Although iconic founders like Steve Jobs, Bill Gates and Mark Zuckerberg did not complete their education, several studies to show that the vast majority of successful startups had founders with a bachelor’s degree or diploma degrees.
Despite this data, the lure of a dropout founder persists, although venture capital’s enthusiasm for “non-graduates” is far from constant. It’s a phenomenon that comes in and out of fashion, and right now it’s certainly having a moment amid the AI boom.
This trend is particularly evident during Y Combinator Demonstration dayswhere founders increasingly tout their dropout status in their one-minute pitches.
“I don’t believe YC officially tracks dropout status, but, anecdotally, over the last few batches I’ve been struck by the number of founders who highlight dropping out of college, graduate school, and even high school,” said Katie Jacobs Stanton, founder and general partner. by Moxxie Ventures. “Being a dropout is a kind of degree in itself, reflecting a deep conviction and a commitment to building. I think it’s seen as something quite positive in the venture capital ecosystem.”
Although many of the leading founders of the AI wave are young, most nevertheless chose to stay to earn a degree. For example, Cursor CEO Michael Truell is an MIT graduate, and Cognition co-founder Scott Wu is a Harvard graduate.
Yet despite these examples, a growing number of aspiring entrepreneurs fear that staying until they graduate means missing the most critical window in the AI development cycle. Some, like Mercor co-founder Brendan Foody, dropped out of prestigious schools like Georgetown to pursue startups.
As Kulveer Taggar, founder of YC-focused venture capital firm Phosphor Capital, told TechCrunch: “There’s just this sense of urgency and maybe FOMO.” There is currently a calculation: “I can finish my studies, or I can just start building. »
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This fear leads to extreme cases. A professor at an elite university recently described a student who dropped out of his degree during his final semester. This student was convinced that having a degree would hurt his chances of getting funding.
While some founders worry that a degree can be a negative signal, Yuri Sagalov, who leads General Catalyst’s seed strategy, suggests that venture capital firms are less obsessed with the dropout label, especially for students about to graduate: “I don’t think I’ve ever felt any different about someone who graduated or didn’t graduate when they’re in their fourth year and they give up. »
Even though self-taught tech prodigies can create startups without formal education, Sagalov says the social network created by a university and the university’s brand still have value, even if the founder doesn’t receive a degree.
“You get a lot of the social value … because you can highlight the fact that you participated,” Sagalov said. “Most people will look you up on LinkedIn and not really care if you’re done or not.”
While many investors now believe founders can forgo a college degree, not all venture capitalists agree that young founders have an advantage in this market.
Wesley Chan, co-founder of FPV Ventures, is not as eager to invest in dropouts because he prioritizes a trait that most young founders have not yet developed: wisdom. Chan believes wisdom is usually found in “older founders or people who have a few scars under their belt.”