The Stanford Freshmen Who Think They Rule the World – $320 million in rent from tech companies on its campus in 2025.

Stanford University generates $320 million in rent from tech companies on its campus in 2025.

The university has become deeply enmeshed with Silicon Valley’s venture capital ecosystem, creating an exclusive environment where undergraduates and some graduate students are aggressively recruited, funded, and groomed to lead tech startups. This structural intertwining shapes not only the flow of capital but also the cultural norms influencing future industry leaders.

Students sometimes receive “pre-idea funding” and mentorship from VC firms like Sequoia and Founders Fund, and may gain access to secretive clubs and invite-only events. Stanford operates StartX, a venture fund incubating student companies, which claims these firms are three times more likely to reach $100 million valuations. Despite successes, the culture has instances of ethical lapses and fraud, with notable cases including alumni linked to Theranos and crypto schemes. University presidents past and present express concern over pressure on students and the myth of the “brilliant dropout” founder, emphasizing that connections often outweigh merit.

One of the dirty truths about Silicon Valley is that most VCs suck at their job. About 2 percent of VC firms generate 95 percent of the industry’s returns. The average VC firm does not outperform the market. And many of them seem to be simply guessing—or, more accurately, going wherever they see a group headed.

“We’ve lost the moral compass for what we invest into,” Blank told me, sitting in a courtyard in the shadow of the business school. “We’ve lost the sense of shame and the sense of purpose.”

The Stanford Freshmen Who Think They Rule the World
By Theo Baker, The Atlantic