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#436977 The Top 100 AI Startups Out There Now, ...

New drug therapies for a range of chronic diseases. Defenses against various cyber attacks. Technologies to make cities work smarter. Weather and wildfire forecasts that boost safety and reduce risk. And commercial efforts to monetize so-called deepfakes.

What do all these disparate efforts have in common? They’re some of the solutions that the world’s most promising artificial intelligence startups are pursuing.

Data research firm CB Insights released its much-anticipated fourth annual list of the top 100 AI startups earlier this month. The New York-based company has become one of the go-to sources for emerging technology trends, especially in the startup scene.

About 10 years ago, it developed its own algorithm to assess the health of private companies using publicly-available information and non-traditional signals (think social media sentiment, for example) thanks to more than $1 million in grants from the National Science Foundation.

It uses that algorithm-generated data from what it calls a company’s Mosaic score—pulling together information on market trends, money, and momentum—along with other details ranging from patent activity to the latest news analysis to identify the best of the best.

“Our final list of companies is a mix of startups at various stages of R&D and product commercialization,” said Deepashri Varadharajanis, a lead analyst at CB Insights, during a recent presentation on the most prominent trends among the 2020 AI 100 startups.

About 10 companies on the list are among the world’s most valuable AI startups. For instance, there’s San Francisco-based Faire, which has raised at least $266 million since it was founded just three years ago. The company offers a wholesale marketplace that uses machine learning to match local retailers with goods that are predicted to sell well in their specific location.

Image courtesy of CB Insights
Funding for AI in Healthcare
Another startup valued at more than $1 billion, referred to as a unicorn in venture capital speak, is Butterfly Network, a company on the East Coast that has figured out a way to turn a smartphone phone into an ultrasound machine. Backed by $350 million in private investments, Butterfly Network uses AI to power the platform’s diagnostics. A more modestly funded San Francisco startup called Eko is doing something similar for stethoscopes.

In fact, there are more than a dozen AI healthcare startups on this year’s AI 100 list, representing the most companies of any industry on the list. In total, investors poured about $4 billion into AI healthcare startups last year, according to CB Insights, out of a record $26.6 billion raised by all private AI companies in 2019. Since 2014, more than 4,300 AI startups in 80 countries have raised about $83 billion.

One of the most intensive areas remains drug discovery, where companies unleash algorithms to screen potential drug candidates at an unprecedented speed and breadth that was impossible just a few years ago. It has led to the discovery of a new antibiotic to fight superbugs. There’s even a chance AI could help fight the coronavirus pandemic.

There are several AI drug discovery startups among the AI 100: San Francisco-based Atomwise claims its deep convolutional neural network, AtomNet, screens more than 100 million compounds each day. Cyclica is an AI drug discovery company in Toronto that just announced it would apply its platform to identify and develop novel cannabinoid-inspired drugs for neuropsychiatric conditions such as bipolar disorder and anxiety.

And then there’s OWKIN out of New York City, a startup that uses a type of machine learning called federated learning. Backed by Google, the company’s AI platform helps train algorithms without sharing the necessary patient data required to provide the sort of valuable insights researchers need for designing new drugs or even selecting the right populations for clinical trials.

Keeping Cyber Networks Healthy
Privacy and data security are the focus of a number of AI cybersecurity startups, as hackers attempt to leverage artificial intelligence to launch sophisticated attacks while also trying to fool the AI-powered systems rapidly coming online.

“I think this is an interesting field because it’s a bit of a cat and mouse game,” noted Varadharajanis. “As your cyber defenses get smarter, your cyber attacks get even smarter, and so it’s a constant game of who’s going to match the other in terms of tech capabilities.”

Few AI cybersecurity startups match Silicon Valley-based SentinelOne in terms of private capital. The company has raised more than $400 million, with a valuation of $1.1 billion following a $200 million Series E earlier this year. The company’s platform automates what’s called endpoint security, referring to laptops, phones, and other devices at the “end” of a centralized network.

Fellow AI 100 cybersecurity companies include Blue Hexagon, which protects the “edge” of the network against malware, and Abnormal Security, which stops targeted email attacks, both out of San Francisco. Just down the coast in Los Angeles is Obsidian Security, a startup offering cybersecurity for cloud services.

