TechCrunch Startup News ‘College dropout’ has become the most coveted startup founder credential
Jan 1, 2026
The allure of being a dropout is back, especially for startup founders pitching at Y Combinator. Despite data showing most successful entrepreneurs have degrees, many are now highlighting their dropout status. Fear of missing out on the AI boom is leading students to leave school early, with some even withdrawing just before graduation. Interestingly, VCs often see value in near-graduation dropouts for their networks. Meanwhile, some investors still prefer the wisdom of older founders over the youthful zeal of those who left college.
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Dropout Status As A Startup Credential
- The 'college dropout' label has resurfaced as a startup credential during the AI boom.
- Dropout status signals conviction and willingness to prioritize building over formal education.
Examples Of Graduates And Dropouts
- Many leading AI founders still completed degrees, like Cursor's Michael Truel and Cognition's Scott Wu.
- Yet some founders, such as Brendan Foodie, left prestigious schools like Georgetown to build startups full-time.
FOMO Driving Late Degree Dropouts
- Fear of missing the AI window drives students to leave school even late in their degrees.
- Some believe a diploma could hurt funding chances, prompting extreme departures from university.