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Re:University of Waterloo Students Win Facebook's Hackathon by srlake on Tuesday December 04, 2012 @02:44PM (#4872860)
This ties into #1 and important to also mention:

Undergraduate students also own all of their own IP. If you want to commercialize something you've worked on in school, you don't even need to deal with a tech transfer office: you just do it.

Re:University of Waterloo Students Win Facebook's Hackathon by kymchiho on Tuesday December 04, 2012 @04:44PM (#4873425)
Huge incentive. More time to focus on the idea, less time spend on how to protect it.
Re:University of Waterloo Students Win Facebook's Hackathon by srlake on Tuesday December 04, 2012 @05:40PM (#4873734)
and less worries from investors if you are commercializing something based off of work done in university. No worry that in a couple years when things are taking off the university is going to come back looking for their cut.
Re:University of Waterloo Students Win Facebook's Hackathon by pjacobson on Wednesday December 05, 2012 @03:39AM (#4875458)
Couldn't agree more. Plus, UW has an awesome startup culture!