Tuesday, July 3, 2012

MBA Startups Find Alumni Angels With Money to Burn

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MBA Express

Jul 3, 2012

This Week's Top Story

This Week's Top Story - MBA Startups Find Alumni Angels With Money to Burn

MBA Startups Find Alumni Angels With Money to Burn

Increasingly B-school entrepreneurs are finding money for their startup ideas among the ranks of fellow alumni

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This week in MBA Express

Dear Reader:

Once upon a time, business school graduates would hear from the alumni office at most once a year, with the money raised typically going toward the endowment, a new building or some other big improvement. But lately, it seems, they're being asked to give and give.and give some more. UCLA Anderson alumni have pledged $19 million to the full-time MBA program in anticipation of the time when (and if) it's permitted to begin forgoing state aid. In Europe, alumni provide loans for students who might otherwise have a tough time obtaining financing.

Now, as Alison Damast reports, alumni are being asked-and willingly agreeing-to provide seed money for startups being launched by students at the schools that gave them a start in life. The willingness of alumni to give to all these worthy causes speaks volumes about what makes these people tick, but also about the value of their degrees. After all, it's easier to contribute to worthy causes (or invest in people and their ideas) when you've achieved a degree of success in your career. Still, generosity has its limits, and there may be a point of diminishing returns. For now, though, let's applaud the altruism, and hope it continues.

Louis Lavelle, Business Schools Editor, Bloomberg Businessweek

Louis Lavelle

Louis Lavelle
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