Univ. of Michigan To Invest In Startup Firms

Ann McClure's picture

In a move signaling its growing success with putting research into the marketplace, the University of Michigan plans to invest up to $25 million from its endowment fund in its own startup businesses.

The startup investment is a first for U-M and rare among universities nationwide, officials said.

The decision was made after the university evaluated its history with research that led to startup companies and concluded it would get at least a 10 percent return by investing some of its $7.8 billion endowment funds.

"We believe in the work of our researchers, and we believe in delivering strong returns on our endowment," said President Mary Sue Coleman, who announced the program Wednesday during her annual campus address.

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