How Two Gen Z Venture Capitalists Built A $25 Million Fund To Back MBA Grads

Key Concepts

Meridian: An investment firm founded in 2023 with a focus on technology businesses that aim to transform humanity and the world.
Durable Investment Firm: A firm built for long-term success, not just a fund.
Founder Profile Specialization: Meridian's strategy of focusing on a specific type of founder rather than sector expertise.
MBA Founders: Individuals with an MBA from one of the top 10 US business schools, identified as a high-potential founder profile.
Deferred MBA Programs (e.g., 2+2): Programs allowing college seniors to gain admission to an MBA program, deferring enrollment for 2-5 years of work experience.
Early Admit: Devon Carlton's previous company, which specialized in admissions consulting for deferred MBA programs.
Stanford Research: A study by a Stanford professor analyzing venture-backed billion-dollar tech companies to identify correlations between school origin and success rates.
Pipeline Development: Meridian's multi-pronged approach to identifying founders, including leveraging the deferred MBA community, building relationships with other funds, and using AI tools.
Founder Skill Sets (MBA Advantage): Network, credibility for raising capital, and leadership skills to attract and retain talent.
Venture Capital Inflection Point: The current state of the venture capital market, characterized by uncertainty, the rise of AI, and increased competition.
Alpha Generation: Creating returns that outperform the market average.
Systematic Thinking for Founders: A methodology for identifying business opportunities by breaking down the US economy industry by industry and identifying automatable white-collar jobs.
Wedge Product: An initial product designed to solve a specific niche problem and gain market entry.
Trust with Investors: Building early relationships and transparency with limited partners.
Unique Model: Meridian's differentiated approach to venture capital, targeting a specific founder profile early in their careers.

Meridian's Vision and Fundraise

Meridian, founded in 2023, is an investment firm with the vision of building a "durable investment firm" rather than just a fund. They recently closed their target fundraise of $25 million, aiming towards their hard cap. Their investment thesis centers on identifying and backing technology businesses with the potential to "transform humanity and transform the world." Meridian emphasizes working closely with their Limited Partners (LPs) to serve their founders and integrate evolving technologies like AI into their business operations in unique ways to provide value.

Meridian's Differentiated Thesis: Focusing on Founder Profile

Meridian distinguishes itself by specializing in a particular founder profile rather than sector expertise. Their contrarian approach focuses exclusively on individuals with an MBA from one of the top 10 business schools in the US. This strategy is supported by research, notably a Stanford study, which indicates that business school founders have demonstrably high success rates in building billion-dollar tech companies. Meridian aims to achieve "airtight coverage" within this specific founder segment, ensuring they identify and invest in the highest potential founders at the earliest stages.

Identifying Top MBA Founders: The Stanford Research and Early Admit Advantage

The selection of the "top 10 schools" is directly derived from research published by a Stanford professor. This research analyzed venture-backed, billion-dollar tech companies over the past two decades, establishing a clear correlation between specific business schools and the success rates of their graduates as tech founders.

Meridian's ability to identify these founders early is significantly enhanced by Devon Carlton's prior experience with "Early Admit," a company he launched in 2020. Early Admit specialized in admissions consulting for deferred MBA programs. This program, which emerged in 2020, allows college seniors to gain admission to an MBA program and defer enrollment for 2-5 years of professional work experience. Through Early Admit, Devon built relationships and a community that now allows Meridian to identify and engage with potential MBA founders up to five years before other venture capitalists.

The Evolving MBA Landscape and Meridian's Pipeline

Historically, MBA programs were perceived as pathways to Wall Street or consulting. However, there's a significant trend towards entrepreneurship, partly driven by schools like Stanford, which have a strong track record of graduating successful tech entrepreneurs. Other top schools like HBS, Wharton, and MIT are actively shifting their focus, admitting more STEM and tech-oriented students and encouraging entrepreneurship post-graduation. For instance, the percentage of Harvard Business School graduates starting companies has risen from approximately 5% a decade ago to nearly 20% today, with schools aligning resources to support this path.

Meridian employs a three-pronged approach to build its founder pipeline:

Deferred MBA Community: Leveraging relationships built through Early Admit, Meridian can connect with individuals 3-5 years before they even start business school, establishing early engagement.
Brand and Partnerships: Meridian has cultivated a reputation as a fund that invests in MBAs. They actively engage with other venture capital funds, sharing deals and fostering partnerships, leading to deal flow from other investors.
AI-Powered Web Scanning: For any opportunities missed through the first two channels, Meridian utilizes an AI tool that scans the web for information about individuals starting companies with MBAs from their target schools, triggering notifications for outreach.

The MBA Founder Advantage: Beyond Data

While data supports the success of MBA founders, their advantage extends beyond statistics. Key underlying characteristics and institutional support include:

Network: MBA programs provide access to a powerful network, which is crucial for various aspects of business, including identifying potential buyers during company exits (as many buyers are often alumni of the same schools).
Credibility for Capital Raising: An MBA from a top institution offers a stamp of credibility, making it easier to raise capital.
Talent Acquisition and Retention: Top business schools aim to develop leaders who can transform society. This leadership quality is essential for attracting and retaining talent, a critical factor for startup success.

