Silicon Valley's 'youthquake': In the age of AI, founders aren't waiting to grow up

Young founders in Silicon Valley's 'Youthquake' aren't waiting to grow up.Christie Hemm Klok for BIIt's the golden age of AI, and there's a new gospel in Silicon Valley: Building a startup isn't just for the chosen few. It's the new rite of passage into adulthood.Young founders have long been icons. Bill Gates, Steve Jobs, Mark Zuckerberg, and others all bailed on school in their teens and 20s to build their tech empires, inspiring Gen Z founders to do the same.But fueled by AI hype, the ease of vibe coding, and a sense that the clock is ticking, a handful of teens and twentysomethings are building startups instead of taking the well-trodden path of a college education or a Big Tech job."In all of human history, young people have been ambitious and wanting to make something of themselves in their early 20s," Roy Lee, 21, told Business Insider. Lee was famously kicked out of Columbia and then cofounded Cluely, an AI assistant to help users "cheat on everything." The startup raised $15 million in a Series A funding round led by Andreessen Horowitz, or A16z, in June."I consider this the same as people who would sail the ocean with a 20% chance of survival for the chance of glory and changing the world meaningfully," Lee added.Venture capitalists at A16z declared right now "the best time in a decade for dropouts and recent graduates to start a company."Inexperience meets AIIn 2022, 10% of startup founders in the mentorship program Y Combinator were in their early 20s. Two years later, 30% of Y Combinator's founders were college students or recent graduates, according to an X post from a partner at the firm.Marvin von HagenChristie Hemm Klok for Business InsiderWhen Marvin von Hagen, 25, who cofounded AI agent startup the Interaction Company of California, joined startup mentorship programs, he thought he was the oldest person in the room. Though von Hagen graduated from university in Germany, he wonders if the ease of learning with AI has cheapened college degrees: "The barrier to doing something has gotten lower and lower," Hagen said. "You can learn about any topic in the world much more quickly because you can ask these language models to teach them to you."Before AI posed a threat to early-career tech jobs, the post-pandemic tech downturn of 2022, which saw a spate of tech layoffs that has continued on a rolling basis, put young people off the idea of finding stability in conventional career paths in tech."It is pretty clear to me that if you want a stable future, the worst thing you can do is go work at a Big Tech company that's laying off people by the masses," Lee said. "What I'm doing is probably the least risky thing that anybody could ever do. When the tectonic plates of society are shifting, that's the time to take a big risk."I think college is dead.Rahul Sonwalkar, 28Jake Adler, 21, whose startup Pilgrim is developing a suite of biotech products, including a wound-healing solution, said that AI tools like ChatGPT helped him learn about graduate school-level topics like high-energy physics. While young founders have existed for decades, Adler thinks advancements in AI have encouraged more teens and twentysomethings to build complicated hardware as opposed to crypto or social media startups.Jake AdlerChristie Hemm Klok for Business InsiderAdler graduated from high school in 2022 and isn't planning on attending college."You have a Ph.D. in your pocket," he said.Betting on young peopleY Combinator and other programs like it have long fueled the Valley's next crop of talent with cash and cachet. At Dorm Room Fund, which spun out of First Round Capital in 2012, college students invest in startups founded by people their age. The Thiel Fellowship, which launched in 2011, awards $200,000 to "young people who want to build new things instead of sitting in a classroom," its website says. And Z Fellows gives early-stage founders $10,000 and a week of mentorship.Its founder, Cory Levy, hosted a graduation earlier this summer for entrepeneurs who never finished school. Founders eventually move on from these programs and start raising cash from more traditional venture capitalists.These mentorship initiatives, which have produced companies like Figma and AirBnB, have slowly reduced skepticism in backing those who haven't yet started their careers. Despite teens and twentysomethings' lack of work experience, many investors seem unfazed by their ages.Thomas Laffont, a cofounder of investment firm Coatue Management, doesn't think about age and instead looks for lean teams. "What if size actually has reverse scale effects?" Laffont told Business Insider. "The bigger you are, the harder it is to adopt new technologies."Lee, the Cluely cofounder, said venture capitalists didn't ask how young he was while he was fundraising. Lee also doesn't consider the age of his early employees to be a factor in his recruitment process, instead focusing on culture fit, though most of Cluely's employees on LinkedIn are college-aged. At the startup's office in late June, red Solo cups were strewn around, nestled between desks.Michael Gibson and Danielle Strachman, two investors who built the Thiel Fellowship, have long bet on young founders. The duo cofounded venture firm 1517 in 2015 to back those "particularly skeptical of institutions," Strachman said. About 85% of their portfolio is young, non-degreed founders, Gibson said, adding that "universities are failing" and that AI tools have only "accelerated the autodidacts."Gibson received a bachelor's degree from New York University, a master's from the University of Chicago, and also studied Philosophy at the University of Oxford, according to his LinkedIn. Strachman graduated from Simmons College.To Gibson and the founders his firm speaks with, traditional postgrad jobs "aren't as exciting as they used to be," he said. "Management consulting, investment banking — it just seems so normy now."'Disillusioned' with collegeYoung founders inevitably face a tough trade off: their company or their education. Some who attended college a few years ago have a blunt assessment: "I think college is dead," Rahul Sonwalkar, 28, said. Sonwalkar is the founder and CEO of Julius AI and graduated from the University of Texas at Dallas in 2019 — a year early because he "couldn't wait to come to San Francisco."Rahul SonwalkarChristie Hemm Klok for Business InsiderOn average, graduating from college improves earning potential. The percent difference in earnings between college and high school graduates, known as the college wage premium, has floated roughly between 70% to 80% over the last decade, according to the Federal Reserve Bank of San Francisco. As economist David Deming previously told Business Insider, the return on an investment in college — both the time taken to attend and the price of tuition — is greater than the annual returns of investing in the stock market, buying a home, and starting a business.Plus, founding a company doesn't always lead to high earnings. Over two-thirds of startups never turn a profit, Harvard Business Review reported in 2021.Sonwalkar said that the social experience of college is an upside of attending. Investor and YCombinator cofounder Paul Graham seemed to echo this."Don't drop out of college to start or work for a startup," Graham wrote on X in July. "There will be other (and probably better) startup opportunities, but you can't get your college years back."To Graham and other outspoken founders and investors, college isn't about readying oneself for professional success: "It's to improve your mind," Graham replied to his initial X post.The replies were full of clapbacks. Khosla Ventures managing director Keith Rabois had some thoughts: "Every Thiel Fellow would probably disagree."Read the original article on Business Insider

