By Xoel Cardenas, Sr. Communications Specialist, Office of the Vice President of Research

Utah is known for its innovative spirit. It’s in the state’s history, and at the University of Utah, we follow the lead of innovators past, creating new success stories in education, research, technology and more. 

One area where the U of U has shined the brightest — both historically and currently — is its development of entrepreneurial and startup business success. Recently, the U was recognized and ranked among the best in the country for developing businesses that grow from a startup to the elusive “unicorn.” 

According to a recent study by Stanford Venture Capital Initiative, the University of Utah ranked second in the nation in universities with the highest likelihood of producing unicorn companies. A unicorn is a privately-owned startup business with a worth of more than $1 billion.  

The purpose of the study — conducted by Ilya Strebulaev, founder of the Venture Capital Initiative and a professor of private equity and finance at Stanford University — was to see what the data says about unicorn founders, in particular, the myth of the brilliant college dropout and the reality of founder education patterns and backgrounds. 

The study showed that while stories of college dropouts-turned-billionaires like Bill Gates or Steve Jobs capture the public’s imagination, the data shows unicorn founders are significantly more educated than the general population. 

“(Unicorn founders) are six times more likely to hold a doctoral degree, three times more likely to have a master’s degree, and twice as likely to have completed undergraduate studies compared to the average U.S. person over 25 years old,” according to the study. 

While there are new paths to developing deep expertise nowadays, Strebulaev’s study says formal education remains a strong predictor of unicorn success. 

“The data suggests that building successful companies of the future often benefits from the knowledge, research mindset and specialized networks developed through formal education,” the study states. “The dropout-to-billionaire path, while possible, remains a captivating outlier rather than a reliable template for entrepreneurial success.” 

The U continues to create startup and unicorn success 

The University of Utah’s stellar ranking is just one more example of how our university contributes to the state of Utah’s continued success for startups. In 2022, a study by Strebulaev and the Stanford Venture Capital Initiative showed 1 of every 61 venture capital-backed companies in Utah becomes a unicorn. 

Over 330 companies have launched based on technologies developed at the U, with 23 new technology licenses and four startups in FY2024 alone, according to the U of U’s Technology Licensing Office (TLO).  

Utah ranks No. 1 among U.S. states for innovation capacity and outcomes, according to the latest The Innovation Intelligence Index (II3). A recent report from the Kem C. Gardner Policy Institute and Economic Development Corporation of Utah says the Beehive State has strong “innovation ecosystems” thanks to its higher education institutions, well-trained workforce, collaborative atmosphere, and culture of innovation driven by the culture of this state.  

“Utah is easily one of the best places in the nation for startup companies,” said Troy D’Ambrosio, Vice President for Innovation and former executive director of the Lassonde Entrepreneur Institute. “The state is consistently ranked as one of the top locations to start a business, and there are many reasons for this. One explanation is how willing everyone is here to support entrepreneurs through mentorship, grants, and more. Another reason is the vast number of resources available to entrepreneurs here. Utah has many university programs for entrepreneurs, business resources centers, grants programs, co-workspaces, and a wide variety of other resources.” 

Established in 2001, the Lassonde Entrepreneur Institute is a nationally ranked hub for student entrepreneurship and innovation at the University of Utah and an interdisciplinary division of the David Eccles School of Business.  

The institute provides opportunities for thousands of students to learn about entrepreneurship and innovation. U.S. News and Princeton Review have ranked the Lassonde Entrepreneur Institute among the top 10 best programs in the country for entrepreneurship. 

Innovative U programs lead to entrepreneur success 

What makes the University of Utah the best choice for anyone looking for the best route to launch their startup? D’Ambrosio says it’s due to the many innovative programs the U provides to entrepreneurs and the success they have achieved. 

“The Master of Business Creation is a great example of the programs at the U,” he said. “It is a one-of-a-kind program where entrepreneurs grow their business while also earning a master’s degree with help from one-on-one mentors, applied curriculum, marketing support, and access to business grants. No other university offers a program like it.” 

The journey is different for each startup to go from idea to launch. Times change and so has the way to launch a startup, so evolving with the times is important. 

“What it means to be an entrepreneur is always changing,” said D’Ambrosio. “The resources needed and the types of opportunities worth pursuing change frequently. A major change has been the amount of time it takes to start a company has been shortened dramatically. You can now launch a business idea and start selling something in a few hours. The Lassonde Entrepreneur Institute supports this changing landscape by always changing our programs and providing resources that are available all year long, whenever entrepreneurs need them.” 

D’Ambrosio says the Lassonde Entrepreneur Institute supports the University of Utah’s goal of becoming an innovation leader by focusing on student ideas and entrepreneurial ambitions.  

“We focus on students who are pursuing business or product ideas. We surround them with everything they need. Students get a life-changing experience, apply what they are learning, and sometimes also achieve great financial success,” he said. 

When asked what he would tell the public about the bright future of U of U’s continued entrepreneurial success, D’Ambrosio said everyone is welcome to get involved.  

“We are always looking for mentors, supporters, new students to join our programs, alumni to reconnect with, and startups who could benefit from our programs,” he said. “We encourage you to learn more, sign up, and attend our many events throughout the year.” 

To learn more about Lassonde Entrepreneur Institute, click here.