‘College dropout’ has become the most coveted startup founder credential

Although iconic founders such as Steve Jobs, Bill Gates and Mark Zuckerberg did not complete their studies, several do studies show that the vast majority of successful startups had founders with a bachelor’s degree or a graduate degree graduated degrees.

Despite this data, the appeal of a dropout founder remains, although VC enthusiasm for the ‘un-degreed’ is far from constant. It’s a phenomenon that goes in and out of fashion, and right now it’s certainly having a moment amid the AI ​​boom.

This trend is especially evident during Y Combinator Demo Days, where founders are increasingly highlighting their dropout status in their one-minute pitches.

“I don’t believe YC formally tracks the status of college dropouts, but anecdotally, in recent batches, I’ve been struck by how many founders emphasize being a college, or even high school, dropout,” says Katie Jacobs Stanton, founder and general partner of Moxxie Ventures. “Being a dropout is a kind of qualification in itself, reflecting a deep belief and commitment to building. I think it’s seen as a very positive thing in the venture ecosystem.”

Although many of the key founders of the AI ​​wave are young, most still chose to stay for the degree. For example, Cursor CEO Michael Truell graduated from MIT, and Cognition co-founder Scott Wu graduated from Harvard.

But despite these examples, a growing number of aspiring entrepreneurs fear that continuing to graduate means missing the most crucial window of the AI ​​building cycle. Some, like Brendan Foody, co-founder of Mercor, have left prestigious schools like Georgetown to pursue their startups.

As Kulveer Taggar, founder of YC-focused venture capital firm Phosphor Capital, told TechCrunch, “There’s just a sense of urgency and maybe FOMO.” There is now a calculation: “I can finish my studies, or I can just start building.”

This fear leads to extreme cases. A professor at an elite university recently described a student who was completing his degree in his final semester. That student was convinced that having a degree would actually affect his chances of getting financing.

While some founders fear that a degree could be a negative signal, Yuri Sagalov, who leads General Catalyst’s startup strategy, suggests that VCs are less fixated on the dropout label, especially for students nearing graduation: “I don’t think I’ve ever had a different feeling about someone who has graduated or not graduated when he or she is in college. [their] fourth year and quit.”

While self-taught tech prodigies can build startups without formal training, Sagalov argues that there is still value in the social network a university creates and in the university’s brand, even if the founder doesn’t receive a degree.

“You get a lot of the social value … because you can emphasize the fact that you participated,” Sagalov said. “Most people will look you up on LinkedIn and they don’t really care if you’re ready or not.”

While many investors now believe that founders can forego a college degree, not all VCs agree that young founders have an advantage in this market.

Wesley Chan, co-founder of FPV Ventures, is reluctant to invest in dropouts because he prioritizes an attribute that most young founders have not yet developed: wisdom. Chan believes that wisdom is usually found among “older founders or people who have a few scars under their belt.”