Comments

Business News

California FAIR Plan continues denying smoke damage claims despite court loss and regulatory action

LA Times

I spent my 50th birthday swimming around Greek islands with friends. Even though we were the slowest, it built my confidence.

about 11 hours ago

insider

A Gen Zer from the Philippines studied overseas, hustled through side gigs, and built a tiny house she now runs as an Airbnb

about 11 hours ago

Carlos Alcaraz wins his 2nd U.S. Open at match delayed by Trump's attendance

NPR

Comments

Similar News

Murder at Burning Man turns Silicon Valley’s desert playground into a crime scene

One of the most in-demand skills in Silicon Valley is a software program released 40 years ago

Less traffic and easier restaurant reservations: Life in Silicon Valley slows down as techies attend Burning Man

The Silicon Valley leaders who have experimented with psychedelics

Immigrants with 'zero' privilege are among Silicon Valley's top talent, says billionaire tech investor David Friedberg

Former Meta executive Nick Clegg calls Silicon Valley 'cloyingly conformist'

Kumail Nanjiani describes meeting Elon Musk and Mark Zuckerberg &mdash; and why Musk 'didn't like' the show 'Silicon Valley'

‘Silicon Valley’ star Kumail Nanjiani says Elon Musk hated the HBO comedy’s depiction of parties

Silicon Valley parents spend thousands to screen embryos in search of ‘baby geniuses’: report

Why Silicon Valley's young founders are saying no to alcohol

Business News

California FAIR Plan continues denying smoke damage claims despite court loss and regulatory action

Before logo fiasco, Cracker Barrel had quietly started serving day-old biscuits, microwaved meatloaf: employees

Homebuyer shortage forces many sellers to lower prices, walk away as slump drags on

Norway votes in a closely fought election with the future of a wealth tax in focus

How to support your child through university without risking your financial future

India-Pakistan Is Cricket’s Hottest Ticket As Demand Heightens At Asia Cup

Career Grand Slam On Carlos Alcaraz’s Mind After U.S. Open Triumph

Utah Enacts Law To Regulate Use Of AI For Mental Health That Has Helpful Judiciousness

The smart business guide

The Ultimate Dubai And Abu Dhabi Itinerary

San Diego Wave FC Retires Alex Morgan’s Iconic Jersey Number

The most powerful Porsche 911 EVER! New Turbo S arrives with 700hp - here's how much it costs

