As the influence of Gen Zers has grown on the economy, there have been some notable developments in the venture capital world as it relates to this new generation of investors:
The rise of Gen Z VCs. Gen Z VCs is an online community that started out with a few hundred friends talking VC, and now has become the destination for young investors to swap knowledge and deal flow. Gen Z VCs has grown to over 10,000 members since launching in November 2020.
Leveraging personal brands. TikTok to Silicon Valley – many GenZers are able to use their TikTok or other social media followings to gain access to allocations to deals or even jobs with Silicon Valley VCs.
On campus. Dorm Room Fund enlists students to serve as scouts to identify investment-worthy businesses founded by their fellow classmates. Students accepted into the scout program perform due diligence on companies, prepare deal memos and make investment decisions.
Dorm Room Fund was launched in 2012 and is backed by First Round Capital. It has invested in over 300 companies and worked with 250 student scouts—76% of whom have gone on to found their own company or work in VC.
Gen Z VCs tend to favor companies in the creator economy, edtech, social gaming, and digital health.
Easy peasy to share this story with your peeps