#7: The Next Wave of Venture Capitalists: Gen Z |
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๐ Hello, everyone!
I hope you are all well, and you have some interesting deals on the table.
I'm thrilled to bring you the latest episode of the VC Stack newsletter, which dives deep into the world of Gen Z venture capitalists.
Unfortunately, I am a millennial myself, but it is so exciting to see this new generation of investors making waves in the industry and bringing fresh perspectives to the table. In this episode, we'll explore the rise of Gen Z VCs, their unique approach to investing, and the impact they're having on the startup ecosystem.
We are also really excited to share a new tool from our friends at Landscape.vc with you. Dealflow Intelligence helps you find the best startups & founders before anybody else does.
So, let's get started and learn more about the future of investing with Gen Z VCs!
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About Us |
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This newsletter is curated by Maximilian Fleitmann & Uma Patel. We are sending it out bi-weekly and are covering exciting trends and topics around VC and angel investing. Besides that, we will give some good Sunday reads.
But enough said, let's jump into the newsletter!
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Unlock Data-Driven Deal Sourcing
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by Landscape.vc
Get visibility on the latest funding rounds, uncover future founders, track stealth startups, and discover the latest trending products.
You're funding the next ๐ฆ, and we're here to help you find the needle in the haystack.
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๐ช Deep Dive: |
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The Emerging Gen Z VC |
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The term โGen Z VCโ was coined by Meagan Loyst in 2020 to refer to the generation born between 1997 to 2012 that has entered the world of venture capital. Loyst has since created GenZ VCs, a community of 20,000+ founders, angel investors, operators, and aspiring VCs. What originally started as a tweet, led to an article that surveyed GenZ investors on what they considered rising trends and their favorite GenZ companies.
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The 2020 survey found the top 4 Gen Z trends (71 respondents): |
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#1 Creator Economy
#2 EdTech
#3 Social Gaming
#4 Prosumer / Consumerization of Enterprise Software
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The 2021 survey found the top 4 Gen Z trends (132 respondents): |
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#1 Fintech
#2 Enterprise SaaS
#3 Consumer D2C (Apparel, Beauty, eComm, etc.)
#4 Creator Economy
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The Gen Z to VC Pipeline
- On-Campus. Dorm Room Fund, Contrary, and Rough Draft Ventures are just a few examples of programs that allow students to invest in other student entrepreneurs on their campus. Acting as partners at their respective universities, students are meeting founders, writing checks, and supporting their growth all before graduation.
- Early Career Programs. More established funds are opening their doors to students and post-grads to learn about VC through internships and entry-level roles. VC fellowships are also increasingly popular for those who may opt out of school or make a career pivot.
- Self-taught. Gen Z is known for the โdo it yourselfโ mentality. Additionally, the internet has fostered the rising creator economy, leading to greater democratization of investing knowledge. This means waiting for a prestigious VC job doesnโt stop them from entering the industry.
- Personal brand. Carving out a space on the internet is easier than ever and many GenZ VCs have built careers around their personal brand. Whether it's writing a newsletter, growing a community, or hosting a podcast they have the ability to establish credibility, network, and build early into their careers.
How VC aligns with the Gen Z profile
- Socially online. GenZ might be perpetually online but that means that their network stretches far and wide. They know founders in countries miles away and write for those decades into their VC careers on rising trends.
- Generalists. The endless access to knowledge means GenZ has formed into a pretty well-rounded group. Itโs common nowadays to have seemingly unconnected hobbies, skills, and educational backgrounds whose transferable skills can be quite valuable in a VC role.
- Impact-driven. As a GenZ, we want our work to be meaningful, so VC allows us to be at the forefront of investing in companies that can positively change the world. When it comes to issues such as climate change, racial and gender equality, and mental health, this generation is among the most vocal and proactive.
- Independent. GenZ grew up knowing they can access online courses or build a website with just a few clicks. Their go-getter attitude is something that can be largely beneficial in VC where you are people-facing as much as you are analytical.
Top 3 Advantages of Having a Gen Z on Your Team
- The target market for many new businesses is GenZ and having the perspective of what appeals to this generation can be quite useful to have close by. The value of the GenZ perspective is why companies such as Z Link exist, to crack the code on how to market to this growing consumer base.
- Content-first approaches are often how GenZ establishes credibility early on. This means many of them are entering their careers with established networks and communities as well as a knack for building a voice in the industry. Greatly driving value-add for the firm.
- GenZ does not have a profile on what a great founder looks like or what a great company looks like. Although we may lack experience, we are unburdened by how things have always been done. This generation is eager to question outdated infrastructures and rethink the steps to spot the next big company.
How to Hire a Gen Z for your Fund?
- Job Boards: Startup&VC reaches thousands of professionals in the tech industry every week via our newsletter and Instagram. Post your VC job with us or use our Talent Pool!
- Social Media: Posting opportunities on your company's LinkedIn, Twitter and Instagram is always a great entry point. Make sure to keep the initial description short and sweet.
- Community Groups: Posting or having someone share an opportunity on Slack groups such as GenZ VCs, GenZ Scouts, and Girls Who VC allows you to target early-career professionals.
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๐ Additional Read:
Interested in learning more about the emerging Gen Z VCs? Check out these additional readings!
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๐ย What we have read this week |
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๐ฏย New Fund Announcements |
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- ๐ฆ๐ช Middle East Venture Fund IV by MEVP - $67,500,000
- ๐ช๐ฆ Clave Innohealth Fund by Clave - โฌ50,000,000
- ๐บ๐ธ U First Capital Fund XVII by U First Capital - $1,300,000
- ๐ฉ๐ฐ Dansk Vaekstfonden III by Vaekstfonden - โฌ322,000,000
- ๐บ๐ธ Link Ventures 3 LP by Link Ventures - $150,000,000
- ๐ฌ๐ง Amadeus APEX Technology Fund I by Amadeus Capital Partner - โฌ80,000,000
- ๐บ๐ธ Altai Ventures Fund II by Altai Ventures - $53,000,000
- ๐ฌ๐ง Sure Valley Ventures Fund II by Sure Valley Ventures - โฌ30,000,000
- ๐ธ๐ฌ Grayscale Ventures Fund I by Grayscale Ventures - $10,000,000
- ๐ง๐ญ Investcorp North American Private Equity Fund I by Investcorp - $1,200,000,000
- ๐บ๐ธ SixThirty Fund III by SixThirty - $66,000,000
- ๐ธ๐ฆ Emkan Capital Fund I by Emkan Capital - $31,000,000
- ๐บ๐ธ Bain Capital Flagship Fund X by Bain Capital Ventures - $1,900,000,000
- ๐บ๐ธ Nexus Ventures VII Fund by Nexus Venture Partners - $700,000,000
- ๐ธ๐ฌ Yongchaolianfa Fund 2 by Ondine Capital - $50,000,000
- ๐บ๐ธ Silent Ventures Fund I by Silent Ventures - n/a
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How to find LPs for your fund
VC and LP writer, Muieen Cader, shares his top 6 tips on finding the right LPs to eventually secure funding and achieve your investment goals.
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VC Talent Pool & Job Board
You are looking for your next team member? With Startup&VC you can publish your open position to thousands of talents and we recently also launched a Talent Pool you can pick from.
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That was it for the seventh episode of our newsletter. If you have any feedback or ideas, don't hesitate to reach out to us via Email or LinkedIn.
In all other cases - see you in two weeks!
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