The image of the “college dropout” as a coveted startup founder credential has surged in popularity, particularly during the current AI boom, despite evidence showing that most successful startups are led by founders with bachelor’s or advanced degrees. While icons like Steve Jobs, Bill Gates, and Mark Zuckerberg built empires after leaving school, data consistently reveals that the majority of high-performing founders hold formal degrees. Still, the dropout narrative remains powerful—especially in today’s fast-moving tech environment. It’s now a common talking point at Y Combinator Demo Days, where founders increasingly highlight their decision to leave college, grad school, or even high school to pursue their startups. “I don’t believe YC formally tracks dropout status, but anecdotally, in recent batches, I was struck by how many founders emphasize being a dropout,” said Katie Jacobs Stanton, founder and general partner at Moxxie Ventures. “Being a dropout has become a kind of badge of honor—signaling deep conviction, urgency, and commitment to building.” This trend reflects a growing sense of urgency among young entrepreneurs. Many believe that staying in school means missing the critical window of the AI revolution. While prominent AI founders like Michael Truell of Cursor (MIT graduate) and Scott Wu of Cognition (Harvard graduate) did complete their degrees, others are choosing to leave early. Brendan Foody, co-founder of Mercor, dropped out of Georgetown University to focus on his startup, embodying the mindset that time is too valuable to spend in classrooms. Kulveer Taggar, founder of Phosphor Capital, a venture firm focused on YC startups, attributes this shift to FOMO: “There’s just this sense of urgency. I can finish my degree, or I can just start building.” The pressure is so intense that some students are walking away from their degrees in their final semester. One professor at a top-tier university recently described a student who abandoned his diploma, convinced that having a degree would actually hurt his chances of securing funding. Still, not all investors see the dropout label as a positive signal. Yuri Sagalov, who leads General Catalyst’s seed strategy, notes that VCs are often less concerned about whether a founder completed their degree—especially if they’re in their final year. “I don’t think I’ve ever felt any different about someone who graduated or didn’t graduate when they’re in their fourth year and drop out,” he said. Sagalov also points out that even without a diploma, founders gain social and professional value from being associated with a prestigious institution. “You get a lot of the social value… because you can put the fact that you participated,” he explained. “Most people will look you up on LinkedIn and not care as much whether you finished or not.” While many investors now accept that a degree isn’t necessary to build a successful startup, not all agree that young founders have an advantage. Wesley Chan, co-founder of FPV Ventures, remains cautious. He values experience and wisdom—traits he believes most young founders haven’t yet developed. “I prioritize wisdom,” Chan said. “It’s typically found in older founders or people who’ve had a few scars under their belt.”