Y Combinator CEO Warns Fake-It Mindset Risks Jail for College Entrepreneurs

Garry Tan, CEO of startup accelerator Y Combinator, has strongly criticized some college entrepreneurship programs for promoting a 'fake it till you make it' mindset, warning that this can lead to serious legal consequences including jail time. Speaking at YC's AI Startup School, Tan condemned these programs for teaching students to lie to investors, citing the high-profile fraud cases of Sam Bankman-Fried and Elizabeth Holmes as cautionary examples. Tan emphasized that ambition and innovation must be grounded in honesty and integrity, rejecting the notion that deceptive practices are necessary for success. YC managing director Jared Friedman echoed these concerns, describing academic entrepreneurship courses as producing a 'cheap facsimile' of real startup life by encouraging rigid formulas and hype over substance. Both Tan and Friedman also criticized universities for restricting access to essential AI tools, which they believe hampers students' ability to develop relevant skills. They urged students to carve their own legitimate path in entrepreneurship rather than following outdated, unethical models.