New technology businesses are popping up by the second, urged into existence by the hundreds of venture capital firms, the lifeblood of start-ups. In its own small way, Harvard is contributing to this boom, through the investment of its $14.4 billion endowment.

Over the last decade, Harvard has put billions of dollars in venture capital. While money managers for the Harvard Management Company (HMC), the company that invests the endowment, refuses to reveal the exact amount in venture capital, they say their goal is to have 15 percent of the endowment in private equity, the category that is in large part defined by venture capital.

Harvard picks its venture capital firms it uses--third party companies that pool several investors' funds--but then trusts these firms to do its investing. So, Harvard does not actually choose the companies it believes will be the next Microsofts and Intels of the business world.

Last year investors in venture capital, including Harvard, were handsomely rewarded for their venture capital investments. While Harvard's overall endowment growth slowed, the venture capital portion had a return rate of 136 percent.

"Harvard would own most of the countries in the world if these returns continued for 10 years," says Bob Higgins '68, founder and managing general partner of venture capital firm Highland Capital Partners, one that HMC invests in.

According to HMC President Jack R. Meyer, the company does not expect these kinds of returns from venture capital in the future.

"As we look at venture capital going forward, we don't expect triple digit returns," says Meyer. He says HMC expects in the long term, venture capital will return 10 percent above the rate of inflation.

Meyer says that HMC chooses firms that historically have had high rates of return on their investments.