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VC: Build University Connections

  1. Short Description
    1. Universities are often the nexus of new research, insights and talented people. By connecting with the university community, you can tap into this for dealflow. Or you can catalyze companies that might not exist otherwise. Examples of tactics are:
      1. sponsorships
      2. teaching
      3. formal programs with the tech transfer office
      4. spending time on campus (hosting events or attending)
      5. having the university as an LP.
      6. serving on university committees or boards and/or
      7. having a nearby office.
  2. Benefits
    1. New Markets: younger people may be faster to adopt new technology or culture changes. By living in the future, they can see new markets forming before others. If you want to invest in companies in new markets, this can be a great source.
    2. New Research: the mission of many universities is to create new knowledge. Commercializing these breakthroughs can be lucrative and provide true competitive advantage.
    3. Long-Lasting: As universities are long-lasting institutions, efforts can pay off for a while.
  3. Trade-Offs
    1. University IP: If you are working to commercialize new research, the university may own the intellectual property. The university may take some of the company’s revenue and/or equity. Negotiations can take months.
    2. Limited Capacity: Building deep relationships with universities is hard to scale. If you pick a school that is generating enough startups, that may not be a problem.
    3. Harder for Later Stage: Most of the companies that you source from this strategy will be earlier stage.
  4. Examples
    1. Elm Street Ventures
    2. Ulu Ventures
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