The other day, I was scrolling through Reddit—as one does—when I stumbled across a post that stopped me mid-scroll.
A founder shared a story about meeting one of their investors, who had put $300,000 into their startup three years ago.
The kicker?
The investor didn’t remember them. Worse, they kept asking if the founder was from MIT.
The founder clarified, again and again, that they weren’t from MIT. Yet, the investor had still chosen to invest in them three years prior.
The post ended with a question that stuck with me: Why do investors care so much about pedigree, even when it doesn’t predict success?
It’s a great question—and one that deserves a closer look. Let’s be honest: the startup world loves a good pedigree.
Ivy League degrees, prestigious internships, and fancy connections often act as golden tickets to funding.
But here’s the thing: customers don’t care where you went to school. They care about your product. So why do investors? And more importantly, what are we missing by overvaluing pedigree?
The Psychology Behind the Pedigree Bias
Investors are human, and humans love shortcuts. When you’re sifting through hundreds of pitch decks, it’s tempting to use a founder’s educational background as a quick filter.
After all, if someone got into Harvard or Stanford, they must be smart, right?
But this bias runs deeper than just convenience. It’s about social proof. We’re wired to trust what others value, and elite institutions have been branded as the ultimate markers of success.
If everyone else thinks an Ivy League degree is a big deal, it’s easy to assume it matters more than it does.
And let’s not forget risk aversion. Investing in someone from a prestigious background feels “safer.”
It’s a way to hedge bets, even if it means overlooking founders with less conventional paths but equally compelling ideas.
But here’s the thing: it might not even be about the degree itself. It’s about the network that comes with it.
Attending an elite school often means access to powerful alumni networks, influential mentors, and high-profile connections.
For investors, backing a founder from one of these schools isn’t just a bet on the individual—it’s a bet on their ability to tap into that network for resources, partnerships, and talent
Still, pedigree doesn’t guarantee success.
In fact, some of the most successful founders in history didn’t come from elite schools—or didn’t graduate at all.
Steve Jobs dropped out of Reed College.
Jan Koum, the co-founder of WhatsApp, was a college dropout from a non-elite school.
Sara Blakely, the founder of Spanx, had no business degree or connections. Yet, they all built billion-dollar companies.
By overvaluing pedigree, investors risk missing out on these kinds of founders. Worse, they perpetuate a homogenous startup ecosystem where founders from non-elite or underrepresented backgrounds struggle to get funding.
This isn’t just bad for diversity—it’s bad for business. Innovation thrives on fresh perspectives, not the same old networks.
And let’s be real: a fancy degree doesn’t guarantee grit, creativity, or execution. These are the qualities that truly drive startup success.
You can’t learn resilience in a lecture hall.
Examples of Success Beyond Pedigree
Take Arlan Hamilton, for example. She built a venture capital firm, Backstage Capital, from scratch while homeless.
Her mission?
To fund underrepresented founders who were being overlooked by traditional investors. Today, her portfolio includes companies like Partpic (acquired by Amazon) and Qeyno Labs.
Or consider Brian Chesky, the co-founder of Airbnb. He graduated from the Rhode Island School of Design—not exactly a traditional breeding ground for tech entrepreneurs.
Yet, Airbnb is now a household name, valued at over $100 billion.
These stories aren’t outliers. They’re proof that success isn’t tied to a specific school or background.
It’s tied to vision, determination, and the ability to execute.
How Investors Can Move Beyond Pedigree
So, how do we fix this? First, investors need to look for alternative signals of potential. Instead of focusing on where a founder went to school, look at what they’ve accomplished.
Have they built traction? Do they have a strong team? Are they solving a real problem?
Some investors are already experimenting with blind evaluation processes, where founder backgrounds are hidden during initial pitches.
This forces them to focus on the idea and the execution, not the resume.
And let’s not forget the power of diverse networks. If you only hang out in Ivy League circles, you’re going to miss out on incredible founders from non-traditional backgrounds.
Go to different events, build relationships with underrepresented communities, and actively seek out founders who don’t fit the mold.
What Founders Can Do to Overcome the Bias
If you’re a founder without a prestigious background, don’t despair. Focus on what you can control: your product, your traction, and your story. Let your results speak for themselves.
Build a compelling narrative around your journey. Why are you the right person to solve this problem? What unique perspective do you bring to the table? Investors love a good story—especially one that challenges their assumptions.
And don’t be afraid to target the right investors. Look for those who value diversity and are willing to look beyond pedigree. They’re out there, and they’re often the ones backing the most innovative companies.
Conclusion
That Reddit post stuck with me because it highlighted a truth we don’t talk about enough: the startup world’s obsession with pedigree is a relic of an old system—one that values credentials over creativity, and networks over innovation. But the truth is, customers don’t care where you went to school. They care about what you’re building.
As investors, it’s time to challenge our biases and focus on what really matters: execution, vision, and the potential to change the world. And as founders, it’s time to prove that success isn’t about where you come from—it’s about where you’re going.
So, the next time you evaluate a founder, ask yourself: Am I investing in their degree, or their potential to build something extraordinary?
This version ties the anecdote to a relatable, modern platform (Reddit) and uses it as a springboard to explore the broader issue. Let me know if you'd like further tweaks!
