<span style="font-size:small;">Which start-up ventures the <span data-scaytid="12" data-scayt_word="DRF">Dorm Room Fund</span> invests in is entirely '''decided upon by the student investors,''' meaning the investors can truly relate to what other students are trying to accomplish and the problems a student start-up may encounter. By using this approach to start up investment, it gives the <span data-scaytid="13" data-scayt_word="DRF">DRF</span> a very unique perspective compared to traditional investment teams. </span>
== '''Financing''' ==
<span style="font-size:small;">DRF invests on a founder-friendly uncapped convertible note. This means that the student investment group loans money to a startup, but instead of receiving the invested money back after a certain time period, the note converts into stock. However, if the startup is successful without raising additional capital or pursuing equity financing, the note may not convert and the startup can choose to simply repay the note plus a very nominal (around 2%) interest rate. The Dorm Room Fund operates as transparently as possible so that every aspect of their terms and conditions are clearly understood. Knowing the risk in investing in student start-ups, the DRF fully understands that a '''failed company is not the same as a failed entrepreneur'''. As long as all persons involved learned from the failure, the student investment group views the money invested in the student start-up as tuition paid toward an entrepreneurial education. The Dorm Room Fund takes a loss and the founders '''DO NOT need to repay the money''' under any circumstances.</span>
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== '''The Support System'''<br/> ==
<span style="font-size:small;">The most incredible thing about this program by far is the knowledge and experience that the RA ([http://dormroomfund.com/about#advisors DRF Advisors]) support system gives to the student entrepreneurs. The 60 RA's have a combined 450 years of entrepreneurial experience and together have produced $2.7 Billion in exit revenue. This network gives students accepted into the program a huge advantage from the advice and recourses they receive. </span>