institutionalinvestor.com: Research shows that endowments’ investments in companies founded by alumni and professors have fewer successful exits than ventures without connections.
As university endowments scour the venture landscape for direct deals, avoiding companies founded by alumni could result in better returns.
New research shows that direct investments in university-affiliated startups can result in far fewer successful exits, including initial public offerings and acquisitions, compared to backing independent ventures.
- institutionalinvestor.com: https://www.institutionalinvestor.com/article/b1x8fgk4svmtg5/Want-to-Outperform-in-VC-Don-t-Invest-in-Alumni
- Alicia McElhaney: https://www.institutionalinvestor.com/topic?author=Alicia%20McElhaney
- Research Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4016443