"Of course, for every dropout's success story there are untold stories of disappointment and failure. Nathan Ensmenger, a University of Pennsylvania history professor who tracks the Silicon Valley labor market, says youngsters often are lured by high starting salaries and low barriers to entry. But not everyone can hit a startup grand slam, leaving many with fewer options as they try to climb the corporate ladder that quickly tops out for techies without a degree.

"If we were shooting a movie of this, there would be a disclaimer at the bottom, 'Do not attempt this at home,' " said Paul Graham, a startup investor and founder of Y Combinator. "It's an extreme example of a fundamental, underlying trend: If you can program, you don't have to play by the rules."

"We discourage people from starting startups too young. You're not a loser if you finish college first."