CASE STUDY | VENTURE CAPITAL / EDUCATION
Shaping the Future of Venture Capital:
How IMD is Expanding its VC Education
Europe’s venture capital (VC) industry is at a crossroads. Despite its growing startup scene and increasing investor interest, it struggles to match the success of global hubs like Silicon Valley. European VC funds average 1.7x returns on invested capital, compared to 2.5x in the U.S.
The challenges are clear: a lack of experienced fund managers, fragmented ecosystems, and underdeveloped exit markets. Without strong leadership and strategic thinking, Europe risks losing its brightest startups to more established markets abroad. Europe, if you will, needs to step up its VC strategy.
This reality was not lost on Professor Jim Pulcrano, who has spent decades helping entrepreneurs and engaging with venture capital ecosystems around the globe.
“In Europe, we need better-trained VCs who understand the entire lifecycle—from fundraising to exits. The knowledge gaps are too wide, and our startup ecosystem suffers as a result,” Pulcrano explained.
The Challenge: Addressing the Gaps in VC Education
Venture capital is a high-stakes, multifaceted industry requiring skills that combine financial expertise, operational strategy, and relationship management. However, many educational programs fall short, focusing narrowly on theory or deal-making without addressing the full spectrum of challenges fund managers face.
Professor Pulcrano recognized a critical gap: while participants might excel at sourcing deals, they lacked exposure to the complexities of managing a fund, navigating LP relations, optimizing portfolios, and handling exits. For Europe’s younger VC market, these challenges are even more pronounced.
“Venture capital isn’t just about choosing startups,” Jim explained. “It’s about managing an entire ecosystem—LPs, portfolios, and exits — under pressure.”
In Europe, these challenges are compounded by a younger VC market, fewer experienced players, and limited IPO opportunities. “We need better fund managers who can navigate cycles and exits,” Jim emphasized.
Jim saw a clear opportunity for IMD to differentiate itself in venture capital education by creating a dedicated initiative to address these gaps.
Such a program could equip participants with the practical skills and strategic insights needed to thrive in the field. As he put it, “If we want to elevate the European venture capital ecosystem, we need to develop better fund managers—people who not only understand the mechanics but can lead with confidence and clarity.”
These challenges set the stage for a bold initiative: integrating a practical, immersive element into IMD’s venture capital curriculum to better prepare participants for the realities of the industry.
Piloting the Fund Manager! Simulation at IMD
Teams working their way through their Fund Manager! challenges
Recognizing the need for better training in the intricacies of venture capital fund management, Pulcrano spearheaded the introduction of the Fund Manager! Simulation at IMD.
“We needed something tangible to help participants truly understand how VC funds operate. The Fund Manager! Simulation offered a solution that combined real-world complexity with an engaging, gamified approach. I wouldn’t have adopted the simulation if I hadn’t experienced it myself — it was clear it could deliver a transformative experience for our participants.” explained Pulcrano.
The simulation was piloted as a two-day intensive program in September 2024, Building Winning Portfolios, integrated into IMD’s “Venture Capital Asset Management” program. It was attended by IMD MBAs, as well as alumni of IMD’s original VC program.
The 10-12 year fund journey – all mapped out
“The simulation is just beautiful and it gives people this very tangible understanding of how a fund works and how to make decisions.”
The Strategy Tools team – represented by Christian Rangen, Scott Newton, and Henrik Amstutz – worked closely with Pulcrano to ensure the two-day program went without a hitch.
As faculty and visiting faculty at more than 15 business schools across the globe, Scott and Chris have a long history of innovating how they taught in classrooms. Drawing from their extensive experience in designing innovative executive programs with high impact, Chris and Scott adapted the simulation to fit IMD’s rigorous executive education schedule.
“From the start, Chris and the team showed they understood the kind of hands-on, transformational learning experience we wanted for our participants,” Jim noted. “The Fund Manager! Simulation helped bring the complexities of venture capital to life.”
How many GP Tasks can your team handle?
Goals and Objectives of the Program:
- Equip participants with a deep understanding of VC mechanics, from sourcing deals to managing portfolios.
- Train LPs and GPs to make informed investment decisions and nurture startups.
- Highlight the importance of fund management beyond deal-making, focusing on long-term portfolio value creation.
The pilot program took place over an intense weekend in September 2024 at the IMD campus in Lausanne, immersing participants in the dynamic and challenging world of fund management.
Working in teams, participants navigated the highs and lows of fund management. They developed investment theses, conducted capital calls, managed portfolios, and dealt with boom-and-bust scenarios.
Over two intense days, the teams walked through the full venture capital fund lifecycle, from strategy development to delivering investor returns.
Teams working to secure LP commitments
“The intensive two-day workshop provided a rare and invaluable deep dive into the full lifecycle of building and managing a VC fund—from fundraising to value creation to exits. Even with experience in the space, I gained fresh insights, especially on the importance of early exit planning. Waiting until the last moment to exit can lead to suboptimal outcomes under pressure, making early preparation crucial.”
“Even with years of experience, there are plenty of concepts we don’t fully utilize or grasp. This program clarified them significantly and gave me new insights.“
Impact
The Building Winning Portfolios Workshop left a lasting impression on participants, transforming their understanding of VC fund management. Many highlighted how the simulation bridged the gap between theoretical knowledge and real-world application, compressing the complex lifecycle of a venture capital fund into an engaging and high-pressure experience.
