The Truth About MBA-Founded Startups: An Analysis of Unicorn Success
MBA
REPORT
@NextViewVC
NextViewVentures.com
the truth about
MBA-Founded
Startup Unicorns
Startup Unicorns
For better or worse, it’s at times fashionable for tech
personalities to scoff at MBAs as founders.
Perhaps most famously, Guy Kawasaki once said
the value of an MBA to an entrepreneur is
“probably about a negative $250,000.”
For better or worse, it’s at times fashionable for tech
personalities to scoff at MBAs as founders.
For better or worse, it’s at times fashionable for tech
personalities to scoff at MBAs as founders.
Perhaps most famously, Guy Kawasaki once said
the value of an MBA to an entrepreneur is
“probably about a negative $250,000.”
*
* Spoiler alert: It’s “for worse”
Fortunately, there’s been a recent uptick in thoughtful
comments about an MBA’s ability to start and grow a
meaningful tech business.
Fortunately, there’s been a recent uptick in thoughtful
comments about an MBA’s ability to start and grow a
meaningful tech business.
NextView pitched in, too, creating this
HBS-specific report last year:
Along those lines, this year, we’re taking a broader view to
examine the 157 current unicorn startups (reported as $1B+
private valuation).
Along those lines, this year, we’re taking a broader view to
examine the 157 current unicorn startups (reported as $1B+
private valuation).
Although valuations aren’t everything, this is
a readily-accessible metric we can use to
measure the success of a specific cohort of
entrepreneurs. In this case, we looked at
unicorns with at least 1 MBA as a co-founder.
(The following data is based on research completed on January 1, 2016. As
of this writing, 1 unicorn has since sold – Legendary Entertainment.)
Key Insights:
38
38
24%
24%
unicorns, or
have at least 1 MBA founder
Key Insights:
63
63
MBA founders
are found among the 157 unicorns
(meaning several have more than 1 MBA as a co-founder)
Key Insights:
$65 Billion
$65 Billion
MBA-founded unicorns
are valued at about
of the combined $533B valuation of
all unicorns
Key Insights:
The MBA programs with the most unicorn
startups founded by alumni:
(HBS has the largest class size among MBA programs – a factor to consider throughout.)
5
5
Unicorns Founded by MBA Alumni
Unicorns Founded by MBA Alumni
(international)
Key Insight:
Harvard’s larger MBA classes have
produced almost
the total unicorn valuations of
Stanford GSB.
2.5X
2.5X
Total Valuation by MBA Program
per capita basis?
Key Insight:
How about unicorns founded on a
per capita basis?
If we use a weighted average, with HBS at 10,
the “per-MBA-student” average favors Stanford:
12.2 to 10
12.2 to 10
Key Insight:
A few more data points about MBA-
founded unicorns and what we
learned…
Geography Breakdown
Geography Breakdown
10% of unicorn companies are
based in Asia, but they account
for 25% of dollars raised by
MBA-led unicorns.
Sector Breakdown
Sector Breakdown
Highest valuations:
1.
InMobi (HBS)
2.
Mu Sigma (Chicago Booth)
3.
MongoDB (INSEAD)
4.
Red Ventures (HBS, Wharton)
Sector Breakdown
Highest valuations:
1.
Dianping (Wharton)
2.
Delivery Hero (Vienna)
3.
Houzz (Tel Aviv)
4.
GrabTaxi (HBS)
Sector Breakdown
Highest valuations:
1.
Coupang (HBS)
2.
Global Fashion Group (HBS,
INSEAD, Wharton, Booth,
IIM Calcutta)
3.
Blue Apron (HBS)
4.
Honest Co. (UCLA
Anderson)
Key Insight:
In general, startup unicorns are found
in these sectors too, but none are led
by MBA founders:
•
Hardware
•
Security
•
Aerospace/Defense
•
Hardware
•
Security
•
Aerospace/Defense
Key Insight:
Some hypotheses as to why:
•
These capital-intensive startups aren’t as
widely pursued by VCs
•
Speaking very broadly, MBA founders
typically launch less technical companies
In the end, MBA founders must be taken seriously when it
comes to their abilities to execute on big, visionary ideas.
The notion that MBAs are somehow less
qualified or less hungry is an overstatement
at best, uninformed knee-jerk at worst.
In the end, MBA founders must be taken seriously when it
comes to their abilities to execute on big, visionary ideas.
The notion that MBAs are somehow less
qualified or less hungry is an overstatement
at best, uninformed knee-jerk at worst.
For anyone to conclude otherwise would indicate they’re being too
romantic about what successful founders look like and where they
come from – a slippery slope of personal bias to say the least.
