The traditional image of a well-educated entrepreneur is increasingly being replaced by that of a college dropout, with many believing that real-world experience often trumps academic credentials. This growing trend begs the critical question of what really makes an entrepreneur successful.
Wesley Chan, co-founder of FPV Ventures, emphasizes the importance of wisdom in founders. He asserts that this trait is often found in “older founders or people who have a couple of scars under their belt.” Chan’s point reinforces the idea that although education is critical, nothing can compare to life experiences that teach priceless lessons, cultivating the most effective leaders.
Contrary to the dropout trend, multiple studies reveal that a significant majority of successful startups are founded by individuals with bachelor’s or graduate degrees. Cursor’s CEO, Michael Truell, is one such success story. He is an alumnus of the celebrated Massachusetts Institute of Technology (MIT). Yet another example is Scott Wu, co-founder of Cognition—educated at Harvard.
This new openness towards different educational backgrounds is really taking hold with venture capitalists. Marina Temkin, venture capital and startups reporter at TechCrunch, has noticed a new pattern among entrepreneurs. A lot of them love to highlight their dropout status on pitching days. She states, “I don’t believe YC formally tracks dropout status but, anecdotally, in recent batches, I was struck by how many founders highlight being a dropout from college, grad school, and even high school.”
Katie Jacobs Stanton, founder and general partner of Moxxie Ventures, on the perks of being a dropout. She points out the positive, transformative connotation that accompanies it. She continues, “Being a dropout is a special credential. It demonstrates a radical belief and a radical dedication to construction. I think it’s still seen as a really, really good thing in the venture ecosystem.”
This transition doesn’t mean that education is losing its importance. Yuri Sagalov is General Catalyst’s managing director, head of Seed Strategy. He argues that while VCs may be less concerned with the dropout badge—especially in the case of near-graduates—universities provide significant social capital and brand value. “You get a lot of the social value… because you can put the fact that you participated,” he explains.
Kulveer Taggar, founder of the YC-focused venture firm Phosphor Capital, encapsulates the dilemma many young entrepreneurs face: “I can finish my degree, or I can just start building.” Then on top of that, he argues, all of these would-be founders are experiencing an unnecessary sense of urgency. “There’s just this sense of urgency and maybe FOMO,” he notes, referring to the fear of missing out on opportunities in the fast-paced startup world.
It’s evident that the combination of traditional education and hands-on experience are both critical factors in developing the entrepreneurs of the future. Everyone loves a story about the dropout founder, and that’s what’s popular right now. At the same time, everyone understands the irreplaceable benefits that a real education provides.
