Although famous founders like Steve Jobs, Bill Gates, and Mark Zuckerberg famously didn’t finish college, more than one Studies show That the majority of successful startups had bachelor founders or Graduate Degree

Despite this figure, the appeal of the dropout founder remains, although the vice-chancellor’s enthusiasm for the ‘non-degree’ is not consistent. It’s a trend that cycles in and out of fashion, and is definitely having a moment right now amid the AI ​​boom.

This trend is especially evident during Y Combinator demo days, where founders are increasingly contesting their dropout status in their one-minute pitches.

“I’m not sure YC officially tracks dropout status but, in recent batches, I’ve been surprised by how many founders highlighted being college, grad school, and even high school dropouts,” said Katie Jacobs-Stanton, founder and general partner at Moxy Ventures. “Being a dropout is a kind of credential in itself, reflecting a deep belief and commitment to building. I think that’s seen as quite a positive in the venture ecosystem.”

Although many of AI Wave’s top founders are young, most still choose to stay in the diploma. For example, Cursor CEO Michael Trowell graduated from MIT, and Cognition co-founder Scott Wu graduated from Harvard.

Yet despite these examples, a growing number of aspiring entrepreneurs fear that sticking with graduates means missing a critical window in the AI ​​building cycle. Some, like Brandon Foddy, who co-founded Mercure, have famously dropped out of prestigious schools like Georgetown to pursue their startups.

As Colver Taggar, founder of YC-based venture firm Phosphor Capital, told TechCrunch: “There’s this sense of urgency and maybe FMO.” Now there’s a calculation: “I can finish my degree, or I can just start building.”

This fear leads to extreme cases. A professor at Elliott University recently described a student in his last semester falling away from his degree. This student believed that having a diploma would hurt his financial aid prospects.

Although some founders fear that a diploma can be a negative signal, Yuri Sagalov, who leads the seed strategy of General Catalyst, reveals that VCS is less fixated on the dropout label, especially for graduate students: “I don’t think I’ve ever felt anything different about when I graduated or didn’t graduate. [their] Fourth year and drop out. “

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

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

Although many investors now believe that founders can work before a university degree, not all VCSs agree that young founders dominate this market.

Wesley Chen, co-founder of FPV Ventures, isn’t so eager to invest in dropouts because he prefers a trait that most young founders haven’t yet developed: wisdom. Chen believes that wisdom is usually found in “old founders or people with a couple of scars under their belt.”