VCs and universities: Collaboration benefits us all

What came first, the university or the VC? You probably know that universities pre-date concepts like accelerators and smart money. Fatima al-Fihriya founded the University of Al-Karaouine in Morocco in 859 CE, a first for the world. Oxford University was founded shortly after in 1096. Since their introduction, universities have produced society’s visionaries. Venture capital firms should celebrate universities for their impact on the startup world–collaboration is critical.

To drop out, or not to drop out: An essential question for VCs

Today, some believe a university education and founding a successful startup are worlds apart. People admire those that shunned the academic world to run their businesses. They’re seen as brave for committing themselves to their fledgling company. Think Steve Jobs or Bill Gates, or perhaps more infamously, Elizabeth Holmes. Dropping out of school is one way to pursue a world-changing idea. But it’s not always something celebrated by potential investors. 

Venture capital firms weigh experience and education in their due diligence processes. They want to invest in founders that, simply speaking, know their stuff. A university degree is more than a piece of paper to them. It represents scientific prowess, established industry connections, and the ability to perform in a high-pressure setting. While we can view dropping out as a sign of dedication, it’s also a potential risk. And as my colleague and LongeVC co-founder Ilya Suharenko pointed out in his article, startup risk management is essential.

The VC-university relationship extends beyond a founder’s background. Universities also function as a sort of accelerator. Two out of four founders of the “first” VC, American Research and Development Corporation, were university presidents or professors. You may have heard of their schools–Harvard and MIT. They knew, and we know, that universities produce investment-worthy ideas. Unsurprisingly, modern VCs still look to university spinouts for promising investments. I’ll explore two examples below. 

Turn Biotechnologies

Turn Biotechnologies is a Stanford University spinout developing mRNA medicines for cell reprogramming. In simple terms, it will reverse aging in our cells. Its co-founders, Sergio Ruiz and Vittorio Sebastiano , have degrees from Stanford, the University of Pavia, and more. 

LongeVC invested in Turn Bio for its powerful rejuvenation potential. Cellular therapeutics are a pillar of longevity science. Because Turn Bio is a spinout, our team knew they had the scientific validation needed to succeed. 

Freedom Biosciences

Dina Burkitbayeva co-founded Freedom Biosciences with Dr. John Krystal in 2021. They emerged from stealth with an incredible $10.5 million seed round. You might recognize Dr. Krystal’s name. He chairs Yale University’s Psychology Department and helped discover ketamine's mental health effects. Freedom Bio is delivering next-gen treatments using ketamine and other psychoactive substances.

Its team works with Yale to produce scientifically sound and market-ready products. Their work will offer a new resource to manage treatment-resistant conditions. 

Collaboration starts early

VCs should pay attention to universities even before the spinout stage. Tomorrow’s life-changing ideas are in today’s student laboratories. That’s why organizations like the Longevity Science Foundation (LSF) are so important. Led by nonprofit powerhouse Lisa Ireland , the LSF funds early-stage research on a longer and healthier human lifespan. The Foundation supports revolutionary ideas before they are eligible for traditional funding. 

The LSF announced its partnership with King's College London (KCL) in March. KCL is one of the oldest and most prestigious universities worldwide. Richard Siow leads its program Ageing Research at King's College London (ARK-AI) . ARK’s research areas include longevity policy, healthy brain aging, AI and longevity, elderly care, biological aging, and more. They approach the impacts of aging through science and society. 

The LSF and ARK’s partnership is monumental for the industry. Grant funding is highly competitive and often lacks transparency. More collaboration is needed to ensure all deserving individuals receive vital support. To drive longevity transformation, universities and funding sources should work as a team. Our lifespans depend on it. 

If you are a university student, I assure you that the VC world cares about your work. We recognize that every successful startup was once an individual with a plan. While VCs have a return on investment in mind, they also aim to uplift their industries. Working closely with universities and early-stage funding groups makes this possible. If you are a student or founder in the longevity space eager to advance your work, I would be more than happy to connect you with LongeVC or the Longevity Science Foundation . Leave me a comment or reach out via the email on my page.