Back-Testing the UT Horizon Fund

March 27, 2013,12:36 pm

At the February 2013 board meeting, UT System presented a 10-year back-testing effort of return on investments into UT System startup companies. We evaluated years 2002 through 2012 and discovered that UT could have made investments into 72 companies, an opportunity lost because the UT Horizon Fund did not exist during that period. Those investments would have provided a 54% return on investment, higher than many venture capital funds and endowment investment thresholds.

The reason for that return, we believe, is based on the quality of research and patent technology assets generated out of UT institutions. As of February 2013, there are 154 known active startup companies spun-off out of UT System component institutions. Many of these firms continue to raise funding from the VC and investor communities.

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