Deepfakes Get a Friendly Makeover
Deepfakes of videos and other types of AI-manipulated media where faces or voices are synthesized in order to fool viewers or listeners has been a different type of ongoing cybersecurity risk. However, some firms are swapping malicious intent for benign marketing and entertainment purposes.

Now anyone can be a supermodel thanks to Superpersonal, a London-based AI startup that has figured out a way to seamlessly swap a user’s face onto a fashionista modeling the latest threads on the catwalk. The most obvious use case is for shoppers to see how they will look in a particular outfit before taking the plunge on a plunging neckline.

Another British company called Synthesia helps users create videos where a talking head will deliver a customized speech or even talk in a different language. The startup’s claim to fame was releasing a campaign video for the NGO Malaria Must Die showing soccer star David Becham speak in nine different languages.

There’s also a Seattle-based company, Wellsaid Labs, which uses AI to produce voice-over narration where users can choose from a library of digital voices with human pitch, emphasis, and intonation. Because every narrator sounds just a little bit smarter with a British accent.

AI Helps Make Smart Cities Smarter
Speaking of smarter: A handful of AI 100 startups are helping create the smart city of the future, where a digital web of sensors, devices, and cloud-based analytics ensure that nobody is ever stuck in traffic again or without an umbrella at the wrong time. At least that’s the dream.

A couple of them are directly connected to Google subsidiary Sidewalk Labs, which focuses on tech solutions to improve urban design. A company called Replica was spun out just last year. It’s sort of SimCity for urban planning. The San Francisco startup uses location data from mobile phones to understand how people behave and travel throughout a typical day in the city. Those insights can then help city governments, for example, make better decisions about infrastructure development.

Denver-area startup AMP Robotics gets into the nitty gritty details of recycling by training robots on how to recycle trash, since humans have largely failed to do the job. The U.S. Environmental Protection Agency estimates that only about 30 percent of waste is recycled.

Some people might complain that weather forecasters don’t even do that well when trying to predict the weather. An Israeli AI startup, ClimaCell, claims it can forecast rain block by block. While the company taps the usual satellite and ground-based sources to create weather models, it has developed algorithms to analyze how precipitation and other conditions affect signals in cellular networks. By analyzing changes in microwave signals between cellular towers, the platform can predict the type and intensity of the precipitation down to street level.

And those are just some of the highlights of what some of the world’s most promising AI startups are doing.

“You have companies optimizing mining operations, warehouse logistics, insurance, workflows, and even working on bringing AI solutions to designing printed circuit boards,” Varadharajanis said. “So a lot of creative ways in which companies are applying AI to solve different issues in different industries.”

Image Credit: Butterfly Network Continue reading

Posted in Human Robots

#436578 AI Just Discovered a New Antibiotic to ...

Penicillin, one of the greatest discoveries in the history of medicine, was a product of chance.

After returning from summer vacation in September 1928, bacteriologist Alexander Fleming found a colony of bacteria he’d left in his London lab had sprouted a fungus. Curiously, wherever the bacteria contacted the fungus, their cell walls broke down and they died. Fleming guessed the fungus was secreting something lethal to the bacteria—and the rest is history.

Fleming’s discovery of penicillin and its later isolation, synthesis, and scaling in the 1940s released a flood of antibiotic discoveries in the next few decades. Bacteria and fungi had been waging an ancient war against each other, and the weapons they’d evolved over eons turned out to be humanity’s best defense against bacterial infection and disease.

In recent decades, however, the flood of new antibiotics has slowed to a trickle.

Their development is uneconomical for drug companies, and the low-hanging fruit has long been picked. We’re now facing the emergence of strains of super bacteria resistant to one or more antibiotics and an aging arsenal to fight them with. Gone unchallenged, an estimated 700,000 deaths worldwide due to drug resistance could rise to as many as 10 million in 2050.

Increasingly, scientists warn the tide is turning, and we need a new strategy to keep pace with the remarkably quick and boundlessly creative tactics of bacterial evolution.

