Student seed fund makes first investment

Finding funding at the tender seed stage can challenge the best startups, but a new student-led $10 million seed fund at the University of Michigan’s Zell Lurie Institute helps make entrepreneurial dreams come true.

The Zell Founders Fund, created in 2015 by a donation from Sam and Helen Zell, invests in startups by recent U-M graduates. It has chosen its first company to support: Sneakers by Jordana, started by recent alumnus Jordana Schrager. The $100,000 investment will be used to start mass production on a new footwear and fashion line that features Jordana’s unique and signature artistic style.

“Jordana’s was the first deal we considered for the Zell Founders Fund. It was an instructive process for both sides,” said fund manager Stewart Thornhill, executive director of the Zell Lurie Institute. “It’s been a nice relationship where we’re able to continue to help our alumni. We all win if she succeeds. We’re all partners in her business. It’s not a grant. It is an investment.”

Schrager, who graduated from U-M in 2015 with a bachelor’s in art and design and with a business minor, started designing the sneakers in high school. She’s made custom shoes for celebrities such as Miley Cyrus, Ariana Grande, P!NK and Selena Gomez. The custom sneakers sell for $250 to $400.