Should universities invest directly in start-ups founded by their faculty and students? The latest CEFS research effort by Maximilian Kremer, Prof. Dr. Dr. Ann-Kristin Achleitner, and Prof. Dr. Reiner Braun addresses this question and has been featured in the renown periodical Institutional Investor. In the paper, the authors find that from a commercial standpoint, VC direct investments in university-affiliated portfolio companies are an elusive promise that rarely pay off financially and have a significantly lower likelihood of a successful outcome than direct investments in unaffiliated portfolio companies.

Read the full article at: https://www.institutionalinvestor.com/article/b1x8fgk4svmtg5/Want-to-Outperform-in-VC-Don-t-Invest-in-Alumni

An electronic copy of the joint research paper is available on SSRN:  https://dx.doi.org/10.2139/ssrn.4016443