Garry Tan, CEO of startup accelerator Y Combinator, delivered a serious warning to engineering and business students about the pitfalls of adopting a “fake it till you make it” mentality. Speaking at Y Combinator’s AI Startup School during a recording of the Lightcone Podcast, Tan cautioned that such an approach can lead to significant legal consequences, including incarceration.
Tan expressed concern over certain academic entrepreneurship programs that might be promoting deceptive practices among students. He criticized these courses for potentially encouraging a culture of dishonesty, stating, “We’re very worried about them because what we’re coming to understand is they are teaching you to lie. That’s a waste of time — and you’re gonna go to jail.”
Referencing high-profile cases of fraud, including those of Sam Bankman-Fried from FTX and Elizabeth Holmes from Theranos, who faced severe penalties for their fraudulent actions, Tan highlighted the real risks associated with misleading investors or exaggerating business capabilities. “They don’t represent us!” he asserted, aiming to clarify that Y Combinator’s values are rooted in honesty and integrity.
Jared Friedman, Y Combinator’s managing director, joined Tan in criticizing the shortcomings of many college entrepreneurship programs, calling them a “cheap facsimile” of real startup life. He noted that these programs often emphasize rigid frameworks that prioritize hype over genuine substance, warning that they reduce the entrepreneurial journey to a mere method rather than nurturing true innovation.
Furthermore, Tan and his colleagues lamented the limitation of access to AI tools, like the AI-powered code editor Cursor, in educational institutions, asserting these tools are vital for modern startup development.
In conclusion, Tan urged aspiring entrepreneurs to embrace transparency, focus on creating genuine products, and steer clear of shortcuts. “Software is the most empowering thing in the world. Why do you have to lie?” he questioned, reinforcing that true success lies in innovation and integrity rather than deception.
This message serves as a critical reminder for the next generation of innovators that honesty is essential for long-term success in the startup ecosystem. The call for integrity could inspire students to pursue their ambitions with authenticity, ultimately contributing to a more robust and trustworthy entrepreneurial landscape.