Investors and entrepreneurs are more apt to connect and work together if they share a collegiate alma mater—especially if their team is winning.
Thursday, February 1, 2024

Looking to find startup funding for your new venture? Try your next college class reunion.

Recent studies by Jon Garfinkel, professor of finance at The University of Iowa Tippie College of Business, have found that investors and entrepreneurs are more apt to connect and work together if they share a collegiate alma mater. Using data from PitchBook and LinkedIn, he found:

  • An investor is 10% more likely to match up with a company from their alma mater than a comparable start-up owned by a founder from a different school.
  • The investment amount is 18% larger on average.
  • Those companies are 33% more likely to lead to an IPO, suggesting the investments are solid.
  • Alumni of elite colleges are more likely to strike deals with each other.

It also found that more deals are consummated when their shared alma mater’s football team is having a good season.