mary thompson looks at alumni angels giving wings to new businesses. >> reporter: for students, college is a big investment. for alumni, college may be the place to find them. >> if you go to college campuses nowadays, it is remarkable to see the level of entrepreneur activity there. >> reporter: he's a proud graduate of the university of wisconsin and founder of silicon valley badgers. it's a growing number of alumni groups putting money in companies founded by students. the common college experience, a selling point for investors. >> investors generally like to invest in people that are maybe one or two degrees away from them. automatically there is this bond and loyalty that develops, which is essential for any start up. >> reporter: they estimate there are about 50 angel alumni group from schools like harvard, marquetmarc market and more. one of those schools, bailor university, graduate david grubs turning to the baylor network. >> we're one of three selected at the angel breakfast and after the presentation we had about six weeks of due diligence where they would go through and in

angels giving wings to new business. >> invest in what you know. a growing numbers of alumnig just that, putting money in of their alma maters. this man is founder of the silicon valley badgers and sometimes funding wisconsin student startups. >> automatically there is a band and loyalty which kind of develops which is essential for any startup because most startups end up having near death experiences. you want tight teams together. >> the angel capital corporation estimating about 50 angel alumni groups exist from schools including harvard, march kwet and the university of mississippi. schools with a strong sense of spirit and entrepreneurial, computer, math and science programs. bayler university is one of them. >> we are one of four kpos selected to actually present at their angel breakfast. after the presentation we had six weeks of due diligence where they had to go through and interview us and try to poke holes in the business and makd sure we will a viable investment. >> allowing small and medium size businesses to set up e-commerce sites in a few minutes. preferred s

alumni networks to help provide student loans at lower interest rates. while they're focusing an narrow group of students for now it's an idea that deserves wider attention. >> reporter: happy hour in los angeles is not just fun and games. events like these are essential to a new type of loan that matches up university aloo univo students. >> i was aible to bring my loans down from 8.5% to 5.5%. >> we care about the school to invest in a fund. you create this social contract. >> reporter: launched in 2011 with 100 student pilot program. today the firm loaned $140 million-dollars to nearly 2,000 students at 100 schools. as a graduate from a leading mba program. she's the low risk pwro reus -br that they're interested in. >> for students in art in a little known university are not going to be getting these loans. >> we decided to start with a group of students who are studying in a particular field where earnings potential are quite high and defaults have been quite low. >> reporter: they began their lending program in pennsylvania. this year it expanded to 20 different nba programs. mostly refinanced loans at lower rates to a smaller portion of new loans as well. they also offer financial liter