Peter Thiel has created a buzz by offering $100,000 to 20 students for dropping out of college to pursue high-tech entrepreneurial dreams. Image: CC David Orban/Flickr
Peter Thiel is a high-tech billionaire who was one of the first investors in Facebook. He is known for his flamboyant lifestyle and over-the-top libertarian ideology. Last month Thiel invited controversy by announcing the Thiel Fellowship, a program offering young entrepreneurs $100,000 to drop out of college and launch high-tech start-ups.
The Thiel Fellowship
Peter Thiel’s Thiel Fellowship will award 20 entrepreneurs younger than 20 with grants of up to $100,000. In a press release, Thiel said some of the innovations that changed the world the most were created by college dropouts who had “ideas that couldn’t wait until graduation.” Thiel, who has made billions with PayPal, Facebook and the Clarium hedge fund, cites such rare examples as Elon Musk, who dropped out of graduate school to start Zip2, which he sold to Compaq for $307 million.
Reaction to Peter Thiel’s offer
The reaction to Peter Thiel’s $100,000 offer to drop out of school has been negative and positive. Jacob Weisberg at Slate said Thiel is simply feeding his enormous ego by encouraging kids to emulate him and that his offer deflects college students “from the love of knowledge to the love of money.” On the other hand, Nick Saint at Business Insider said “it’s ridiculous to suggest that most people who go to college do so from the love of knowledge for its own sake.” Jesse Walker at Reason points out that Thiel has a graduate degree, so the Thiel Fellowship college dropouts aren’t exactly emulating their benefactor.
What a university thinks about Thiel
Higher education, directly confronted by the Thiel Fellowship, has also weighed in. Dr. Jeff Cornwall at Belmont University posted an invitation for Thiel to come visit Belmont’s programs for experimental learning. Cornwall wrote that he would introduce Thiel to some student and alumni entrepreneurs who came back to school after they dropped out when they realized what they were missing.
Sources
One of the greatest scams of our age is the phrase "Four Year College Degree".
Have you ever wondered why it takes exactly four years to get an education – regardless of the area of study being pursued? Well guess what, it doesn't.
What colleges have been doing for decades is selling these "Four Year" programs that contain one to three years worth of actual learning and then are stuffed with academic fluff to make up the rest of the time.
What a brilliant idea! I don't see how Peter Thiel can lose. At least one of those young entrepreneurs will strike gold and he'll be there to help catch it. Wish I was young again . ..
Good on him!
thomas edison spent only three months in school. john harrison never went to a school. so, i guess this might not be such a bad idea. except, what is the catch? he isn't giving the 100 grand without some sort of a catch, like taking ownership of the startup.
Traditionally Parents want their kids to attend college to be doctors and lawyers so they can make mega money! That's what most parents invest in. Today's kids are much more sophisticated and realistic than ever… knowledge is only knowledge until it is applicable. Don't kid yourself… school is a business to make money whether it is by tax dollars or private tuition. Schools structure their courses according to politicians instructions for control. I agree that kids should seek out their passion early and polish themselves at an early age in order to have a longer successful life. Mr. Thiel's program actually solves many kids' financial restrictions. I wish someone would give me the free education plus $100k and a franchise!
I know Asian communities who would love his offer world wide! My brother's business is a natural pipeline for this opportunity.