But where the golden age of antibiotics was sparked by serendipity, human intelligence, and natural molecular weapons, its sequel may lean on the uncanny eye of artificial intelligence to screen millions of compounds—and even design new ones—in search of the next penicillin.

Hal Discovers a Powerful Antibiotic
In a paper published this week in the journal, Cell, MIT researchers took a step in this direction. The team says their machine learning algorithm discovered a powerful new antibiotic.

Named for the AI in 2001: A Space Odyssey, the antibiotic, halicin, successfully wiped out dozens of bacterial strains, including some of the most dangerous drug-resistant bacteria on the World Health Organization’s most wanted list. The bacteria also failed to develop resistance to E. coli during a month of observation, in stark contrast to existing antibiotic ciprofloxacin.

“In terms of antibiotic discovery, this is absolutely a first,” Regina Barzilay, a senior author on the study and computer science professor at MIT, told The Guardian.

The algorithm that discovered halicin was trained on the molecular features of 2,500 compounds. Nearly half were FDA-approved drugs, and another 800 naturally occurring. The researchers specifically tuned the algorithm to look for molecules with antibiotic properties but whose structures would differ from existing antibiotics (as halicin’s does). Using another machine learning program, they screened the results for those likely to be safe for humans.

Early study suggests halicin attacks the bacteria’s cell membranes, disrupting their ability to produce energy. Protecting the cell membrane from halicin might take more than one or two genetic mutations, which could account for its impressive ability to prevent resistance.

“I think this is one of the more powerful antibiotics that has been discovered to date,” James Collins, an MIT professor of bioengineering and senior author told The Guardian. “It has remarkable activity against a broad range of antibiotic-resistant pathogens.”

Beyond tests in petri-dish bacterial colonies, the team also tested halicin in mice. The antibiotic cleared up infections of a strain of bacteria resistant to all known antibiotics in a day. The team plans further study in partnership with a pharmaceutical company or nonprofit, and they hope to eventually prove it safe and effective for use in humans.

This last bit remains the trickiest step, given the cost of getting a new drug approved. But Collins hopes algorithms like theirs will help. “We could dramatically reduce the cost required to get through clinical trials,” he told the Financial Times.

A Universe of Drugs Awaits
The bigger story may be what happens next.

How many novel antibiotics await discovery, and how far can AI screening take us? The initial 6,000 compounds scanned by Barzilay and Collins’s team is a drop in the bucket.

They’ve already begun digging deeper by setting the algorithm loose on 100 million molecules from an online library of 1.5 billion compounds called the ZINC15 database. This first search took three days and turned up 23 more candidates that, like halicin, differ structurally from existing antibiotics and may be safe for humans. Two of these—which the team will study further—appear to be especially powerful.

Even more ambitiously, Barzilay hopes the approach can find or even design novel antibiotics that kill bad bacteria with alacrity while sparing the good guys. In this way, a round of antibiotics would cure whatever ails you without taking out your whole gut microbiome in the process.

All this is part of a larger movement to use machine learning algorithms in the long, expensive process of drug discovery. Other players in the area are also training AI on the vast possibility space of drug-like compounds. Last fall, one of the leaders in the area, Insilico, was challenged by a partner to see just how fast their method could do the job. The company turned out a new a proof-of-concept drug candidate in only 46 days.

The field is still developing, however, and it has yet to be seen exactly how valuable these approaches will be in practice. Barzilay is optimistic though.

“There is still a question of whether machine-learning tools are really doing something intelligent in healthcare, and how we can develop them to be workhorses in the pharmaceuticals industry,” she said. “This shows how far you can adapt this tool.”

Image Credit: Halicin (top row) prevented the development of antibiotic resistance in E. coli, while ciprofloxacin (bottom row) did not. Collins Lab at MIT Continue reading

Posted in Human Robots

#436573 This Week’s Awesome Tech Stories From ...

ARTIFICIAL INTELLIGENCE
The Messy, Secretive Reality Behind OpenAI’s Bid to Save the World
Karen Hao | MIT Technology Review
“The AI moonshot was founded in the spirit of transparency. This is the inside story of how competitive pressure eroded that idealism. …Yet OpenAI is still a bastion of talent and cutting-edge research, filled with people who are sincerely striving to work for the benefit of humanity. In other words, it still has the most important elements, and there’s still time for it to change.”

