Drop out and innovate

DaemonSeid · #1 12-21-2010, 11:16 AM

The man who financed Facebook is offering 20 two-year $100,000 fellowships to teenagers with big ideas - as long as they leave university. Jon Marcus reports

Before he was 21, Peter Thiel was a ranked chess master and founded the Stanford Review, a libertarian newspaper at Stanford University, which he attended.

Now a billionaire venture capitalist and hedge fund manager with a sometimes controversial reputation for pushing unconventional ideas, Thiel is betting that others also can succeed at a young age - and don't need a university education to do it.

The San Francisco-based founder of PayPal and co-founder of Facebook is offering two-year fellowships of up to $100,000 (£63,800) to 20 entrepreneurs or teams of entrepreneurs aged under 20 in a worldwide competition that closes this week.

With the money, the recipients are expected to drop out of university - Thiel calls it "stopping out" - and work full time on their ideas.

"Some of the world's most transformational technologies were created by people who stopped out of school because they had ideas that couldn't wait until graduation," Thiel says. "This fellowship will encourage the most brilliant and promising young people not to wait on their ideas either."

Thiel says the huge cost of higher education, and the resulting burden of debt, makes students less willing to take risks. "And we think you're going to have to take a lot of risks to build the next generation of companies."

But his plan also clearly challenges the ability of conventional universities to foster innovation. "I do think there are a lot of things people learn in school," Thiel says wryly. "I don't think they learn anything much about entrepreneurship."

Thiel, 43, who was born in Germany, is best known as Facebook's first outside financial backer, fronting the company $500,000 and allegedly playing a role in the divisive infighting that ousted some of the original founders. He is portrayed briefly but harshly in the recent film about Facebook, The Social Network.

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All of the would be Bill Gates and Mark Zuckerbergs step right up!!

No good idea too small!

I don't have too much of a porblem with this as sometimes, hands on is the best way to learn but by doing this, there IS NO GUARANTEE that you will be financial set after doing this...but I suppose that is the RISK one must take!

33girl · #2 12-21-2010, 11:23 AM

This is just another instance of why I haven't reregistered Libertarian - their most vocal party members that go way too effing far.

You don't become a chess master just by practicing, you have to have an inner talent. This is like Mozart telling people to drop out of school and he'll finance them, as long as they take music lessons. Some people (most people) could practice and take lessons every day of their life and never TRULY make music.

DrPhil · #3 12-21-2010, 12:56 PM

facebook = the devil

knight_shadow · #4 12-21-2010, 01:00 PM

Quote:

Originally Posted by DrPhil

facebook = the devil

PhoenixAzul · #5 12-22-2010, 08:59 AM

This is all well and good...but what happens if the idea flops, big time? You've got people with good ideas and no qualification, in a job market with people with good ideas and good qualifications. The companies that "innovate" still hire people based on a resume. It would be awesome to be able to roll up to an interview and talk about all the ideas I have for redoing their museums, but that would be ridiculous and that's not what they're after...they want to know what I can do, and what I know, and where I learned it.

So let us say that for some reason, a kid gets one of these fellowships. Think wayyyy back (or not so way back) to when you were that age. What would you have done with $100k a year in salary? Now think about what it will be like at the end of those two years:

1) you could have a wonderful idea/product, and it takes off, and life is grand. Awesome, rock on.
2) the idea flops big time, and now you're left to either re-apply to university, or enter the job market without qualifications.

If it were me, I'd just keep innovating in my dorm room and working on it as a side project. The truly innovative, the truly creative, will always find a way, in or out of university.

Senusret I · #6 12-22-2010, 09:17 AM

The fellowship creates an incentive for the truly creative. Nothing wrong with that.

PiKA2001 · #7 12-23-2010, 01:52 AM

Quote:

Originally Posted by PhoenixAzul

So let us say that for some reason, a kid gets one of these fellowships. Think wayyyy back (or not so way back) to when you were that age. What would you have done with $100k a year in salary? Now think about what it will be like at the end of those two years:

1) you could have a wonderful idea/product, and it takes off, and life is grand. Awesome, rock on.
2) the idea flops big time, and now you're left to either re-apply to university, or enter the job market without qualifications.

If it were me, I'd just keep innovating in my dorm room and working on it as a side project. The truly innovative, the truly creative, will always find a way, in or out of university.

I think this is an amazing opportunity! The 100k a year wouldn't necessarily be for salary, but for start-up costs and R&D(at least that's how I read it). I think that's the key right there. From what I've read about inventors the hardest obstacle they face is getting funding/investors to back them. Hell, even if their idea does flop the experience gained and contacts made would still make the endeavor worthwhile.

excelblue · #8 12-23-2010, 07:08 AM

Real innovators can both secure more than $100k and have their way of waiting until after graduation.

