Investing in Alumni: Unleashing the Power of Communities

October 6, 2023
Startup Investing

In the fast-paced world of tech and startups, one key asset often goes unnoticed—alumni networks. These networks, comprising former employees and associates of successful companies, can be treasure troves of innovation and potential. Airbnb, PayPal, Uber, YouTube, Shopify, Lyft, Robinhood, and Meta, among others, have all witnessed the remarkable rise of their alumni. These individuals have gone on to create unicorn startups and achieve IPO success, leaving us to ponder: why don't more companies and communities invest in their alumni?

Unlocking the Potential of Alumni Networks

Let's dive into some eye-opening statistics. Airbnb's alumni have already birthed three unicornstartups, with one of their former team members witnessing their company go public. Meanwhile,Uber has cultivated a network of over 240 startups, including a unicorn, and several successful exits.

Notably, YouTube alumni have founded companies that raised over $1.3 billion, while Shopify's alumni have raised over $266 million. The Lyft alumni network boasts companies that have collectively raised over $2 billion, and Uber alumni-founded companies have raised over $13 billion. ‍As for Meta (formerly Facebook), its alumni have founded companies that have collectively raised over $17 billion. These numbers underscore the immense potential locked within alumni networks.

Airbnb's alumni have founded incredibly successful companies

Why Invest in Alumni?

So, why is it crucial for companies and communities to invest in their alumni? The answer is simple: Alumni networks are fertile grounds for innovation and entrepreneurship. These individuals have already demonstrated their abilities and talents within a specific organization, making them prime candidates for successful entrepreneurship.

By investing in alumni, companies and communities are not just supporting their former members but also fostering a culture of continuous growth and innovation.

The Challenge of Starting a Fund

Despite the clear benefits of investing in alumni, many companies and communities are hesitant totake the plunge. Starting a fund can be daunting, involving legal fees, entity creation, taxes,compliance, and setting up bank accounts. It's a complex and time-consuming process that candeter even the most well-intentioned organizations.

Introducing Power In Numbers (PIN)

This is where Power In Numbers (PIN) comes into play. PIN was created to simplify the process of setting up a fund for companies, communities, and angel networks. It takes care of all the logistical aspects, leaving organizations free to focus on what they do best—investing in and supporting their community founders.

How PIN Differs from Angel Investing

While angel investing is a successful avenue for funding startups, it may not be accessible to everyone. Limited liquidity can make it challenging to get into the best deals, and writing relatively small checks might not provide sufficient diversification. This is where PIN shines.

Setting up a community fund on PIN is not only easy but also the best way to get started. Here are some key differentiators:

Ease of Entry: PIN makes it accessible for groups, especially founders' communities, to invest in each other and startups they care about.

Logistical Support: PIN handles all the legal, tax, and administrative requirements, allowing leaders to focus on facilitating investments.

Community-Powered: PIN leverages the power of community by sourcing 60% of deals from the community itself. Communities on PIN boast an impressive 95%+ win-rate for deals they wish to invest in.

Risk-Free: If a fund doesn't reach its intended target or doesn't align with the organization's goals, PIN ensures that everyone's money is returned in full.

In conclusion, the potential locked within alumni networks is immense, and the numbers from companies like Airbnb, Uber, and others are a testament to that fact. Investing in alumni is not only a sound financial decision but also a way to foster innovation and growth within an organization or community. With platforms like Power In Numbers (PIN) simplifying the process, there has never been a better time to tap into this valuable resource and invest in the future. It's time to recognize that the true power lies in our numbers and the potential of our alumni.

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