ROBOTICS
3D Printed Four-Legged Robot Is Ready to Take on Spot—at a Lower Price
Luke Dormehl | Digital Trends
“[Ghost Robotics and Origin] have teamed up to develop a new line of robots, called the Spirit Series, which offer impressively capable four-legged robots, but which can be printed using additive manufacturing at a fraction of the cost and speed of traditional manufacturing approaches.”

PRIVACY
The Studs on This Punk Bracelet Are Actually Microphone-Jamming Ultrasonic Speakers
Andrew Liszewski | Gizmodo
“You can prevent facial recognition cameras from identifying you by wearing face paint, masks, or sometimes just a pair of oversized sunglasses. Keeping conversations private from an ever-growing number of microphone-equipped devices isn’t quite as easy, but researchers have created what could be the first wearable that actually helps increase your privacy.”

TRANSPORTATION
Iron Man Dreams Are Closer to Becoming a Reality Thanks to This New Jetman Dubai Video
Julia Alexander | The Verge
“Tony Stark may have destroyed his Iron Man suits in Iron Man 3 (only to bring out a whole new line in Avengers: Age of Ultron), but Jetman Dubai’s Iron Man-like dreams of autonomous human flight are realer than ever. A new video published by the company shows pilot Vince Reffet using a jet-powered, carbon-fiber suit to launch off the ground and fly 6,000 feet in the air.”

TECHNOLOGY
Wikipedia Is the Last Best Place on the Internet
Richard Cooke | Wired
“More than an encyclopedia, Wikipedia has become a community, a library, a constitution, an experiment, a political manifesto—the closest thing there is to an online public square. It is one of the few remaining places that retains the faintly utopian glow of the early World Wide Web.”

SCIENCE
The Very Large Array Will Search for Evidence of Extraterrestrial Life
Georgina Torbet | Digital Trends
“To begin the project, an interface will be added to the NRAO’s Very Large Array (VLA) in New Mexico to search for events or structures which could indicate the presence of life, such as laser beams, structures built around stars, indications of constructed satellites, or atmospheric chemicals produced by industry.”

SCIENCE FICTION
The Terrible Truth About Star Trek’s Transporters
Cassidy Ward | SyFy Wire
“The fact that you are scanned, deconstructed, and rebuilt almost immediately thereafter only creates the illusion of continuity. In reality, you are killed and then something exactly like you is born, elsewhere. There’s a whole philosophical debate about whether this really matters. If the person constructed on the other end is identical to you, down to the atomic level, is there any measurable difference from it being actually you?”

Image Credit: Samuel Giacomelli / Unsplash Continue reading

Posted in Human Robots

#436426 Video Friday: This Robot Refuses to Fall ...

Video Friday is your weekly selection of awesome robotics videos, collected by your Automaton bloggers. We’ll also be posting a weekly calendar of upcoming robotics events for the next few months; here’s what we have so far (send us your events!):

Robotic Arena – January 25, 2020 – Wrocław, Poland
DARPA SubT Urban Circuit – February 18-27, 2020 – Olympia, Wash., USA
Let us know if you have suggestions for next week, and enjoy today’s videos.

In case you somehow missed the massive Skydio 2 review we posted earlier this week, the first batches of the drone are now shipping. Each drone gets a lot of attention before it goes out the door, and here’s a behind-the-scenes clip of the process.

[ Skydio ]

Sphero RVR is one of the 15 robots on our robot gift guide this year. Here’s a new video Sphero just released showing some of the things you can do with the robot.

[ RVR ]

NimbRo-OP2 has some impressive recovery skills from the obligatory research-motivated robot abuse.

[ NimbRo ]

Teams seeking to qualify for the Virtual Urban Circuit of the Subterranean Challenge can access practice worlds to test their approaches prior to submitting solutions for the competition. This video previews three of the practice environments.

