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Formula
for Success in Venture Capital
By Mary Friedberg
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Karen
E. Kerr ’89
Photo: John
R. Boehm Reproduced with permission
from Crain’s Chicago Business
©2000
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When
Karen Kerr graduated from Bryn Mawr in 1989, she
planned to become a chemistry professor. But shortly
before completing her Ph.D. in physical chemistry
at the University of Chicago, her career took
an unexpected turn, thanks to "a little bit of
serendipity" and her Bryn Mawr credentials.
Today,
Kerr runs the New York office of a Chicago-based
venture capital firm and is a role model for women
investment professionals and entrepreneurs, especially
African-American women.
Kerr,
32, is a managing director of ARCH Venture Partners,
focusing on early-stage information technology,
and specialty chemicals and materials companies.
"Much of what we get involved with are raw start-ups
out of universities, national labs, and corporate
research. I get a chance to put on my chemist's
cap to talk to professors, understand their technology,
discuss marketing opportunities, and be a partner
to them in building these new companies," she
says.
Kerr
was introduced to the world of venture capitalism
while working on her doctorate. At the time, she
was considering her career options. Shortly after
reading a newspaper article about venture capital,
a colleague asked her to help him write a business
plan for ARCH Development Corporation. Initially,
she suggested an organic chemist would be better
suited to the task. But ARCH executive Keith L.
Crandell assured her he had complete faith in
her abilities because she went to Bryn Mawr, just
like his wife, Susan E. Davis '82.
Building
the Business
Kerr
worked at ARCH Development as a consultant while
finishing her dissertation. In 1995, she headed
to Patricof & Co. Ventures in New York, for
the first year of a two-year fellowship from the
Kaufman Foundation for Entrepreneurial Leadership.
In 1996, when ARCH Development spun off its early-stage
venture fund, ARCH Venture Partners, Kerr returned
to Chicago to join the firm as an associate. She
became a managing director in 1999.
In
January, Kerr moved back to New York to help expand
the firm's East Coast presence. "The goal is to
build that office and use it as a springboard,
not only for looking at investments in the New
York region, but to get into Boston and down into
some of the mid-Atlantic states," she says. The
company, which employs about 45 people, also has
offices in Seattle, Albuquerque, and Austin.
In
February, Kerr married Dietrich Kappe, a fellow
New Yorker and University of Chicago alumnus.
Kerr, who kept her maiden name, and Kappe, founder
of an IT consulting group called Pathfinder Associates,
are buying a condominium in New York City.
Kerr
describes herself as a person who tries to master
whatever she's doing. For example, she played
on championship tennis teams in high school and
at Bryn Mawr. "If I'm going to do something, I
want to be good at it. If I'm not, I'm going to
work harder on it," she says.
During
the past five years, Kerr led investments in a
number of companies, including Philadelphia-based
Infinicon Systems, which is developing a next-generation
switching product initially targeted at storage
area networking. She is a director or board observer
of several companies.
Role
Model for Women Entrepreneurs
Kerr
also has become a role model for women in venture
capital. Less than 30 percent of the people in
the industry are women, and she's one of only
a handful of African-American women, she estimated.
"It's an industry that's largely been an old-boys'
network. In recent years, we've seen more women
come into the industry, but it's certainly something
I'm interested in helping to promote," she says.
Kerr
is on the Steering Committee of Springboard 2001-Midwest,
one of a series of venture capital conferences
organized by the National Women's Business Council
to help women entrepreneurs gain access to capital
markets, and served in various roles for earlier
Springboard conferences. She's also a member of
Bryn Mawr's Slade Committee, which focuses on
encouraging leadership-giving to the annual fund.
She was a board member of the Chicago alumnae
club and co-chaired the Reunion Gift Committee
for the 10-year reunion of her class in 1999.
As
one of the top women in venture capital, Kerr
is often asked for career advice. She encourages
students to get a well-rounded education. "I don't
actually think it matters what you major in. To
get in there, learn how to think, and develop
some good communication skills — that’s
all that really matters," she says.
For
her, the technology training she received at Bryn
Mawr and the University of Chicago has been very
helpful since ARCH Venture Partners invests in
technology companies. She also credits Bryn Mawr
with helping her to hone her writing skills and
develop leadership skills. She was co-president
of her class and head of the Honor Board, where
she learned to resolve disputes. "I use that skill
all the time with management teams and other board
members when we're talking through difficult issues,"
she says.
Although
Kerr plans to stay in venture capital for the
foreseeable future, she may venture back into
the classroom someday. "Probably at the end of
what I hope is a successful career in venture
capital, I could fancy myself teaching chemistry
and doing research," she says.
About
the Author
Mary
Friedberg writes frequently on education, health
care and business news. She was the editor of
the Cincinnati Business Courier and business
editor of The Kentucky Post.
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