The Founding Story of Meridian: A Tale of Fortune and Grit

Devon Carlton and Carlton, both MBA graduates and founders themselves, met through a series of fortunate events and shared aspirations.

Carlton, originally from a small town in Arkansas, studied engineering. A leadership class led him to read Bill George's book "Discover Your True North," which introduced him to Harvard Business School (HBS). He discovered HBS's 2+2 deferred admission program, applied speculatively, and was accepted. This event fundamentally altered his life trajectory. Two days later, he met Devon.

Devon, from Tacoma, Washington, grew up in poverty with a single mother. He developed strong entrepreneurial skills early on through sales, including selling candy and running a lawn care business. After moving to Utah, he was fortunate to be taken in by grandparents and later by a family that emphasized the power of education. He attended Utah Valley University and then the University of Utah, where he was accepted into the HBS 2+2 program.

Their initial connection was professional, with Devon reaching out to Carlton about his experience in private equity. This led to a friendship, and eventually, Devon proposed the idea of launching a venture capital firm together. This partnership was formed six months before they both attended HBS.

Launching Meridian: A Proof of Concept and Dual Fundraise

Before attending HBS, Devon was working for a growth equity firm in Utah, focusing on lower mid-market software investments, while Carlton was at a family office in Arkansas, doing similar work. They even shared deal flow at their respective firms.

Devon had also been "moonlighting" a business called Early Admit, which he eventually resigned from to focus on its sale. Early Admit experienced significant growth, employing 80 people and serving large university systems, before being sold to private equity.

In January 2023, they set out to raise $1 million for a proof-of-concept fund. They navigated this fundraising process from the ground up, without relying on their prior firms' networks or tier-one resumes, in a challenging economic environment where established firms dominated capital allocation. They successfully raised an oversubscribed round, closing in early August 2025, just before starting HBS.

Remarkably, they raised their second fund during their time at HBS, a challenging but highly educational experience.

Key Lessons Learned: Time Management and Market Dynamics

The biggest lesson learned from juggling these ventures during business school was time management. Their advice for effective time management is ruthless prioritization: identifying and focusing on the 2-3 most important tasks each day that will move the needle, while filtering out distractions.

The Venture Capital Landscape: An Inflection Point

The venture capital market is currently experiencing an inflection point due to several factors:

Uncertainty and Opportunity: The current market is uncertain, which can paradoxically create significant opportunities.
The Advent of AI: Meridian believes AI represents a "tectonic shift" in the technology market, poised to generate unprecedented value capture.
Pricing Challenges: While AI offers opportunities, it also presents challenges in deal entry pricing. Meridian must ensure entry prices are reasonable relative to exit potential to deliver top-tier returns to their LPs.
Increased Competition: Established venture capitalists are moving down-market, competing with emerging managers who have greater financial resources.
Commoditization: The venture capital industry is transitioning from a "cottage industry" to a commoditized one, necessitating differentiation to create "alpha" (outperformance).

Meridian is focusing on finding "neglected investment opportunities" within AI that other investors might be overlooking, aiming to serve these niches and generate outsized returns.

Advice for Founders: Systematic Thinking and Execution

For founders seeking investment, Meridian offers the following advice:

Think Systematically: Identify opportunities by breaking down the US economy industry by industry. Within sub-verticals, pinpoint white-collar jobs that are likely to be automated in the next 5-10 years.
Build a Strong Team: Combine a great commercial founder with an excellent Chief Technology Officer.
Hyperfocus on Niche Problems: Solve a specific problem within a large enough market for a venture exit (billion-dollar potential) but not so large that it attracts intense competition from major players.
Create a Wedge Product: Develop an initial product that solves a real problem for a business, serving as an entry point.
Expand and Scale: Over time, address adjacent problems and expand the contract size to build a substantial business.
Execute a Playbook: While ideas are important, successful founders execute a specific playbook and strategy. They have a clear "why now" insight and have deeply considered all the necessary components for success.
Build Trust with Investors: Founders should not fear sharing their ideas, as execution and strategy are key differentiators. Building trust early on with investors is crucial.

Meridian's Unique Pitch to Limited Partners

Meridian's pitch to their LPs is built on their unique model:

A "Why Now" Moment: The deferred MBA landscape fundamentally changed in 2020, creating a unique opportunity that Meridian capitalized on.
Targeted Founder Profile: They can identify and target a specific founder profile (top MBA graduates) that has historically outperformed the market, up to five years before other VCs.
Non-Traditional Advantage: Meridian views their non-traditional background as an advantage, allowing them to relate to founders (the average unicorn founder is 28) and stay familiar with emerging technologies.
Alpha Generation Potential: They believe their unique approach positions them to create alpha for their LPs.

Conclusion

Meridian is an emerging investment firm strategically positioned to capitalize on the current technological revolution, particularly in AI. Their differentiated thesis, focusing on a specific, high-potential founder profile (top MBA graduates) identified early through unique channels, sets them apart in a competitive venture capital landscape. By combining rigorous research, innovative pipeline development, and a deep understanding of founder needs, Meridian aims to generate significant returns for its investors by backing transformative technology businesses.