Tejas Prabhune, a recent University of California, Berkeley graduate with a degree in electrical engineering and computer science, chose to launch a start-up rather than pursue traditional employment after completing his studies in May. Faced with options including returning to a start-up where he previously interned or seeking positions at established AI companies, Prabhune opted to cofound a machine-learning venture, citing favorable timing and available capital as key factors.

This individual choice reflects a broader trend among computer science graduates. According to a report by venture firm SignalFire, the proportion of 2025 computer science graduates identifying as founders has doubled to 6 percent from 2.9 percent in the 2022 cohort, based on analysis of LinkedIn profiles from over 10,000 bachelor’s recipients annually across 20 U.S. universities. The research highlights a notable shift toward entrepreneurship, driven in part by a challenging job market for entry-level software engineers.

Hiring data reveals a significant decline in opportunities for new graduates at major technology firms. Only about 13 percent of 2025 computer science graduates secured software engineering roles at the 12 largest tech companies, down from nearly 25 percent in 2022. SignalFire describes this trend as a “junior lockout,” with early-stage, venture-backed start-ups filling less than 3 percent of positions with entry-level hires—a sharp drop from 15 percent a decade ago.

Entrepreneurship hubs remain influential in this dynamic. Stanford University topped the list with nearly 17 percent of its 2025 computer science graduates becoming founders, followed by the California Institute of Technology and Harvard University, each exceeding 8 percent. Venture capital firms are increasingly active on campuses, offering accelerators and fellowships to support young entrepreneurs. Approximately 20 percent of the new graduate founders identified in SignalFire’s sample had already raised venture capital.

While many investors view the surge in student and recent graduate founders as a positive development amid the ongoing AI boom, some express reservations about founders’ motivations. Jeremy Fiance, managing partner at venture capital firm House Fund, which backs start-ups from UC Berkeley affiliates, observed an increase in founders lacking a clear purpose beyond launching a company. “I’ve also felt that more than ever what I see happening is students will start start-ups and they don’t even necessarily know why they are doing it,” Fiance said.

For Prabhune, the decision to pursue entrepreneurship represents a balance of risk and reward. He described the experience as providing agency, speed, and close collaboration with like-minded individuals, underscoring the appeal of founding a company despite inherent uncertainties.