FORTUNE — The dorm room is for today’s generation of young entrepreneurs what the garage was to their forefathers. So it’s not surprising that several venture capital firms have hired student “scouts” to patrol campuses for promising new start-ups.
But, until now, no venture capital firm had empowered students to make actual investment decisions. The exception to that rule is First Round Capital, which has committed $500,000 to what it’s calling The Dorm Room Fund.
Here’s how it works: First Round will hire a team of eight current students at Philadelphia-area universities, who will be expected to source and invest in startups founded by current students or recent graduates. No parameters on company sector, with typical investment sizes of between $10,000 and $25,000.
First Round partner Josh Kopelman will initially serve on the DRF investment committee, but his goal is for the effort to eventually be self-sustaining and self-managed. That means that the students will be asked to raise outside capital, and also pick their own successors (upon graduation).
In a blog post, Kopelman wrote:
Kopelman adds that if the Philadelphia pilot program is successful, then he hopes to bring the program to other cities.
First Round’s $500,000 commitment will come from its fourth fund, which recently closed with $135 million in capital commitments.
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