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Clarkson University exchanges $150,000 tuition for a stake in your company

BusinessWeek reported today that Clarkson University (@ClarksonUniv) is exchanging the cost of tuition to attend their business school for an equity stake in an entrepreneur’s company.

The University President initiated the idea of the “Young Entrepreneur Award” to strengthen the school’s entrepreneurship program. This is for undergraduate business school, but the idea is still pretty sweet.

“We think we can take young entrepreneurs and make them better entrepreneurs, but we are a private university and we are not inexpensive,” says Timothy Sugrue, the business school dean at Clarkson, a private school in Potsdam, N.Y. “If tuition is what is standing between us doing that, then the idea of trading a portion of a student’s company for tuition and a little help making it stronger seems like a win-win.”

In terms of valuation, BusinessWeek says that the entrepreneur will pass along about 10% of his equity to the school which will vest over time, 1.25% for each semester that the entrepreneur completes. Read the full article at BusinessWeek.

What do you say, MBA programs?


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