According to new research led by Professor Ilya Strebulaev, of Stanford Graduate School of Business, a shift has occurred in the academic backgrounds of these elite entrepreneurs.
The findings show that business programs have overtaken computer science (CS) and engineering as the most common graduate degrees among unicorn founders, marking a significant trend in the startup ecosystem.
Here we delve into why there has been a shift and what it is about business degrees that creates these hugely successful founders.
How has business become the most popular degree type for unicorn founders?
Historically, engineering was the go-to discipline for aspiring tech entrepreneurs. Prior to 2008, 26% of unicorn founders held degrees in engineering, making it the leading field among this group. During this period, business degrees were the second most common at 21%, with CS lagging behind at 16%.
However, the landscape began to shift. Between 2008 and 2013, engineering saw a decline, with its share dropping to 15%. During this time, CS and business degrees became the top fields, with 24% and 20% representation among founders, respectively. This change reflected the increasing importance of technological innovation, as startups such as Facebook, Twitter, and Dropbox—led by CS-savvy founders—dominated the market.
However, since 2014, business degrees have taken over from CS to become the most prevalent field of study among unicorn founders, accounting for 20% of graduate degrees.
CS, while still significant, has slipped to 17%, and engineering has remained steady at 16%. This shift suggests a growing recognition of the value of business acumen in scaling ventures, navigating markets, and securing investment.
Top degrees among unicorn founders since 2008
Other popular degrees among unicorn founders
Beyond business, CS, and engineering, other disciplines have also played important roles in shaping unicorn founders. Before 2008, medicine (6%) and finance (5%) were notable fields.
From 2008 to 2013, medicine held steady at 6%, while biology emerged as a relevant major with 5%. Since 2014, biology has seen a dramatic increase to 10%, and medicine to 8%, reflecting the rise of biotech and health tech unicorns.
As the startup ecosystem continues to develop and mature, we are seeing that founders are drawing from a wider array of expertise to tackle increasingly complex challenges, from AI and genomics to sustainable energy and fintech.
What will the future look like for unicorn founders?
While this diverse range of academic backgrounds present the array of industries producing unicorns, the need for business acumen is constant across all unicorns and points to why it has remained so popular.
For business schools and aspiring entrepreneurs, while technical skills remain crucial, the ability to integrate business strategy with innovation is becoming increasingly essential. As the data suggests, those who can master this balance are currently best positioned to lead the unicorns of tomorrow.
As the startup ecosystem continues to evolve, business schools are poised to play a key role in shaping the next wave of unicorn founders, instilling them with the diverse skills needed to thrive in the highly competitive landscape.
