Weiss Tech House mentor David Birnbaum feels that the most successful entrepreneurs are the ones who have failed -- especially when they are young.
An unsuccessful business is often the result of variables beyond one's control, so it really forces prospective business owners to ask "how hungry" they are to succeed in the future, Birnbaum said Tuesday at Weiss Tech House.
Just over a dozen students and several community members attended a dinner, where Birnbaum talked about his experience in innovations and markets from a venture capital perspective.
In much detail, he discussed private equity -- the umbrella under which venture capital falls. Private equity serves as a "pass-through entity" that helps private organizations, individuals or institutions invest their money in startup businesses.
Gary Baker, a trainee in radiology at the Hospital of the University of Pennsylvania, came to see Birnbaum speak because he is "interested in learning about business and health care," adding that "entrepreneurs are moving the country. They are a pivotal part of our economy."
Surveying the competition, creating a business plan and finding a niche are three key steps in starting up any business, Birnbaum said. For those with good ideas, Weiss Tech House can provide funding to take their project to the next step.
Prior to coming to Penn, Birnbaum tried his hand at what he termed "the terrible animal" of investment banking. He commented that, while at Wharton there is an apparent obsession with entering this industry, it "doesn't mean you have to do it."
Birnbaum -- who is currently a 2005 Wharton MBA candidate -- also has experience in private equity and was pivotal in starting a small company.
"To be honest, I do not think an MBA is necessary," Birnbaum said, adding, however, that it is great for people without a background in finance and those seeking to network.
Though Birnbaum felt that his background in investment banking opened the door to private equity, he didn't recommend that others follow his same path, especially if they want to be entrepreneurs.
He suggested that another way to get involved with private equity is by working at a consulting firm, though he admitted that there is no easy way to break into the field.
Audience members said Birnbaum's speech impacted them.
"This opened my eyes to the world of business," Engineering freshman Tal Raviv said. "Coming to things like this [shows] me that there are opportunities out there and puts a face on business."
