IIT Dropouts vs IIT Graduates: Why India’s Startup Founders Now Prefer Dropouts

A quiet revolution is reshaping India’s startup hiring culture. Dropping out of prestigious institutions like IIT is no longer seen as failure — it’s becoming a mark of courage, curiosity, and self-direction in the country’s booming frontier tech ecosystem.

From Prestige to Purpose

For decades, cracking the IIT entrance exam symbolized ultimate success — a gateway to elite jobs, societal prestige, and lifelong validation. But in today’s AI-driven startup world, that traditional narrative is losing ground.

Increasingly, India’s top founders and tech leaders are valuing agency over academic achievement. Those who choose to leave elite institutions in pursuit of something larger are being recognized for their boldness and originality — traits critical in industries where no rulebook exists.

“I’ll take a sharp IIT dropout over a top-ranking IIT graduate any day,” says the founder of a fast-growing Indian AI company.
“Leaving a premier institution signals something rare — the courage to think independently and the hunger to create new paths.”

The Rise of the Elite Dropout

This sentiment is spreading quickly across India’s startup landscape. Ankur Agarwal, Founder and CEO of The LHR Group, recalls a conversation with a founder of a recently funded AI startup who turned down introductions to IIT toppers.

“We think dropouts might be a better fit,” the founder said. “We need people with high agency who realised their degree wasn’t teaching them anything relevant — and left to learn by doing.”

Agarwal adds that the trend mirrors what’s happening in the Bay Area’s deep tech startups, where initiative and adaptability often matter more than credentials. Founders now look for individuals who can navigate uncertainty and build without guidance — qualities that formal education rarely cultivates.

Why Traditional Credentials Are Losing Their Edge

This evolution doesn’t mean IIT degrees have lost their relevance. In structured industries such as banking, consulting, and big tech, they still hold immense weight.

But in fast-moving domains like AI, blockchain, and deep tech, execution trumps pedigree. Knowledge ages rapidly, and success hinges on one’s ability to learn, unlearn, and rebuild continuously.

“Companies like Google or high-frequency trading firms will always hire IIT graduates,” says Agarwal. “But for frontier technologies, curiosity and courage are better predictors of success than degrees.”

A Global Pattern Finds Roots in India

The glorification of dropout founders isn’t new — Silicon Valley has long celebrated icons like Steve Jobs, Mark Zuckerberg, and Elon Musk.

What’s remarkable is how this mindset is gaining traction in India — a country where education and social identity are deeply intertwined. Once viewed as unthinkable, dropping out of IIT is now seen by some as a bold leap of faith toward innovation and independence.

Beyond Rebellion: Betting on Yourself

The new admiration for dropouts isn’t about rebellion — it’s about conviction. Walking away from an IIT degree means rejecting a guaranteed path to security for a riskier but potentially more fulfilling journey.

For many, classrooms feel too restrictive. Real learning happens in co-working spaces, late-night coding marathons, and startup accelerators. And increasingly, their bets are paying off.

“Sometimes, the riskiest move is staying on the safest path,” Agarwal reflects. “We’re seeing a new generation willing to bet on themselves — and they’re building India’s next wave of innovation.”

The New Credentials: Curiosity and Courage

As India’s startup ecosystem matures, success is being redefined. A degree is no longer the ultimate symbol of potential. Instead, the most valuable credentials are curiosity, courage, and adaptability — traits that cannot be taught but only demonstrated.

Dropping out today isn’t about giving up — it’s about stepping into the unknown and writing your own script. In a world where the only constant is change, that might just be the strongest qualification of all.