The study by the Rice Alliance for Technology and Entrepreneurship spans the 11-year life of the RBPC, the world's richest and largest business plan competition, which comprises teams of graduate students from throughout the world. The comprehensive and longitudinal study offers insights into the experiential factors that can help entrepreneurs launch a successful business.
Using data on the 354 RBPC graduate-student competition teams from 2001 to 2011, the study found:199 (56 percent) went on to launch their companies after competing at the Rice competition.
"The study shows that university business plan competitions can go beyond simply being an academic exercise or educational experience," said Brad Burke, managing director of the Rice Alliance. "They can serve as a vehicle for building a robust entrepreneurial ecosystem and as a launching pad for new businesses, especially high-tech, high-growth startups."
"The Rice Business Plan Competition's track record is unparalleled in creating new, successful high-tech startups," said Kauffman Foundation Vice President Lesa Mitchell. "The competition provides access to venture capital and other early stage investors, strategic partners, mentors and service providers – not to mention more than $1 million in seed funding and other prizes – all critical resources for successfully launching a new company and creating jobs."
The study showed that as a result of the quality of the competitors and this access to investors, 25 percent of the successful startups from the competition have raised venture capital funding compared with less than 1 percent of startups that typically get venture capital funding. Of the total $460 million in funding raised, 62 percent came from venture funding, 13 percent from angel investors and 13 percent from government grants.
The RBPC results have shown to be a good predictor of a company's success, based on the winners and teams that reached the finals. All of the winners in the RBPC from 2004 to 2011 have been successful, are still in business and have raised more than $107 million in funding (with the exception of one team that decided to pursue other avenues to commercialize its technology). Of all the teams that reached the finals from 2001 to 2011, 56 percent have been successful and have raised more than $269 million in funding.
Teams that compete at the RBPC present their ventures to more than 250 venture capitalists, angel investors, corporate investors, mentors, successful entrepreneurs and other leaders from the business community, where they have a chance to get mentoring, feedback, capital and connections.
Entry into the Rice competition has become more competitive each year, and in 2012, less than 3 percent of the 1,600 applicants were accepted. The states with the largest number of competitors during the first 11 years were Texas, California, Illinois, Massachusetts and Georgia.
The universities with the largest number of teams accepted to compete at the RBPC include Rice University, Massachusetts Institute of Technology, University of Texas at Austin, University of Michigan, Johns Hopkins University, University of Arkansas, Carnegie Mellon University, University of Chicago, Southern Methodist University, University of Illinois at Chicago, Georgia Institute of Technology, Northwestern University, Duke University and Stanford University.
The study shows that the Rice Business Plan Competition provides a model that other organizations can follow to support entrepreneurs who, in return, will create jobs and build economic prosperity in the U.S.
For a complete copy of the study, go to http://www.alliance.rice.edu/uploadedFiles/RBPC/2012_RBPC_ImpactReport.pdf
David Ruth | EurekAlert!
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Researchers at the University of New Hampshire have captured a difficult-to-view singular event involving "magnetic reconnection"--the process by which sparse particles and energy around Earth collide producing a quick but mighty explosion--in the Earth's magnetotail, the magnetic environment that trails behind the planet.
Magnetic reconnection has remained a bit of a mystery to scientists. They know it exists and have documented the effects that the energy explosions can...
Biochips have been developed at TU Wien (Vienna), on which tissue can be produced and examined. This allows supplying the tissue with different substances in a very controlled way.
Cultivating human cells in the Petri dish is not a big challenge today. Producing artificial tissue, however, permeated by fine blood vessels, is a much more...
Faster and secure data communication: This is the goal of a new joint project involving physicists from the University of Würzburg. The German Federal Ministry of Education and Research funds the project with 14.8 million euro.
In our digital world data security and secure communication are becoming more and more important. Quantum communication is a promising approach to achieve...
On Saturday, 10 November 2018, the research icebreaker Polarstern will leave its homeport of Bremerhaven, bound for Cape Town, South Africa.
When choosing materials to make something, trade-offs need to be made between a host of properties, such as thickness, stiffness and weight. Depending on the application in question, finding just the right balance is the difference between success and failure
Now, a team of Penn Engineers has demonstrated a new material they call "nanocardboard," an ultrathin equivalent of corrugated paper cardboard. A square...
09.11.2018 | Event News
06.11.2018 | Event News
23.10.2018 | Event News
16.11.2018 | Health and Medicine
16.11.2018 | Life Sciences
16.11.2018 | Life Sciences