Two Ivy League schools turn out great startups but they never stick around.
SAN FRANCISCO--Startups emerging from Harvard University and University of
Pennsylvania invariably flee Massachusetts and Pennsylvania to grow their businesses, a
disturbing trend for communities and governments nearby that want to
build tech-savvy economies in the coming decades.
That's one disturbing nugget from a new 60-page
study (free registration) from the
venture-capital research firm CB Insights.
To be sure, it's not all doom and gloom. Harvard and Penn are two of
six major universities--the others are Stanford, U.C. Berkeley, MIT
and NYU--that the researcher examined to determine how many startups emerge from universities, how much venture funding they attract, the type of technology they advance and where those startups ultimately locate.
Startups from Stanford, Berkeley stay in California,
partly due to the Silicon Valley's appeal.
The study found that among those schools, $12.6 billion was invested
in 559 deals involving alumni between 2007-2011. For context, that's
a fraction of the $135 trillion in venture capital invested overall
during the same five years.
- Stanford is the big man on this campus, taking in $4.1 billion
in 203 deals since 2007.
- Stanford and Berkeley startups almost without fail locate in
- Berkeley and MIT churn out the most technologically diverse
startups; NYU and Penn, by contrast, nurture startups heavily
focused on software and healthcare.
- Harvard and NYU are enjoying the fastest growth rates (31 and
71 percent CAGR, respectively), while growth rates at Penn (-10)
and Berkeley (-8) have slid since 2007, according to the report.