeys.
As the Boston tech scene continues to evolve, local companies and investors are actively encouraging graduates to establish their startups in the area. However, some founders, like Arnold, are considering relocating to hubs like San Francisco or New York due to the concentration of capital and talent.
The energy and enthusiasm displayed during the New Venture Competition exemplify the innovative spirit at Harvard Business School. As students continue to push boundaries and explore new ideas, the future of entrepreneurship looks bright, promising a wave of impactful ventures that could reshape industries and communities alike.
