A unicorn company is defined as a privately held startup valued at $1 billion or more — and a degree from the University of Utah gives a graduate the best chance in the nation of founding such an enterprise.
That's the conclusion of a study published by Stanford University Graduate School of Business professor Ilya Strebulaev.
In a study published in June, Strebulaev determined that University of Utah graduates are about 2.3 times as likely to build a unicorn as the average founder. That is a 131 percent increase, and the highest figure of any U.S. school in the research.
Strebulaev' study looked only at founders who raise venture capital (VC) — money that professional investors put into young companies in exchange for an ownership stake.
"This recognition reflects what sets the University of Utah apart: We are a place where world-class research becomes real companies," said UofU President Taylor Randall. "Our students and faculty don't just study big ideas; they build them, and a University of Utah degree gives our graduates one of the strongest chances in the country to launch a company that lasts. We are proud of this distinction and focused on expanding the opportunities behind it."
"Our students and faculty don't just study big ideas; they build them, and a University of Utah degree gives our graduates one of the strongest chances in the country to launch a company that lasts. We are proud of this distinction and focused on expanding the opportunities behind it."
Taylor Randall, UofU PresidentThe ranking measured likelihood, not volume. It reflects how often a school's graduates appear among unicorn founders compared with how often they appear among founders in general, rather than the total number of billion-dollar companies a school produces.
By that measure, the University of Utah finished ahead of a group of well-known research institutions. The University of California, San Francisco followed with 78 percent higher odds; Yale University with 68 percent; and the Massachusetts Institute of Technology with 65 percent, according to the analysis.
Strebulaev is the David S. Lobel Professor of Private Equity and a professor of finance at the Stanford business school, where he founded and directs the Venture Capital Initiative, a research effort focused on venture capital and innovation. He is the co-author of The Venture Mindset, a national bestseller.
In presenting the findings, Strebulaev drew a distinction between producing the most founders and producing the most successful ones. "Stanford and MIT produce the most unicorn founders. But the University of Utah gives you the best odds," he wrote.
Strebulaev limited the ranking to schools tied to at least 10 unicorns, then ranked them by an "odds ratio," a measure of how overrepresented a school's graduates are among unicorn founders.
"The odds ratio adjusts for the fact that leading universities produce more VC-backed founders overall," he wrote. "A high raw count and a high odds ratio are different things — and the schools that lead on one rarely lead on the other."
"Great companies start with great founders, and helping students become those founders is at the heart of what we do at the University of Utah," said Kurt Dirks, dean of the David Eccles School of Business at the UofU. "Through entrepreneurship programs across campus, students can launch a new venture or accelerate their current company. This is part of our goal to fuel Utah's economy."
The Lassonde Entrepreneur Institute is the leading resource for student entrepreneurs at the University of Utah. It provides grants, workshops, mentor opportunities and business incubators, among other resources, including the Lassonde Studios living-learning facility. The institute was founded in 2001 and will mark its 25th anniversary this year.
"At the Lassonde Entrepreneur Institute, entrepreneurship is something students experience, not just study," said Scott Holley, executive director of the Lassonde Entrepreneur Institute. "We give them the space, mentorship, funding and community to bring their ideas to life. Seeing the University of Utah ranked No. 1 in the nation for these odds is a powerful signal to the next generation of founders: This is a place where you can start, build and grow a company."