[ DARPA SubT ]

Stretchable skin-like robots that can be rolled up and put in your pocket have been developed by a University of Bristol team using a new way of embedding artificial muscles and electrical adhesion into soft materials.

[ Bristol ]

Happy Holidays from ABB!

Helping New York celebrate the festive season, twelve ABB robots are interacting with visitors to Bloomingdale’s iconic holiday celebration at their 59th Street flagship store. ABB’s robots are the main attraction in three of Bloomingdale’s twelve-holiday window displays at Lexington and Third Avenue, as ABB demonstrates the potential for its robotics and automation technology to revolutionize visual merchandising and make the retail experience more dynamic and whimsical.

[ ABB ]

We introduce pelican eel–inspired dual-morphing architectures that embody quasi-sequential behaviors of origami unfolding and skin stretching in response to fluid pressure. In the proposed system, fluid paths were enclosed and guided by a set of entirely stretchable origami units that imitate the morphing principle of the pelican eel’s stretchable and foldable frames. This geometric and elastomeric design of fluid networks, in which fluid pressure acts in the direction that the whole body deploys first, resulted in a quasi-sequential dual-morphing response. To verify the effectiveness of our design rule, we built an artificial creature mimicking a pelican eel and reproduced biomimetic dual-morphing behavior.

And here’s a real pelican eel:

[ Science Robotics ]

Delft Dynamics’ updated anti-drone system involves a tether, mid-air net gun, and even a parachute.

[ Delft Dynamics ]

Teleoperation is a great way of helping robots with complex tasks, especially if you can do it through motion capture. But what if you’re teleoperating a non-anthropomorphic robot? Columbia’s ROAM Lab is working on it.

[ Paper ] via [ ROAM Lab ]

I don’t know how I missed this video last year because it’s got a steely robot hand squeezing a cute lil’ chick.

[ MotionLib ] via [ RobotStart ]

In this video we present results of a trajectory generation method for autonomous overtaking of unexpected obstacles in a dynamic urban environment. In these settings, blind spots can arise from perception limitations. For example when overtaking unexpected objects on the vehicle’s ego lane on a two-way street. In this case, a human driver would first make sure that the opposite lane is free and that there is enough room to successfully execute the maneuver, and then it would cut into the opposite lane in order to execute the maneuver successfully. We consider the practical problem of autonomous overtaking when the coverage of the perception system is impaired due to occlusion.

[ Paper ]

New weirdness from Toio!

[ Toio ]

Palo Alto City Library won a technology innovation award! Watch to see how Senior Librarian Dan Lou is using Misty to enhance their technology programs to inspire and educate customers.

[ Misty Robotics ]

We consider the problem of reorienting a rigid object with arbitrary known shape on a table using a two-finger pinch gripper. Reorienting problem is challenging because of its non-smoothness and high dimensionality. In this work, we focus on solving reorienting using pivoting, in which we allow the grasped object to rotate between fingers. Pivoting decouples the gripper rotation from the object motion, making it possible to reorient an object under strict robot workspace constraints.

[ CMU ]

How can a mobile robot be a good pedestrian without bumping into you on the sidewalk? It must be hard for a robot to navigate in crowded environments since the flow of traffic follows implied social rules. But researchers from MIT developed an algorithm that teaches mobile robots to maneuver in crowds of people, respecting their natural behaviour.

[ Roboy Research Reviews ]

What happens when humans and robots make art together? In this awe-inspiring talk, artist Sougwen Chung shows how she “taught” her artistic style to a machine — and shares the results of their collaboration after making an unexpected discovery: robots make mistakes, too. “Part of the beauty of human and machine systems is their inherent, shared fallibility,” she says.

[ TED ]

Last month at the Cooper Union in New York City, IEEE TechEthics hosted a public panel session on the facts and misperceptions of autonomous vehicles, part of the IEEE TechEthics Conversations Series. The speakers were: Jason Borenstein from Georgia Tech; Missy Cummings from Duke University; Jack Pokrzywa from SAE; and Heather M. Roff from Johns Hopkins Applied Physics Laboratory. The panel was moderated by Mark A. Vasquez, program manager for IEEE TechEthics.