Complex deal-making in real time
“The program helped me understand the dynamics of how all the different parts play together. You’re fundraising on one hand, building your pipeline of target companies, managing capital calls, and at the same time thinking about how to exit those investments. It was a very rewarding experience”
Participants walked away with:
Enhanced Practical Understanding of VC Dynamics
Participants gained hands-on experience with the full lifecycle of a VC fund, from building an investment thesis to managing portfolios and navigating exits, bridging the gap between theoretical knowledge and real-world application.
One of the participants, Wolf-Christian Eickhoff, reflected, “I got a much better understanding of the full VC fund lifecycle — not just in a theoretical way, but hands-on, because you’re running through the whole thing in these two days, from building your investment thesis to exiting your investments. You have to do it all.”
Day 2: complexity increasing and rising pressure on back office management
Improved Teamwork and Leadership Skills
The collaborative and high-pressure environment fostered critical skills such as delegation, decision-making under time constraints, and effective team coordination, leaving participants better equipped for leadership roles in venture capital.
The interactive nature of the simulation not only deepened their comprehension but also fostered collaboration and strategic thinking. “It was like a crash course in the VC ecosystem,” remarked Fairuz Shariff. “But beyond the technicalities, it showed me the importance of teamwork, delegation, and decision-making under pressure.”
Tangible Insights into Key Metrics and Strategies
Through the simulation, participants developed a clearer grasp of industry benchmarks like DPI and MOIC and explored strategies for portfolio optimization, LP management, and successful exits, directly applicable to their professional ventures.
For Enrique Alvarado Hablutzel, the weekend pilot was more than educational; it was transformative. “This program changed how I see fund management and gave me tools I can use in my professional journey,” he shared. He also emphasized the simulation’s unique ability to expose blind spots in day-to-day practices, even for those already in the industry. “Even with years of experience, there are plenty of concepts we don’t fully utilize or grasp. This program clarified them significantly and gave me new insights.”
“It was an intense two days, but it was very elaborate and well-organized. The simulation showed the high-stakes nature of VC—it’s challenging and not easy to scrub through and find the next big success like Chris Sacca’s 250x with Uber.”
A Bright Future for Collaboration
The overwhelmingly positive feedback validated the program’s innovative approach and its potential to shape the future of venture capital education.
“The condensed timeframe was intense,” Jim remarked, “but it helped us quickly see the potential of the simulation to transform how we teach venture capital.”
The successful pilot not only provided actionable insights but also set the stage for future iterations, with plans to expand and refine the program based on participant feedback. This partnership marked an important step toward IMD’s goal of becoming a leading hub for venture capital education.
“From what I’ve seen, there are little things here and there but no concentrated effort [like this] to create a hub for venture capital training. Strategy Tools helped us address that gap. The collaboration with Strategy Tools team was great, and I can see how we can easily integrate this into a much better red thread for future programs.”
About IMD
IMD (International Institute for Management Development) is a globally recognized business school based in Lausanne, Switzerland. Founded over 75 years ago, IMD is renowned for its executive education programs, which consistently rank among the best in the world. Focused on leadership development and organizational transformation, IMD offers a wide range of programs tailored to meet the needs of executives, entrepreneurs, and aspiring leaders.
About Jim Pulcrano
Jim Pulcrano, Adjunct Professor at IMD Business School
Jim Pulcrano is an Adjunct Professor of Entrepreneurship and Management at IMD Business School with deep expertise in entrepreneurship, innovation, and strategy. A former Executive Director at IMD, he has played a pivotal role in fostering entrepreneurial ecosystems, including founding the IMD Startup Competition, which has supported over 500 startups since 1998.
Pulcrano is Director of the Venture Capital Asset Management (VCAM) program and teaches across IMD’s MBA, EMBA, and custom programs. He has collaborated with leading organizations such as Bayer, Lenovo, UEFA, and the Swiss government, blending academic rigor with practical business insights, as well as many, many startups and scaleups.
Beyond teaching, Pulcrano has co-founded three startups, served on the boards of multiple organizations, and contributed to entrepreneurial education through roles with Innosuisse and Switzerland’s Venturelab. With a doctorate from Grenoble Ecole de Management, an MBA from IMD, and a mechanical engineering degree from the University of Missouri, he brings a wealth of experience to his work at the intersection of business and academia.
About the Venture Capital Asset Management Program:
The VCAM program is designed for individuals within the venture capital ecosystem seeking to deepen their understanding of venture investing and asset management. Under Jim’s leadership, VAM equips participants with the skills to make informed investment decisions and effectively manage venture assets.
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Bring experiential VC learning to education programs globally
IMD’s collaboration with Strategy Tools has demonstrated the power of this innovative program to close learning gaps, foster collaboration, and inspire future venture leaders. As Jim Pulcrano put it, “The simulation makes the complexities of venture capital tangible and real, transforming how we teach this dynamic industry.”
Do you want to explore how your business school can teach venture capital through a hands-on, experiential learning format? Speak with Chris Rangen, faculty and developer of VC Fund Manager! to learn more.