Tech CEO slams college entrepreneurship programs for ‘teaching you to lie’ he warns Gen Z that ‘faking it till you make it’ could land them in jail

By Admin

11 Jul, 2025

A Harsh Wake-Up Call for Future Founders

In a bold warning to aspiring entrepreneurs, Garry Tan, the president and CEO of Y Combinator, has raised serious concerns about what some college entrepreneurship programs are really teaching students. During a recent live recording at YC’s AI Startup School, Tan cautioned Gen Z against embracing a fraudulent mindset that idolizes infamous startup fraudsters and their dangerous tactics.

The Problem: “They Are Teaching You to Lie”

Without naming specific institutions, Tan made his point clear: “We’re not going to name them, but in full transparency, we’re worried about them because what we’re coming to understand is they are teaching you to lie,” he told a group of students. His message was unflinching. “That’s a waste of time. And you’re gonna go to jail.”

His statement was a direct response to the “fake it till you make it” philosophy, which gained notoriety following the high-profile scandals involving Elizabeth Holmes of Theranos and Sam Bankman-Fried of FTX. While these stories might fascinate young minds, Tan warns that idolizing such figures could be incredibly damaging not just to their future careers, but to their integrity and even their freedom.

Ethical Shortcuts Aren’t the Answer

Tan acknowledged that today’s startup environment feels cutthroat and zero-sum: “In a world where there’s less money, where there’s fewer and fewer jobs, I kind of get it.” But he quickly added, “You don’t have to play by those old rules anymore. You don’t have to lie to investors. You don’t have to fake it till you make it.”

The core message? Success doesn’t require deception. Real innovation and perseverance are what drive the future of tech not smoke and mirrors.

Startups Don’t Fit a Classroom Mold

Jared Friedman, managing director of software at Y Combinator and cofounder of Scribd, pointed out a significant flaw in college programs: “Anytime you try to bottle up entrepreneurship and teach it as a college course, what you end up with is basically a cheap facsimile.” He emphasized that startups are inherently unstructured and can’t be reduced to formulas or rigid curriculums.

The tech world changes rapidly, and some academic models simply can't keep up. Take social media: in just a few years, its power to build brands and launch products has exploded. Yet many programs still lag behind, offering outdated advice in a fast-moving digital landscape.

Tech Education Falling Behind

This educational gap isn’t limited to business programs. Diana Hu, general partner at YC, noted that many computer science departments are also falling short. “They’re quite literally prohibiting the students from learning the tools that they are going to need in the future,” she said, particularly pointing to AI tools that are shaping the next wave of innovation.

Industry Leaders Share Similar Doubts

Tan and the YC team aren’t alone in their concerns. Meta CEO Mark Zuckerberg recently expressed skepticism about how well colleges prepare students for today’s jobs. “I’m not sure that college is preparing people for the jobs that they need to have today,” he said on a podcast with Theo Von, also highlighting the growing student debt crisis.

Elon Musk, CEO of Tesla and SpaceX, has echoed this sentiment, stating, “Too many people spend four years, accumulate a ton of debt, and often don’t have useful skills that they can apply afterwards.”

A Shift Toward Alternative Paths

As skepticism grows, companies are shifting too. JPMorgan Chase, IBM, and others have already scaled back degree requirements in job postings. Michael Bush, CEO of Great Place to Work, believes this trend is only just beginning: “Almost everyone is realizing that they’re missing out on great talent by having a degree requirement.”

The Bottom Line

Garry Tan’s warning to young founders is crystal clear: Don’t let college programs or society’s obsession with flashy success stories convince you to compromise your values. “Faking it till you make it” might seem like a shortcut, but in today’s transparent, tech-driven world, it could land you in real trouble.

Instead, young entrepreneurs should focus on building real skills, embracing innovation, and staying grounded in truth. Because in the end, authentic leadership not illusion is what truly builds lasting companies.