[ IEEE TechEthics ]

Two videos this week from Lex Fridman’s AI podcast: Noam Chomsky, and Whitney Cummings.

[ AI Podcast ]

This week’s CMU RI Seminar comes from Jeff Clune at the University of Wyoming, on “Improving Robot and Deep Reinforcement Learning via Quality Diversity and Open-Ended Algorithms.”

Quality Diversity (QD) algorithms are those that seek to produce a diverse set of high-performing solutions to problems. I will describe them and a number of their positive attributes. I will then summarize our Nature paper on how they, when combined with Bayesian Optimization, produce a learning algorithm that enables robots, after being damaged, to adapt in 1-2 minutes in order to continue performing their mission, yielding state-of-the-art robot damage recovery. I will next describe our QD-based Go-Explore algorithm, which dramatically improves the ability of deep reinforcement learning algorithms to solve previously unsolvable problems wherein reward signals are sparse, meaning that intelligent exploration is required. Go-Explore solves Montezuma’s Revenge, considered by many to be a major AI research challenge. Finally, I will motivate research into open-ended algorithms, which seek to innovate endlessly, and introduce our POET algorithm, which generates its own training challenges while learning to solve them, automatically creating a curricula for robots to learn an expanding set of diverse skills. POET creates and solves challenges that are unsolvable with traditional deep reinforcement learning techniques.

[ CMU RI ] Continue reading

Posted in Human Robots

#434772 Traditional Higher Education Is Losing ...

Should you go to graduate school? If so, why? If not, what are your alternatives? Millions of young adults across the globe—and their parents and mentors—find themselves asking these questions every year.

Earlier this month, I explored how exponential technologies are rising to meet the needs of the rapidly changing workforce.

In this blog, I’ll dive into a highly effective way to build the business acumen and skills needed to make the most significant impact in these exponential times.

To start, let’s dive into the value of graduate school versus apprenticeship—especially during this time of extraordinarily rapid growth, and the micro-diversification of careers.

The True Value of an MBA
All graduate schools are not created equal.

For complex technical trades like medicine, engineering, and law, formal graduate-level training provides a critical foundation for safe, ethical practice (until these trades are fully augmented by artificial intelligence and automation…).

For the purposes of today’s blog, let’s focus on the value of a Master in Business Administration (MBA) degree, compared to acquiring your business acumen through various forms of apprenticeship.

The Waning of Business Degrees
Ironically, business schools are facing a tough business problem. The rapid rate of technological change, a booming job market, and the digitization of education are chipping away at the traditional graduate-level business program.

The data speaks for itself.

The Decline of Graduate School Admissions
Enrollment in two-year, full-time MBA programs in the US fell by more than one-third from 2010 to 2016.

While in previous years, top business schools (e.g. Stanford, Harvard, and Wharton) were safe from the decrease in applications, this year, they also felt the waning interest in MBA programs.

Harvard Business School: 4.5 percent decrease in applications, the school’s biggest drop since 2005.
Wharton: 6.7 percent decrease in applications.
Stanford Graduate School: 4.6 percent decrease in applications.

Another signal of change began unfolding over the past week. You may have read news headlines about an emerging college admissions scam, which implicates highly selective US universities, sports coaches, parents, and students in a conspiracy to game the undergraduate admissions process.

Already, students are filing multibillion-dollar civil lawsuits arguing that the scheme has devalued their degrees or denied them a fair admissions opportunity.

MBA Graduates in the Workforce
To meet today’s business needs, startups and massive companies alike are increasingly hiring technologists, developers, and engineers in place of the MBA graduates they may have preferentially hired in the past.

While 85 percent of US employers expect to hire MBA graduates this year (a decrease from 91 percent in 2017), 52 percent of employers worldwide expect to hire graduates with a master’s in data analytics (an increase from 35 percent last year).

We’re also seeing the waning of MBA degree holders at the CEO level.

For decades, an MBA was the hallmark of upward mobility towards the C-suite of top companies.

But as exponential technologies permeate not only products but every part of the supply chain—from manufacturing and shipping to sales, marketing and customer service—that trend is changing by necessity.