If they have an idea and it's worth dropping out of college for, it's definitely worth a lot more than $100k. They'll probably be able to find VCs who will both give the money will allowing them to stay in college. Also, in reality, it's really about effectiveness in implementing the ideas rather than the ideas themselves.

At the same time, if it's really that good of an idea, it's not like people are going to snatch the opportunity during that extra year or two to finish college. If an idea is really that simple, chances are, it's not worth your time. If you are a real innovator, you'll have plenty of other opportunities afterwards anyways.

Only person who really gains from this is Peter Thiel, who gets to capitalize on a bunch of potentials, relatively cheaply, while screwing most of them for life.

Alumiyum · #9 12-23-2010, 05:51 PM

Quote:

Originally Posted by 33girl

This is just another instance of why I haven't reregistered Libertarian - their most vocal party members that go way too effing far.

You don't become a chess master just by practicing, you have to have an inner talent. This is like Mozart telling people to drop out of school and he'll finance them, as long as they take music lessons. Some people (most people) could practice and take lessons every day of their life and never TRULY make music.

Not everyone understands that concept, for sure. If they did there would be far fewer struggling artists of all types. (And I say this as an artist...being realistic can go a long way.)

tld221 · #10 12-23-2010, 06:16 PM

People drop out of school for different reasons. Some go back, others don't.

At first glance I said "WTF" but its not much different than taking a leave of absence to do research, or a co-op, internship or the like. We don't know this guy's intentions of going back. It's not like dude is looking for a reason not to finish school. He sounds totally capable of finishing.

The way the opportunity is being pitched of course is "you dont need no stinkin school, follow your dreams like me and get rich!"

IMO this is WAY better than Making the Band season/ANTM cycle 283924710938 and having someone leave school to pursue their "talents." Some of these people find success and money, others... not so much. Did any of these folks go back to school? Did anyone care?

33girl · #11 12-24-2010, 01:14 PM

Quote:

Originally Posted by Alumiyum

Not everyone understands that concept, for sure. If they did there would be far fewer struggling artists of all types. (And I say this as an artist...being realistic can go a long way.)

The ex is a musician and artist. He insists that if I practiced every day, I could be either. The thing is...it's as natural to him as breathing and he doesn't realize how rare it is because it's so much a part of his DNA.

Alumiyum · #12 12-24-2010, 01:35 PM

Quote:

Originally Posted by 33girl

The ex is a musician and artist. He insists that if I practiced every day, I could be either. The thing is...it's as natural to him as breathing and he doesn't realize how rare it is because it's so much a part of his DNA.

I'm a realist at heart...I'm talented and drawing comes naturally, but I'm not an artistic genius and I'm fully aware of that. I've come across a lot of people very much like myself but without the ability to realize they aren't Michaelangelo reincarnated. They end up making things harder for themselves because of that.

SO is that same way about music, though. He's also a painter and is on the same wavelength that I am about talent. Only he can also hear a song and then go play it on the guitar. He's convinced that's something anyone can do, no matter how many times I assure him that it's not. I'm sure I could eventually learn how to play a guitar, but I'll never be able to play like he can no matter what I do. As you say it's as natural to him as breathing, so he can't understand why others are so floored by it.

christiangirl · #13 12-24-2010, 05:46 PM

^^^I second that! The way art, music, etc come to people naturally, I believe some people have a knack for entrepreneurship. Some people can just take an idea and "make it happen." However, not everyone has the same talents and some kids will leave school for this opportunity and fail at it. They have to be prepared for that.

Also, am I mistaken? I thought it was 100k for the entire 2 year stint, not per year.

Quote:

Originally Posted by tld221

At first glance I said "WTF" but its not much different than taking a leave of absence to do research, or a co-op, internship or the like. We don't know this guy's intentions of going back. It's not like dude is looking for a reason not to finish school. He sounds totally capable of finishing.

The way the opportunity is being pitched of course is "you dont need no stinkin school, follow your dreams like me and get rich!"

IMO this is WAY better than Making the Band season/ANTM cycle 283924710938 and having someone leave school to pursue their "talents." Some of these people find success and money, others... not so much. Did any of these folks go back to school? Did anyone care?

To me, leaving school would be the entire world crumbling so I'd be appalled if someone offered me money to leave.

However, even though it reads that way, I think it really is more the way TLD describes it. It's a great way to get yourself out there, learn the ropes of entrepreneurship, etc. And school will still be there should you happen to come home and realize there's more for you to learn.

Incidentally, I know a guy who left school for MTB and, when that didn't work, he came back and graduated then tried music again after school. No biggie. However, he wasn't one of those "This competition is my very last chance in the world to live my dreams, I'll just die without it" types. If one is serious about his or her dreams, he or she can get there after graduation, too.