According to Sieva, “Over the past ten years, the top three business schools have averaged one home run startup annually (i.e., valuation greater than $500 million). The close allegiance between Wall Street and top business schools facilitates MBA entrepreneurs’ fundraising efforts, especially for consumer-oriented companies which can require outlandish amounts of capital to reach critical mass. These highly-capitalized MBA startups are 24% more likely to reach a $100M+ valuation, compared to the Silicon Valley control group of non-MBA led companies. Minimal Science / Technology – Other than the technology associated with e-commerce, most successful MBA startups do not rely on technological innovations or fundamental, scientific discoveries to achieve a competitive advantage. Note that the MBA Fund’s data considers a company as “MBA founded,” even if only one of its founders earned an MBA.

Source: Forbes September 17, 2018 17:25 UTC