Looking at the Harvard Business Review’s Top 100 CEOs in 2018 list, more CEOs on the list held engineering degrees than MBAs (34 held engineering degrees, while 32 held MBAs).

There’s much more to leading innovative companies than an advanced business degree.

How Are Schools Responding?
With disruption to the advanced business education system already here, some business schools are applying notes from their own innovation classes to brace for change.

Over the past half-decade, we’ve seen schools with smaller MBA programs shut their doors in favor of advanced degrees with more specialization. This directly responds to market demand for skills in data science, supply chain, and manufacturing.

Some degrees resemble the precise skills training of technical trades. Others are very much in line with the apprenticeship models we’ll explore next.

Regardless, this new specialization strategy is working and attracting more new students. Over the past decade (2006 to 2016), enrollment in specialized graduate business programs doubled.

Higher education is also seeing a preference shift toward for-profit trade schools, like coding boot camps. This shift is one of several forces pushing universities to adopt skill-specific advanced degrees.

But some schools are slow to adapt, raising the question: how and when will these legacy programs be disrupted? A survey of over 170 business school deans around the world showed that many programs are operating at a loss.

But if these schools are world-class business institutions, as advertised, why do they keep the doors open even while they lose money? The surveyed deans revealed an important insight: they keep the degree program open because of the program’s prestige.

Why Go to Business School?
Shorthand Credibility, Cognitive Biases, and Prestige
Regardless of what knowledge a person takes away from graduate school, attending one of the world’s most rigorous and elite programs gives grads external validation.

With over 55 percent of MBA applicants applying to just 6 percent of graduate business schools, we have a clear cognitive bias toward the perceived elite status of certain universities.

To the outside world, thanks to the power of cognitive biases, an advanced degree is credibility shorthand for your capabilities.

Simply passing through a top school’s filtration system means that you had some level of abilities and merits.

And startup success statistics tend to back up that perceived enhanced capability. Let’s take, for example, universities with the most startup unicorn founders (see the figure below).

When you consider the 320+ unicorn startups around the world today, these numbers become even more impressive. Stanford’s 18 unicorn companies account for over 5 percent of global unicorns, and Harvard is responsible for producing just under 5 percent.

Combined, just these two universities (out of over 5,000 in the US, and thousands more around the world) account for 1 in 10 of the billion-dollar private companies in the world.

By the numbers, the prestigious reputation of these elite business programs has a firm basis in current innovation success.

While prestige may be inherent to the degree earned by graduates from these business programs, the credibility boost from holding one of these degrees is not a guaranteed path to success in the business world.

For example, you might expect that the Harvard School of Business or Stanford Graduate School of Business would come out on top when tallying up the alma maters of Fortune 500 CEOs.

It turns out that the University of Wisconsin-Madison leads the business school pack with 14 CEOs to Harvard’s 12. Beyond prestige, the success these elite business programs see translates directly into cultivating unmatched networks and relationships.

Relationships
Graduate schools—particularly at the upper echelon—are excellent at attracting sharp students.

At an elite business school, if you meet just five to ten people with extraordinary skill sets, personalities, ideas, or networks, then you have returned your $200,000 education investment.

It’s no coincidence that some 40 percent of Silicon Valley venture capitalists are alumni of either Harvard or Stanford.

From future investors to advisors, friends, and potential business partners, relationships are critical to an entrepreneur’s success.

Apprenticeships
As we saw above, graduate business degree programs are melting away in the current wave of exponential change.

With an increasing $1.5 trillion in student debt, there must be a more impactful alternative to attending graduate school for those starting their careers.

When I think about the most important skills I use today as an entrepreneur, writer, and strategic thinker, they didn’t come from my decade of graduate school at Harvard or MIT… they came from my experiences building real technologies and companies, and working with mentors.

Apprenticeship comes in a variety of forms; here, I’ll cover three top-of-mind approaches:

Real-world business acumen via startup accelerators
A direct apprenticeship model
The 6 D’s of mentorship

Startup Accelerators and Business Practicum
Let’s contrast the shrinking interest in MBA programs with applications to a relatively new model of business education: startup accelerators.

