Decoding Entrepreneurial Success: A Quantitative Investigation
Data is based on venture funding raised by companies in the US since June 2020
In the world of VCs, an analysis of the birthplaces of startups and the profiles of their founders yields significant revelations regarding the complex ebb and flow of the startup ecosystem.
Within LEONVC and LVC/LAB, we embarked on an examination of public datasets constituting 12,331 corporations. The principal focus of our work was the academic background of the founders and its ensuing correlation with the creation of startups and their ability to draw investments.
To understand the correlation between venture funding and a founder’s educational background, we looked at the founding teams of all the companies that have
Largest headcount in the US
Raised their last venture funding after June 2020
Raised more than $5m in total
Our research unveiled noteworthy conclusions.
Stanford, accounting for its Graduate School of Business, surfaced as the top institution with 941 startups established by its alumni. These corporations collectively accumulated an investment total equating to USD 141.8 billion.
MIT was a close competitor, with its alumni founding 535 startups that collectively raised an investment total of USD 102.4 billion.
Harvard University, encompassing the Harvard Business School, secured the third position with 483 companies and USD 107.1 billion in investment.
Upenn, inclusive of the Wharton School, demonstrated a record with 411 companies, raising a total investment of USD 57.6 billion.
This data accentuates the role these academic institutions play in catalyzing an entrepreneurial mindset amongst their student population. It also underscores the faith investors vest in startups that trace their roots to these institutions.
However, it's important to bear in mind that although these patterns offer intriguing insights, they represent a single dimension of the venture capital landscape. A founder's academic affiliation does not necessarily predestine their venture's success. The ecosystem is immensely diverse, and successful founders stem from an expansive array of educational backdrops.