New research by money.co.uk has crowned Google as the most successful company to be started at university.
The search engine sits at the top of the university start-up league table with a current market capitalisation of $1.27 trillion. This is 12.7 million times greater than the $100,000 initial funding the company received in 1998.
In second place with a market cap of $738.57bn is Facebook. This is almost 1.5 million times greater than the $500,000 angel investment the company received in 2004.
Social media app Snapchat has the third largest market cap of $80.16bn, despite being less than 10 years old. This figure is over 165,000 times the $485,000 venture capital investment the company received in 2012.
Despite their current market cap, the initial share prices of three quarters of the companies in the league table were under $50. This includes Facebook ($38), Snapchat ($24), Hewlett-Packard ($16), JustEat Takeaway.com ($25.82) and Dropbox ($21).
In fact, at their initial public offering, shares in a third of the most successful university start-ups were available for under $10. This includes FedEx ($1.02), Sage ($3.37), Avast ($3.41) and Dell ($8.50).
Salman Haqqi, personal finance expert at money.co.uk, commented on the league table: “Tech companies dominate our league table of successful businesses that were started at university. This could be because of the accessibility the sector offers for student entrepreneurs. Considering their current success, the thought of paying just over a dollar for a share in a billion dollar company is unimaginable for many. Yet it underlines the potentially lucrative opportunity that investing in a company early in its history can bring.”