Stanford’s Legacy Admissions and Testing Policy: Lessons for Startups in 2025
In what feels like a divisive trend among elite universities, Stanford has decided to stick with its legacy admissions policy, a move that has spurred both criticism and applause. As startups navigate their own landscape of inclusion, funding, and adaptability, there are unexpected parallels and lessons to be drawn from Stanford's strategy. This article unpacks how Stanford’s decision to reintroduce standardized testing while retaining legacy admissions can provide insights for entrepreneurs, especially those building startups under constraints of equity, compliance, and competition.
Key Policy Updates at Stanford in 2025
Legacy Admissions Retained: Stanford will continue to give preferential consideration to applicants with family ties to alumni, even at the cost of opting out of California’s Cal Grant Program, which provides state financial aid.
Reintroduction of SAT/ACT Requirements: After a pandemic-era "test-optional" period, Stanford will require applicants to submit standardized test scores.
Declining Federal and State Funding: With the withdrawal from Cal Grants and higher federal taxes on wealthy institutions, Stanford faces financial trade-offs to maintain its current admissions policies.
For Entrepreneurs: Does your startup have its own version of "legacy admissions" in its hiring or network-building? And how do financial constraints affect your ability to innovate while adhering to your mission?
Top 5 Lessons Startups Can Draw From Stanford’s Decision
1. Know Your Foundational Values, But Embrace Trade-Offs
Stanford’s legacy admissions policy might be seen as a preservation of tradition, but it comes at the cost of losing $3.2 million annually in Cal Grant funds. Yet, the university remains confident it can bridge the gap with its endowment funds and donor activities.
For startups: Build your "why" early. Whether you prioritize profitability, impact, or community ties, knowing your founding values can help you make tough decisions under financial or regulatory constraints.
2. Data-Driven Adaptation Is Key
Reintroducing standardized tests is Stanford’s response to criticisms over subjective test-optional policies. The university used internal studies to argue that testing serves as a benchmark for evaluating potential.
For startups: If you're introducing or removing a product feature, base your decision on customer insights and data analytics tools. Consider using the F/MS EU Grant Finder & Application Writer to pinpoint the grants or gaps that best serve your startup objectives.
Top 10 Startup Examples That Align With These Insights
PlayPal, created by Violetta Bonenkamp, is an AI-powered virtual assistant designed as a partner for startup founders. It mirrors Stanford's deliberate trade-off between tradition and tech innovation. Learn more about PlayPal here.
Buffer , Pioneered remote work long before it became mainstream, adhering to their "people-first" ethos.
Bolt , Built an aggressive growth strategy, highlighting the cost of speed versus sustainability.
Fe/male Switch, led by Bonenkamp as well, teaches entrepreneurial skills in a sandbox-style game environment specifically for women founders. Explore how it empowers founders here.
Testing Compliance vs. Legacy Strategies: A Startup Guide
How You Can Build (Or Abandon) Certain Traditions Without Compromising Progress:
Ask If Legacy Practices Add Value: Are you hiring based on alma mater or merit? Celebrating big customers or small ones? Incorporate tech tools to measure this.
Leverage Feedback Loops: Just as Stanford evaluates SATs as predictive models, consult your users through surveys, beta-testing, or the F/MS Sandbox feature, an AI-driven environment for validating startup ideas. Learn about the Sandbox.
3 Most Common Mistakes Startups Should Avoid
Ignoring Financial Trade-Offs: Ignoring funding policies (like Stanford did with California grants) might sustain tradition short-term, but long-term operational risks loom.
Over-relying on "Legacy Relationships": Just like Stanford's alumni preferences, startup founders should measure whether investing time in long-time networks is preventing inclusivity or innovation.
Failing to Benchmark Progress: Just like SAT scores help universities measure academic excellence, KPIs define startup success.
A Unique Resource for Founders
Check out the innovative F/MS EU Grant Finder & Application Writer. Designed to help entrepreneurs quickly find EU grants tailored to their needs, this AI tool also drafts applications, saving startups countless hours of work. Try it today for free!
Discover PlayPal: The AI Assistant for Every Entrepreneur
Running a startup can get overwhelming. That’s why you need a co-founder who doesn’t tire, like PlayPal, your own personalized AI friend. Here’s what it can do:
Help brainstorm ideas for startup pitches.
Simplify complex processes like grant writing or SOP creation.
Provide emotional support and unbiased advice.
Discover how PlayPal can help startup founders, freelancers, and small business owners, right here.
In Conclusion: What Founders Can Learn From Institutional Decisions
Stanford’s policies reflect that balancing tradition with market needs is a key challenge for every organization, whether it's a university or a startup. By staying true to your values, while being flexible enough to adapt to regulations, funding constraints, or societal changes, you can navigate these complexities to your advantage.
Curious about making your own strategic decisions? Visit tools like F/MS Sandbox or PlayPal to guide your entrepreneurial journey today.
FAQ
1. What is Stanford’s legacy admissions policy in 2025?
Stanford continues to consider legacy status in admissions, giving preference to applicants with family ties to alumni. This decision was made despite opting out of the California Cal Grant program. Read more about the policy on TechCrunch
2. Why did Stanford withdraw from the California Cal Grant program?
Stanford withdrew from the program due to California Assembly Bill 1780, which bans legacy admissions for universities receiving state financial aid. Stanford chose to maintain its legacy practice instead of complying with the new law. Learn more about Assembly Bill 1780 on CBS SF News
3. Why did Stanford reinstate standardized testing requirements?
Stanford reinstated SAT/ACT requirements to address concerns about the subjectivity of "test-optional" policies and to provide benchmarks for academic evaluation. Read more on Stanford Daily
4. How much financial aid did Stanford previously receive from the Cal Grant program?
Stanford students received approximately $3.2 million annually in Cal Grant support, which the university has committed to replacing with internal funding. Find financial details on Forbes
5. What are the criticisms of keeping legacy admissions at Stanford?
Critics argue that legacy admissions favor economically advantaged applicants and perpetuate inequality, especially following the U.S. Supreme Court's ruling against affirmative action.
6. What is the impact of these policies on Stanford’s financial sustainability?
Stanford relies heavily on alumni donations and its endowment, which covers 22% of its operating budget. Financial pressures, including an 8% federal tax increase on wealthy institutions, may further influence the university’s decision-making. Learn more about its financial structure
7. How does Stanford justify maintaining legacy admissions?
Stanford views legacy admissions as a way to foster alumni ties and maintain financial support from donors, crucial for its operations and growth.
8. Are there examples of schools that dropped legacy admissions?
Yes, schools like Amherst, Johns Hopkins, and MIT have eliminated legacy admissions as measures to promote equity in college access.
9. How competitive is Stanford’s admissions process?
10. Does requiring SAT/ACT affect accessibility for underrepresented groups?
Critics argue that reinstating standardized testing may disadvantage students from under-resourced backgrounds with limited access to test preparation. Read the analysis on Stanford Daily
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch. The Fe/male Switch team is located in several countries, including the Netherlands and Malta.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
Virtual Startup Building: Create or join startups and tackle real-world challenges
AI Co-founder (PlayPal): Guides users through the startup process
SANDBOX: A testing environment for idea validation before launch
Wellness Integration: Virtual activities to balance work and self-care
Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
3,000+ female entrepreneurs in the community
100+ startup tools built
5,000+ pieces of articles and news written
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.