Arul Kapoor, a graduate of Computer science and Math with a Concurrent Masters in Statistics. Originally from New York, he is passionate about startups and founder ecosystems. Arul is the Co-Founder and President of Prod, a leading MIT-Harvard startup accelerator. Additionally, he co-founded Collab Rooms, a virtual collaboration platform for university students, as well as interned at Alpine Investors, Point72, and Two Sigma. 

HTR:

To start off, Arul, I’m curious about your time at Harvard. In particular, can you tell us about any thought leader or innovator who has inspired you the most during the past four years?

Arul Kapoor:

When I came to Harvard, I viewed it as a very static institution. I thought that everything that needed to exist was already established and we were just here to follow a given path. However, my perspective changed during my freshman and sophomore years. I realized that Harvard is more of a tool and we should utilize this amazing institution to our advantage.

Two instances that shifted my perception were my interactions with the Harvard Undergraduate Capital Partners and the Consulting Group. First, during my interview with HUCP, I met the founders who spoke passionately about their vision for the Harvard entrepreneurship ecosystem. This experience was inspiring because it showed me that students can really have an impact on the school.

Secondly, I was part of the board of HCCG, an old organization that I thought operated in a certain way. However, the heads of the organization, Alex Lunardi and Albert Mao, expressed a desire to completely revamp the organization, which was both ambitious and motivating. These experiences fired me up and made me realize the impact that can be made at Harvard.

HTR:

You’ve been involved with Prod, a startup accelerator for Harvard and MIT students. Can you describe why you decided to step up to the challenge of leading Prod, especially during the past year?

Arul Kapoor:

Prod has one goal, which is to make entrepreneurship a viable career option for any student. This resonates with me because I noticed a talent allocation paradox at Harvard and MIT. Surprisingly, although most students want to make an enormous impact, few end up working in high-impact roles.

I came to Harvard as a math, computer science, and statistics student. When I asked what the smartest students in these fields were doing, the answer was always quantitative finance. I followed this path and interned at a few hedge funds, but over time I became frustrated that my impact was limited to improving the compensation of my team. This led me to entrepreneurship, which allows us to make a positive impact on the world.

HTR:

You’ve undoubtedly made an impact through Prod. Could you share moments from these experiences that felt like a significant win for you?

Arul Kapoor:

Most people are aware of the financial statistics related to Prod. For example, last year, our first cohort of 16 teams raised $25 million at a $40 million cap, and this year, over 30 teams had already raised $14 million by Demo Day. But the number I’m most proud of is how many teams are going full-time with their companies.

Currently, two dozen companies from Prod’s second cohort are on track to go full-time. This shows that the community we’ve built is making a difference. The most fulfilling moments for me come from seeing Prod teams deciding to live together beyond the program. This suggests that we’ve created lasting friendships, which is inspiring and energizing.

HTR:

It seems there are two parts to consider when looking at running a startup accelerator: first, understanding the needs of students and second, positioning within the broader ecosystem. How did you approach these elements when designing prod back in 2021?

Arul Kapoor: 

Yes, initially, we thought that students needed resources like funding, mentors, pedagogy. But after conducting numerous user interviews with student founders, we realized that they had a crucial need for community. Starting a company at college can be a very isolating experience, and that’s a stark contrast to the highly social nature of college life. So we aimed to build a robust community around prod to support those who were serious about starting a company. We believe that our community-driven approach is the most valuable aspect of prod.

HTR:

How does prod position itself in the broader startup ecosystem?

Arul Kapoor: 

There are many external organizations that extract value from university talent. We thought it was crucial for prod to align fully with the interests of students. To ensure this, we established prod as a non-profit, taking no equity in any of our companies. The trust we have with our founders is unparalleled. We believe our founder-first, student-first approach has not only differentiated us but also contributed significantly to our success.

HTR:

Why do you believe that student startups are essential, and what is your vision for prod in the future?

Arul Kapoor: 

Students, despite their lack of experience, bring a unique perspective to startups. Their naivety often leads to innovative thinking and challenging of the status quo. And we’ve seen this reflected in the data. Prod’s goal isn’t necessarily to ensure the first startup a student works on becomes a huge success, although that’s certainly possible. We’re more interested in the long-term impact, the partnerships formed between cohorts, and the potential for creating the next big thing. We want to sow the seeds of entrepreneurship early. We’re also exploring how we can support those who are still deciding if startups are right for them and help them acquire the necessary skills.

HTR:

Outside of prod, what hobbies or interests have influenced you or benefitted you in surprising ways?

Arul Kapoor: 

I was heavily involved with the South Asian Men’s Collective, my first time participating in an affinity group. I made some incredible friends through that organization and learned a lot. It also happened that many of the upperclassmen there were interested in startups and computer science, which influenced many of my choices throughout college.

HTR:

If you could give your younger self advice about navigating Harvard, what would it be?

Arul Kapoor: 

It’s easy to lose your identity at a place like Harvard, where there are predefined paths to follow. But it’s important to identify and follow your passions, whether they align with the norm or not. I would encourage myself to take more risks and make the most of the unique opportunities at Harvard. Also, slow down and appreciate the journey, as college years go by very fast.

HTR:

And what do you want to be when you grow up?

Arul Kapoor: 

I see myself as a founder of a company.

HTR:

How do you envision the startup ecosystem at Harvard looking, say, 20 years from now.

Arul Kapoor:

In my perspective, there is a significant cultural challenge to be addressed first. The concept of someone, particularly in their freshman or sophomore year, declaring that they want to start a company should be normalized. And not just expressing the desire, but actually kick-starting the company either immediately or as their career path post-graduation. There’s much work that needs to be done on this front.

A second major area for improvement pertains to the demographic representation of founders. I am advocating for gender parity and increased representation from underrepresented minorities in the startup ecosystem. We’re making strides towards this, but we’re far from perfect. And this isn’t just about Harvard and MIT, but the wider entrepreneurial ecosystem too.

In fact, one of the most tangible ways we can enhance the entrepreneurial ecosystem is by ensuring underrepresented groups have equal opportunities. Therefore, looking 20 years into the future, I aspire to see our entrepreneurial community reflect the diversity of Harvard itself, if not more. The existence of such a diverse entrepreneurial track would truly be something special.