Full Breakdown
Silicon Valley Private Schools Turn to Venture Capital Funds for Fundraising
8/13/2026, 1:36:28 AM
Origins and Growth of School-Based VC Funds
Traditional private-school fundraisers—silent auctions, annual giving drives and galas—are now being supplemented by venture-capital-style investment vehicles. The model began at Saint Francis High School in Mountain View, where a $15,000 pre-IPO investment in Snap generated roughly $34 million when the company listed in 2017. Inspired by that result, a handful of Bay Area schools have launched similar funds, capitalized by donations from parents and alumni who work at firms such as Lightspeed, Sequoia, Battery Ventures, Mayfield Fund and Meritech Capital Partners.
How the Mini Funds Operate
A school creates a small pool of capital that comes exclusively from donor contributions—not from tuition revenue or the operating endowment. A volunteer investment committee, typically composed of parents and alumni employed at venture-capital firms, vets deals and each member is asked to bring at least one investment opportunity per year. The funds then allocate $25,000-$50,000 to roughly ten early-stage or pre-IPO companies annually.
Key structural features set these school funds apart from commercial venture funds:
- No management fees or carried interest. Volunteers donate their time and do not receive a share of profits.
- Tax-exempt status. As 501(c)(3) nonprofits, the schools do not pay capital-gains tax on investment returns, boosting net proceeds.
Scale and Performance
- Saint Francis’s original seed capital was about $250,000, contributed by two venture-capital parents in the 1990s.
- Barry Eggers estimates the Saint Francis fund has generated roughly $50 million in cumulative lifetime returns.
- Crystal Springs Uplands School’s “Crystal Growth Fund” reported approximately $1.75 million in private-equity investments within a $61.1 million portfolio as of June 2025.
- Menlo School’s “Menlo Venture Capital Endowment,” disclosed in its 990 filing for the year ended June 30, 2025, contains about 36 individual venture investments totaling less than $1 million—a modest slice of the school’s $122.6 million endowment.
Impact on Schools and Students
Revenue from these funds is earmarked for tuition assistance, teacher compensation and capital projects such as new facilities or innovative programs. Saint Francis president Jason Curtis emphasizes that the primary goal is to reinvest gains into the school community.
Students are invited to attend fund committee meetings and meet portfolio company founders, providing exposure to real-world entrepreneurship.
Official Statements & Responses
“It could be five years, it could be eight years before you see returns,” says Eggers, noting the long horizon. He adds, “they are providing access for us that we likely would not have otherwise.”
Why It Matters
These school-based venture funds illustrate a new fundraising paradigm for affluent private-school communities: leveraging parent investors’ expertise and capital to capture upside from the tech sector’s IPO pipeline. The tax-exempt status and absence of fees amplify net returns, while the educational component aligns financial activity with curricular goals.
Verbatim Quotes
- “We have a mix of people who have early stage and late-stage deal flow,” — Barry Eggers
- “There are no fees and carry here,” — Barry Eggers
- “Snap was an anomaly—a happy anomaly—for us,” — Barry Eggers
- “It could be five years, it could be eight years before you see returns,” — Barry Eggers
- “I’m talking about trying to build a fund that is ongoing,” — Barry Eggers
What’s Next
Interest in the Saint Francis model is spreading beyond the Bay Area, with schools on the East Coast and in Los Angeles seeking guidance on replication.
