Why Peter Thiel Is Wrong To Pay Students to Drop Out
Stanford Law School grad, Peter Thiel, wants to pay college students to drop out. If typical venture capital odds apply, about 22 of the 24 people who took his $100,000 inducement to drop out and spend two years working in a start-up will fail to build a successful company. For their sake, let’s hope the schools will let them back in.
And based on research from the country’s top-ranked school of entrepreneurship, the world will be better off if those whippersnappers stay in school and get 10 years of experience before launching their start-ups.
Peter Thiel has a mixed investment record but has come out ahead. Thiel made $55 million as a co-founder of online payment service PayPal when he sold his 3.7% stake in the company to eBay (EBAY) shortly after graduating from Stanford Law School. He then became the first major investor, putting $500,000 into Facebook.
