Gen Z Transforms Venture Capital: New Generation Takes Charge
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Based on a report from ChinaVenture News, the younger generation, often referred to as “Gen Z,” is beginning to make its mark in the venture capital (VC) industry.
In September 2020, Meagan Loyst, then 23 years old and fresh out of college, stepped into the VC world. She posted a tweet and wrote a blog, aiming to connect with fellow young investors. As her post gained traction, many young investors reached out to her, seeking connections and advice. This led to the creation of a Slack group named “Gen Z VCs,” which has since grown to over 27,000 members. Loyst’s goal is to connect aspiring Gen Z founders with like-minded young investors, amplifying the voices of her generation within the VC ecosystem.
A glance at Forbes’ 30 Under 30 investor list reveals the rapid rise of these young talents:
- David Brillembourg Jr, 24, dropped out of NYU to found Dune Ventures and has raised over $100 million to date.
- Chas Pulido, 25, founded Alix Ventures, a healthcare-focused firm, and has already invested in 15 projects.
- Morgan Cheatham, 27, became the youngest director at Bessemer Venture Partners.
Gen Z is no longer just observing the VC game—they’re playing it.
Gen Z's Unconventional Path in Venture Capital
Traditionally, the venture capital world has been dominated by an “old boys’ club.” Young entrants typically start as analysts, working alongside seasoned veterans, gradually learning the ropes and building industry knowledge until they can spot promising projects and eventually rise to partner status—a process that could take decades.
However, Gen Z has grown up differently. They’ve been influenced by shows like “Silicon Valley” and “The Social Network,” and have followed tech leaders like Elon Musk and Marc Andreessen on platforms like TechCrunch and YouTube. This exposure has made venture capital a mainstream concept for them, and they’re entering the industry with a different mindset, aiming to reach the top from the start.
For instance, Alana Goyal, now 25, founded her own VC firm, Basecase Capital, three years ago in San Francisco. She now manages three funds totaling $99 million and has become an early partner for young tech professionals and scientists. Goyal notes that these young talents often don’t have access to older investors—and aren’t interested in working with them. Instead, they turn to her when they’re ready to launch their startups. Basecase Capital has already invested in over 20 startups, and Goyal has done it all on her own, without any partners.
Rex Woodbury of Index Ventures decided to start his own VC firm before turning 30. He sees the intersection of Gen Z’s digital-native behaviors and emerging technologies like AI and MR as fertile ground for early-stage investments in the coming years. Despite being a new firm, it has already invested in nearly 10 startups, largely due to the success of Woodbury’s newsletter, “Digital Native,” which he sends out every Wednesday. This content marketing approach has helped him connect with many entrepreneurs, emphasizing the importance of finding people with expertise and the ability to build relationships over just having a big company name.
Where Does the Money Come From?
For young, fresh-faced investors, the question arises: Where does their investment capital come from?
For Adarsh Bhatt and David Ongchoco, partners at Comma Capital, it was a natural progression. Both were deeply involved in tech from a young age, meeting at the University of Pennsylvania, where they realized they could be valuable partners to budding entrepreneurs. After graduating, they joined high-growth tech companies and began informally advising and investing in their peers’ ventures. Their network grew, leading to the launch of their first $5.5 million fund, with backing from well-known VCs, tech executives, and small family offices. Last year, they raised a second $10 million fund—all by the age of 24.
The SEC’s policy changes in 2020, which allowed more individuals to qualify as accredited investors based on expertise rather than wealth, also opened the door for Gen Z to start their own funds and invest in their friends’ ventures.
Reforming the Workplace or Just a Trend?
The stories of these young investors highlight several key characteristics of Gen Z VCs: they are digital natives who excel at using online platforms and social media to build and maintain networks, and many of them are both investors and influencers. They focus on areas like the creator economy, fintech, enterprise SaaS, social gaming, edtech, and D2C consumer products.
Their youth gives them a fresh perspective on investment. For example, David Brillembourg Jr focuses on gaming because he grew up playing games and still plays daily. Molly Fowler, CEO of Dorm Room Fund, which seeks out potential investors in college, notes that unlike experienced investors, Gen Z VCs don’t get stuck in conventional thinking and are often more daring in their decisions—sometimes reaping significant rewards.
However, not everyone is optimistic. Venture capital is a long game, and while the market may be friendly during booms, it’s less forgiving during downturns. Some VCs have struggled to raise new funds in recent years. Chris Douvos, a partner at the fund of funds Ahoy Capital, warns that venture capital requires patience and commitment, which might be a challenge for young, energetic individuals who must focus on a single fund for 15 to 20 years.
Some Gen Z investors themselves resist being labeled as part of this trend. As one young investor wrote in TechCrunch, “I refuse to replace experience and principle-driven investment with youth and trendiness… I do not want my career, fundraising, or reputation to be built on a false narrative that portrays me as ‘younger’ or ‘more rebellious’ than older investors.”
This reflects a valid concern: confidence, group identity, and youth cannot replace knowledge and experience. The 10,000-hour rule applies to Gen Z VCs as well. It will take another decade, and a sufficient number of successful exits, to truly understand what these young investors can achieve.
Only time will tell.
