Harvard dropout starts a company and raises 20 million dollars. I bet you heard this story so many times and you might feel intimidated by them. But what makes students from Ivy League universities so spectacular?
The Social Network
I turned 20 years old when The Social Network (movie) released. The film focuses on how Mark Zuckerberg and his friends started Facebook in college. Jessie Eisenberg played Zuckerberg's character quite well. So much so, that his story was an inspiration to kids that felt "different". I happened to be one of those kids.
I remember how impressed I was by Mark and his colleagues. Who wouldn’t be impressed by a bunch of guys that started a billion-dollar company in their dorm rooms? Especially when at the time, I had about $100 in savings with a negative increment outlook. I needed to fill up the tank of a car that was worth around $500. All in all, I felt like I had made poor life decisions because I wasn't anywhere near starting my own business.
I then decided to take a closer look at my friends and fellow computer science students. About 60% of them had either dropped out or failed in their very first year. “Did they go on to start their own billion-dollar startups?” I wondered. I found one guy - he had started a marketing agency for bakeries. Don’t get me wrong, he was very successful compared to me and other students. He had even managed to grow his business to 5 employees before I graduated and lost track. I haven’t seen him in the news recently, so I guess he’s not a billionaire yet, despite being successful in his own right.
Startups vs Old-Money
I went down a rabbit hole trying to find other startup billionaires to inspire me. I hoped that I could learn from them and apply their principles to my own life.
I dug deep into the European startup ecosystem without much luck. The only examples I found, at the time, were the Samwer brothers. They had started a company called Rocket Internet. It analyzed early-stage startups in the US and built copies of them in the DACH market.
DACH comprises countries in Europe with a German-speaking majority (Germany, Austria, Switzerland).
The Samwer brothers had built an excellent startup factory that was able to launch functional products within 90 days. They were very impressive but there was one problem. Marc and Alexander Samwer hold MBAs from Harvard. As such, they didn’t fit my startup-billionaire profile. In fact, instances of European startup billionaires were almost non-existent. Even startup millionaires were rare. Most times, the richest people were part of families that had generational wealth. Most of the time, they were inventors that had made a fortune from their patented ideas. Some others enjoyed frequent government contracts.
For instance, have you heard about a company called Dr. Oetker?
August Oetker founded the company in 1891. They make Pizzas, baking ingredients, and other perishables. Yet, they made their fortune because August invented and patented baking powder.
Unfortunately, there isn’t much wealth that originates from high-tech startups in Europe. It seems like every successful software company is getting acquired by large investors. European states have a lot of good agencies investing in startups but they haven’t been able to match the levels of success seen in the US, or even Israel. This makes me believe that there must be something about the students in Ivy League colleges in the US. Something that makes them very special.
Silicon Valley
Today, 13 years later, I am a software engineer with 10+ years of experience. I have worked for a diverse range of companies in 5 countries. Some of which were startups, SMEs, and enterprises. A year ago, I became a hiring manager for a cryptocurrency startup based in Palo Alto, CA. Our company is fully remote, with team members all over the world. The best thing this job gave me is an opportunity to work with people from all backgrounds and learn about them.
I have conducted interviews with software engineers from Fortune 500 and FAANG companies. We were hiring various candidates, from interns to experienced contributors. The hiring spree happened in the first half of 2022. This coincided with a crypto bull market and the "great resignation". Our company was trying to fill positions in almost every department, from accountants to software engineers.
We didn't have an employer brand in the Bay area at the time, so we decided to hire interns. We had internship candidates from Ivy League and lower-tier colleges alike. The Ivy League candidates usually rejected our offers. They preferred to take internships at Amazon, Google, or any other FAANG company.
From a learning perspective, they would’ve learned more at our company. We are a small team that is building an entire decentralized finance application. The internship would’ve given them an opportunity to try their hands at different things. More so, from a resume standpoint, an internship at Microsoft would handicap their careers. In a structure like that, there isn't any room chance for interns to make changes to the live system or jump between roles.
But what about interns from lower-tier universities? Were they worse than those from Harvard or MIT?
No, not at all.
American vs European Universities
There is one main misconception about universities. The main purpose of universities isn't to teach but to help scientific research. Period. Offering education is how they make money. And it applies to both private and public institutions.
Most university rankings aren't based on the salaries of their graduates. Instead, they focus on the number of scientific papers and patents produced by them. Since all universities want to focus on science, they need to enroll Ph.D. students to do so. Those students want to join the most prominent universities since they open doors to the world of science.
Unfortunately, it is hard to profit from science alone. Also, Ph.D. students do not contribute a lot with tuition fees. So, universities look to businesses and states for "gigs". Research and student tuition are the major ways they source funds. Even Harvard relies on the federal government for 70% of its research funding.
Now, let's shift our focus to the public education system in Europe. On the mainland of Europe (excluding the UK), public education is, more or less, free.
In these states, taxpayers bear the cost of education in exchange for services. For instance, to provide free education and healthcare, the government needs to educate doctors and nurses. Also, skilled workers contribute more to the GDP. The GDP is then invested to increase the country's HDI index. Meaning that even people with elementary education enjoy the benefits of a qualified workforce. The government pays universities for every enrolled student, even if they drop out. Otherwise, the university would receive incentives to let everybody get a diploma. This allows them to maintain high standards.
Why Are Top Tier Universities Better?
Students in top universities don't necessarily get a better education than those in lower-tier schools. It's not because of a lack of opportunity but rather limited time. Even though all universities have similar time frames for education. Around 3 years for a bachelor's degree and 2-2.5 years for a master's.
Let’s take a closer look at this.
In most degree programs, subjects are typically covered within a single semester, with weekly lessons lasting 3-4 hours. It isn’t enough time to gain broad insights on the subject. Only Ph.D. students are able to take true advantage of the extra quality in tier-A universities. They have the most time to focus on studying and have access to the best professors.
Going to the best universities is not a waste for regular people. These schools have the best teachers, set high standards, and expect a lot. They have to work hard and earn good grades. They learn to collaborate, and develop discipline and work ethic (but not always). These are desirable traits in adult life. Also, the best universities attract students from wealthy families. It means students build a meaningful network that can skyrocket their careers.
If you graduated from a university known for its fun parties, it may be challenging for you to compete with someone who graduated from Harvard. It's likely that you didn't have to deal with politics or complicated social interactions. Meaning you will learn those things in the first few years of your career.
Does it mean you’re a lost cause? Not at all.
If you are talented you can still outwork Harvard alumnus but it won't be easy. You will need to work harder than they do and exceed the expectations. Always!
Whatever you do in life you need to develop discipline and take responsibility. The best opportunities are never the easiest ones so if you are getting involved in something you really need to own it. You can outdo even those that seem “predisposed to success” but it takes personal sacrifices.
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Thank you for reading. I am a software engineer with 10 years of experience, living my best life as a digital nomad. This newsletter is a response to a younger me who felt lost and needed to find a career path on his own. Subscribe if you want to get more tips and ideas on growing your career as a software engineer and becoming a digital nomad.
This article was initially published on my weekly newsletter.
If you have appetite for more I just published new article on How Influencers And Books Make Us Dumb