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

Although iconic founders like Steve Jobs, Bill Gates and Mark Zuckerberg did not finish college, several studies show that the vast majority of successful startups had founders with a bachelor’s degree or graduate degrees.

Despite this data, the appeal of a dropout founder persists, although VC enthusiasm for the “non-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 particularly evident during Y Combinator’s demo days, where founders increasingly tout their abandoned status in their one-minute pitches.

“I don’t think YC formally tracks attrition status, but anecdotally, in recent batches, I’ve been surprised how many founders highlight having dropped out of college, grad school, and even high school,” said Katie Jacobs Stanton, founder and general partner at Moxxie Ventures. “Being a dropout is kind of a credential in itself, reflecting a deep conviction and commitment to building. I think it’s perceived as a pretty positive thing in the venture ecosystem.”

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

Yet despite these examples, a growing number of aspiring entrepreneurs fear that staying to graduate means missing the most critical window in the AI ​​build cycle. Some, like Mercor co-founder Brendan Foody, have dropped out of prestigious schools like Georgetown to pursue their startups.

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

This fear is leading to extreme cases. A professor at an elite university recently described a student who dropped out in his final semester. That student was convinced that having a diploma would actually hurt his chances of getting funding.

While some founders fear that a diploma could be a negative signal, Yuri Sagalov, who heads General Catalyst’s seed strategy, suggests that VCs are less obsessed with the dropout label, especially for students about to graduate: “I don’t think I’ve ever felt differently about someone who graduated or didn’t graduate when they were in college.” [their] fourth year and abandonment.”

Although self-taught technological prodigies can create new companies without a formal education, Sagalov maintains that there is still value in the social network that a university creates and in the university’s brand, even if the founder does not receive a diploma.

“You get a lot of the social value … because you can put the fact that you participated,” Sagalov said. “Most people will look you up on LinkedIn and not care as much if you’re done or not.”

While many investors now believe that 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 less willing to invest in dropouts because he prioritizes a trait that most young founders haven’t yet developed: wisdom. Chan believes that wisdom is typically found in “older founders or people who have a couple of scars under their belt.”