Startup accelerators are short-term (typically three to six months), cohort-based programs focusing on providing startup founders with the resources (capital, mentorship, relationships, and education) needed to refine their entrepreneurial acumen.

While graduate business programs have been condensing, startup accelerators are alive, well, and expanding rapidly.

In the 10 years from 2005 (when Paul Graham founded Y Combinator) through 2015, the number of startup accelerators in the US increased by more than tenfold.

The increase in startup accelerator activity hints at a larger trend: our best and brightest business minds are opting to invest their time and efforts in obtaining hands-on experience, creating tangible value for themselves and others, rather than diving into the theory often taught in business school classrooms.

The “Strike Force” Model
The Strike Force is my elite team of young entrepreneurs who work directly with me across all of my companies, travel by my side, sit in on every meeting with me, and help build businesses that change the world.

Previous Strike Force members have gone on to launch successful companies, including Bold Capital Partners, my $250 million venture capital firm.

Strike Force is an apprenticeship for the next generation of exponential entrepreneurs.

To paraphrase my good friend Tony Robbins: If you want to short-circuit the video game, find someone who’s been there and done that and is now doing something you want to one day do.

Every year, over 500,000 apprentices in the US follow this precise template. These apprentices are learning a craft they wish to master, under the mentorship of experts (skilled metal workers, bricklayers, medical technicians, electricians, and more) who have already achieved the desired result.

What if we more readily applied this model to young adults with aspirations of creating massive value through the vehicles of entrepreneurship and innovation?

For the established entrepreneur: How can you bring young entrepreneurs into your organization to create more value for your company, while also passing on your ethos and lessons learned to the next generation?

For the young, driven millennial: How can you find your mentor and convince him or her to take you on as an apprentice? What value can you create for this person in exchange for their guidance and investment in your professional development?

The 6 D’s of Mentorship
In my last blog on education, I shared how mobile device and internet penetration will transform adult literacy and basic education. Mobile phones and connectivity already create extraordinary value for entrepreneurs and young professionals looking to take their business acumen and skill set to the next level.

For all of human history up until the last decade or so, if you wanted to learn from the best and brightest in business, leadership, or strategy, you either needed to search for a dated book that they wrote at the local library or bookstore, or you had to be lucky enough to meet that person for a live conversation.

Now you can access the mentorship of just about any thought leader on the planet, at any time, for free.

Thanks to the power of the internet, mentorship has digitized, demonetized, dematerialized, and democratized.

What do you want to learn about?

Investing? Leadership? Technology? Marketing? Project management?

You can access a near-infinite stream of cutting-edge tools, tactics, and lessons from thousands of top performers from nearly every field—instantaneously, and for free.

For example, every one of Warren Buffett’s letters to his Berkshire Hathaway investors over the past 40 years is available for free on a device that fits in your pocket.

The rise of audio—particularly podcasts and audiobooks—is another underestimated driving force away from traditional graduate business programs and toward apprenticeships.

Over 28 million podcast episodes are available for free. Once you identify the strong signals in the noise, you’re still left with thousands of hours of long-form podcast conversation from which to learn valuable lessons.

Whenever and wherever you want, you can learn from the world’s best. In the future, mentorship and apprenticeship will only become more personalized. Imagine accessing a high-fidelity, AI-powered avatar of Bill Gates, Richard Branson, or Arthur C. Clarke (one of my early mentors) to help guide you through your career.

Virtual mentorship and coaching are powerful education forces that are here to stay.

Bringing It All Together
The education system is rapidly changing. Traditional master’s programs for business are ebbing away in the tides of exponential technologies. Apprenticeship models are reemerging as an effective way to train tomorrow’s leaders.

In a future blog, I’ll revisit the concept of apprenticeships and other effective business school alternatives.

If you are a young, ambitious entrepreneur (or the parent of one), remember that you live in the most abundant time ever in human history to refine your craft.

Right now, you have access to world-class mentorship and cutting-edge best-practices—literally in the palm of your hand. What will you do with this extraordinary power?

Join Me
Abundance-Digital Online Community: I’ve created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital is my ‘onramp’ for exponential entrepreneurs – those who want to get involved and play at a higher level. Click here to learn more.

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