In the end, MBA founders must be taken seriously when it
comes to their abilities to execute on big, visionary ideas.
JOIN THOUSANDS IN TECH
on our weekly email about startup traction
with advice, stories, and resources shared by
entrepreneurs from these companies and more:
ADD ME TO THE LIST
(we’ll reply with our most popular resources)
Research by
David Fairbank
HBS
’
16 &
MBA Associate,
NextView
Explore the debate surrounding MBAs as startup founders, with insights on their impact based on a study of 157 unicorn startups. Key findings reveal the value and success of MBAs in the tech business landscape.
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Presentation Transcript
the truth about MBA-Founded MBA REPORT @NextViewVC NextViewVentures.com
For better or worse, its at times fashionable for tech personalities to scoff at MBAs as founders.
For better or worse, its at times fashionable for tech personalities to scoff at MBAs as founders. Perhaps most famously, Guy Kawasaki once said the value of an MBA to an entrepreneur is probably about a negative $250,000.
* For better or worse, it s at times fashionable for tech personalities to scoff at MBAs as founders. Perhaps most famously, Guy Kawasaki once said the value of an MBA to an entrepreneur is probably about a negative $250,000. * Spoiler alert: It s for worse
Fortunately, theres been a recent uptick in thoughtful comments about an MBA s ability to start and grow a meaningful tech business.
Fortunately, theres been a recent uptick in thoughtful comments about an MBA s ability to start and grow a meaningful tech business. NextView pitched in, too, creating this HBS-specific report last year:
Along those lines, this year, were taking a broader view to examine the 157 current unicorn startups (reported as $1B+ private valuation).
Along those lines, this year, were taking a broader view to examine the 157 current unicorn startups (reported as $1B+ private valuation). Although valuations aren t everything, this is a readily-accessible metric we can use to measure the success of a specific cohort of entrepreneurs. In this case, we looked at unicorns with at least 1 MBA as a co-founder. (The following data is based on research completed on January 1, 2016. As of this writing, 1 unicorn has since sold Legendary Entertainment.)
Key Insights: unicorns, or have at least 1 MBA founder
Key Insights: MBA founders are found among the 157 unicorns (meaning several have more than 1 MBA as a co-founder)
Key Insights: MBA-founded unicorns are valued at about of the combined $533B valuation of all unicorns
Key Insights: The MBA programs with the most unicorn startups founded by alumni: (HBS has the largest class size among MBA programs a factor to consider throughout.)
Unicorns Founded by MBA Alumni (international)
Key Insight: Harvard s larger MBA classes have produced almost the total unicorn valuations of Stanford GSB.
Key Insight: How about unicorns founded on a per capita basis? per capita basis? If we use a weighted average, with HBS at 10, the per-MBA-student average favors Stanford:
Key Insight: A few more data points about MBA- founded unicorns and what we learned
Geography Breakdown 10% of unicorn companies are based in Asia, but they account for 25% of dollars raised by MBA-led unicorns.
Sector Breakdown Highest valuations: 1. InMobi (HBS) 2. Mu Sigma (Chicago Booth) 3. MongoDB (INSEAD) 4. Red Ventures (HBS, Wharton)
Sector Breakdown Highest valuations: 1. Dianping (Wharton) 2. Delivery Hero (Vienna) 3. Houzz (Tel Aviv) 4. GrabTaxi (HBS)
Sector Breakdown Highest valuations: 1. Coupang (HBS) 2. Global Fashion Group (HBS, INSEAD, Wharton, Booth, IIM Calcutta) 3. Blue Apron (HBS) 4. Honest Co. (UCLA Anderson)
Key Insight: In general, startup unicorns are found in these sectors too, but none are led by MBA founders:
Key Insight: Some hypotheses as to why: These capital-intensive startups aren t as widely pursued by VCs Speaking very broadly, MBA founders typically launch less technical companies
In the end, MBA founders must be taken seriously when it comes to their abilities to execute on big, visionary ideas.
In the end, MBA founders must be taken seriously when it comes to their abilities to execute on big, visionary ideas. The notion that MBAs are somehow less qualified or less hungry is an overstatement at best, uninformed knee-jerk at worst.
In the end, MBA founders must be taken seriously when it comes to their abilities to execute on big, visionary ideas. The notion that MBAs are somehow less qualified or less hungry is an overstatement at best, uninformed knee-jerk at worst. For anyone to conclude otherwise would indicate they re being too romantic about what successful founders look like and where they come from a slippery slope of personal bias to say the least.
JOIN THOUSANDS IN TECH on our weekly email about startup traction with advice, stories, and resources shared by entrepreneurs from these companies and more: Research by David Fairbank HBS 16 & MBA Associate, NextView (we ll reply with our most popular resources)