Opinion: Norwegian election to be better than a Hitchcock thriller

The best and worst looks at the 2025 MTV VMAs

Why Paul Graham advises against founding a startup in high school

FTSE 100 Live 08 September: Index set for a robust start, oil prices rise

London needs the old-school might of Lloyd’s more than ever

South Korea will bring home 300 workers detained in massive Hyundai plant raid in Georgia

Asian shares rise after Japan's prime minister resigns

Japan's economy grew at faster rate in fiscal Q1 than initially thought

China's export growth slows in August as US tariffs and trade tensions bite

Max Scherzer Acknowledges Pitch Tipping In Intriguing Blue Jays-Yankees Plot Twist

‘SNL50’ Leads Night 2 Of Creative Arts Emmys; ‘The Traitors’ And ‘Pee-Wee As Himself’ Standouts

Economic crisis in France goes beyond its overspending problem

Beware these savings blunders that could cost you dear

Has AI worked out my inheritance tax correctly? STEVE WEBB replies

Putin's energy fix for drone-hit Russia: Dig up more coal

Blackpink's Rosé just notched an unprecedented win for K-pop at the VMAs

Lisa’s ‘Born Again’ With Doja Cat And RAYE Wins MTV VMA For Best K-Pop

Sabrina Carpenter Delivers Rain-Soaked Performance Of ‘Tears’ At MTV VMAs

Photos: Biggest Celebrities At 2025 U.S. Open Men’s And Women’s Finals

Shoppers love 'painless and best' hair removal gadget so much it keeps selling out

Ukraine's new interceptor drones destroyed 150 of Russia's long-range UAVs in a single night, Zelenskyy says

Meta's marketing chief says early-stage startups shouldn't create one kind of team &mdash; the CEO needs to take charge

Spurs 'not for sale' as owner rejects approaches

India’s Investors, Defying Tariffs, Keep Pouring Money Into Stocks

Taylor Swift Skips 2025 VMAs, Stays Tied For Record Wins

Why The Green Bay Packers Look Like The Team To Beat in The NFC North

Lady Gaga Dedicates MTV VMAs Artist Of The Year Win To Fiancé And Fans

MTV VMAs 2025: Megan Moroney Wins New ‘Best Country’ Award

Alcaraz Trumps Sinner To Claim U.S. Open Title

Despite Trade Deadline Tear-Down, Diamondbacks Still In Playoff Hunt

Parents of children between two ages urged to 'tell HMRC' or lose cash

‘The Walking Dead: Daryl Dixon’ Season 3, Episode 1 Review — Drinker, Sailor, Zombie, Bye

Today’s Wordle #1542 Hints And Answer For Monday, September 8th

The Good, Bad And Ugly From The Green Bay Packers Win Over The Detroit Lions

MTV VMAs 2025 Full Winners List (Live Updates)

Today’s NYT Pips Hints And Solutions For Monday, September 8th

Photos: 2025 MTV VMAs Red Carpet Arrivals Include Doja Cat, Sabrina Carpenter And More

Germany Rebound To Beat Northern Ireland 3-1

Forget smart meters and use £10 home hack that helps you save on energy bills

In Ukraine, civilians donate their spare cash &mdash; and watch it turn into $40 million strikes against Russia

Talking to AI helped her be a calmer, better mom &mdash; so she vibe-coded a web app to help others emotionally reset

AI godfather Geoffrey Hinton says a girlfriend once broke up with him using a chatbot

I spent my 50th birthday swimming around Greek islands with friends. Even though we were the slowest, it built my confidence.

A Gen Zer from the Philippines studied overseas, hustled through side gigs, and built a tiny house she now runs as an Airbnb

Carlos Alcaraz wins his 2nd U.S. Open at match delayed by Trump's attendance

More than 90,000 Jeep Grand Cherokees recalled over potential loss of drive power

Travellers facing severe Tube disruption with few to no services running

In US town hoping for revival, Trump's tariffs put to test

Kumail Nanjiani describes meeting Elon Musk and Mark Zuckerberg — and why Musk 'didn't like' the show 'Silicon Valley'

Meta's marketing chief says early-stage startups shouldn't create one kind of team — the CEO needs to take charge

In Ukraine, civilians donate their spare cash — and watch it turn into $40 million strikes against Russia

Talking to AI helped her be a calmer, better mom — so she vibe-coded a web app to help others emotionally reset