Alumni, community leaders 'invest' in students' companies

Augustana CFO Kirk Anderson  ’91 earned a 166% ROI on the student businesses he chose to invest in, resulting in a $3.6 million windfall on January 21.

Sound too good to be true? It is.

Anderson was one of 14 alumni and community leaders role-playing venture capitalists for business students in a popular January Term course, led by Dr. Amanda Baugous, Dr. David Thornblad and Assistant Professor Angela Boelens.

The 42 students in the class were divided into 12 teams and built virtual companies. In the middle of the term, each team pitched their company and plans to potential investors in a competitive simulation.

The simulation is commonly used in graduate business programs and top business schools. It offers an intensive, immersive experience for students to apply the concepts and skills they've learned in class.

“I think what makes this simulation experience most impactful is that not only are students asked to integrate ideas, data and content from across disciplines to make decisions but, most importantly, they are asked to present the strategy and plans they've developed to an external audience,” said Dr. Baugous.  

“They aren't presenting to their faculty or to other students. They are presenting and defending their plans to, and negotiating commitments with, organizational and community leaders who specialize in the fields the students are studying.”

For the simulation, the students designed product portfolios, advertising campaigns and distribution channels using evolving analytics data. They managed demand, sales, operations and finances in a realistic game-world with limited resources.

“The stakes feel higher and students rise to that occasion with more thorough and intensive preparation and practice, which is where the deepest learning of the course seems to occur,” Dr. Baugous said.  

In 2023, only one Augustana team qualified in the top 10% of all teams around the world that had ever competed in the simulation. This year, Augustana had four of its 12 teams perform at that level.

According to the Marketplace Simulations website, placing in the top 10% of all teams that have played the simulation over many years reflects a high level of business acumen and work ethic. The team must successfully execute a complete business strategy in an evolving market, using evidence-based decision-making.

“Two teams found themselves on the brink of ruin but managed to discern the root of their problems in the last quarter and ended the simulation with a solid profit, instead of the emergency loan they were projected to need,” Dr. Baugous said. “It's always great to see groups of students in a frustrating situation gather themselves to refocus and end on strong footing.”

Due to the popularity of the J-term course, additional faculty were involved this year so more students could participate.  

Alumni and community members who role-played venture capitalists in the simulation were: 

Kirk Anderson  ’91, Brandon Cooper  ’06, Luke Goucher  ’03, Michael Grchan  ’06, Brandon Harris  ’03, Amber Johnson  ’23, Paul Kleinhans-Schulz  ’14, Melissa Flowers  '09 Pepper, John Peters  ’13, Jonathan Sprawka  ’02, Moline Mayor and Professor of Music Dr. Sangeetha Rayapati, Rock Island Mayor Mike Thoms, Rock Island City Manager Todd Thompson and Blackhawk Bank's Kevin Bradley.

"It was great to see our students working through real-life examples that they will see after graduation,” Anderson said. “The exercise provided some key lessons in understanding the impacts of management decisions while operating in a competitive market environment."