Download This PaperAlumni Networks in Venture Capital Financing
SMU Cox School of Business Research Paper No. 21-17
Journal of Financial and Quantitative Analysis, 0[10.1017/S0022109025102354]
75 Pages Posted: 24 Nov 2021 Last revised: 28 Oct 2025
Date Written: November 24, 2021
Abstract
One-third of deals in the venture capital market involve a founder and investor from the same university. Venture capitalists are more likely to invest in, and place larger bets on, startups with founders from their alma mater. These deals are also more likely to lead to IPOs post-funding. Tests using VC partner turnover confirm a direct link between education ties and funding likelihood. Taken together, our results suggest that university connections facilitate improved deal-making and outcomes, rather than diverting funds toward lower-quality startups.
Keywords: Alumni Networks, Startup Financing, Innovation, IPO, Acquisition
JEL Classification: G24, L26, I23, I24, D82, M13, G32
Suggested Citation: Suggested Citation
Ilya A. Strebulaev
Stanford University - Graduate School of Business ( email )
655 Knight Way
Stanford, CA 94305-5015
United States
HOME PAGE: http://www.gsb.stanford.edu/faculty-research/faculty/ilya-strebulaev
Emmanuel Yimfor
Columbia University - Columbia Business School ( email )
3022 Broadway
New York, NY 10027
United States