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

Although prominent founders like Steve Jobs, Bill Gates, and Mark Zuckerberg did not finish college, they are numerous studies displays The vast majority of successful startups were founded by bachelor’s degrees graduate grades.

Despite this data, the appeal of the dropout founder remains, although VC enthusiasm for “non-degree-holders” is far from consistent. It’s a phenomenon that comes in and out, and is certainly having a moment amid the AI ​​boom.

This trend is especially evident during Y Combinator Demo Days, where founders increasingly promote their leak status in their one-minute demos.

“I don’t think YC officially tracks dropout, but anecdotally, in recent batches, I’ve been struck by how many founders have highlighted dropout from college, grad school, and even high school,” said Katie Jacobs Stanton, founder and general partner of Moxxie Ventures. “Leakage is a kind of certification in itself, which reflects a deep conviction and commitment to construction. I think it is seen as a very positive thing in the venture ecosystem.”

Although many of the prominent founders of the AI ​​wave are young, most of them still choose to stay on and get a diploma. For example, Michael Trowell, CEO of Cursor, graduated from MIT, and Scott Wu, co-founder of Cognition, graduated from Harvard.

But despite these examples, a growing number of aspiring entrepreneurs fear that staying put until graduation means missing the most important window in the AI-building cycle. Some, like Brendan Foudy, who co-founded Mercur, have dropped out of prestigious schools like Georgetown University to pursue their startups.

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

This fear leads to extreme situations. A professor at an elite university recently described a student who walked away from his degree in his final semester. That student was convinced that getting the diploma would actually hurt his chances of getting funding.

While some founders fear a degree is a negative signal, Yuri Sagalov, who leads seed strategy at General Catalyst, points out that venture capitalists are less focused on the dropout sign, especially for students close to graduation: “I don’t think I felt any different about someone who graduated or didn’t graduate when they were in [their] The fourth year and he dropped out of school.”

Although self-taught tech prodigies can build startups without formal education, Sagalov believes there is still value in the social network and university branding that a university creates, even if the founder doesn’t have a diploma.

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

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

Wesley Chan, co-founder of FPV Ventures, isn’t keen on investing in dropouts because he prioritizes traits that most young founders haven’t yet developed: wisdom. Chan believes that wisdom is usually found in “older founders or people with a couple of scars under their belt.”