The next “platform” of the Internet Economy won’t be a platform

GenZ-focused startups have the potential to be highly successful due to the unique characteristics of this generation. GenZ, also known as iGen or Post-Millennials, is the first generation born entirely in the digital age. They are digital natives who have grown up with technology and are comfortable using it in their everyday lives. This gives them a natural advantage when it comes to creating and launching technology-based startups - in a market that’s huge. According to a late 2021 study by Bloomberg, GenZ has a collective purchasing power of over $360 billion per year, and this number is only expected to grow as the generation enters its peak earning years by 2030.

One of the key reasons why GenZ-focused startups have the potential to be successful is that this generation is more entrepreneurial than previous ones. GenZ is known for its willingness to take risks and try new things, which is essential for entrepreneurship. They are also more likely to be independent and self-motivated, which can help them overcome the challenges of starting a business. Additionally, GenZ is more likely to have a global perspective, which can help them identify opportunities in the global market and create startups that are relevant to a wide audience. The first two waves of the Web (1.0 & 2.0) were built by Internet non-natives -let that sink in for a bit. Web 3.0 will be largely built by people that are literally younger than the World Wide Web itself (WWW was launched on Christmas Day, 1990). Innovation and disruption are about synthesis: to convey complex socioeconomic challenges and solve them by leveraging technology, new business models, and creativity. This generation has the tools, resources, and knowledge available at its fingertips.

The right time

Another factor that makes GenZ-focused startups particularly promising is the fact that it is now easier than ever for young people to access capital. Venture capital (VC) is more mature and accessible than it was 15 years ago, which means that GenZ entrepreneurs have more options when it comes to funding their startups. Many VC firms now have programs specifically designed to support young entrepreneurs, such as scouters in Universities or graduate-focused programs targeting first-time founders. There are also a growing number of online platforms that allow people to crowdfund their startups.

Fewer technical barriers

Finally, the availability of low or no-code platforms makes it easier for people without a tech background to experiment and build technology-based products. This is particularly beneficial for GenZ entrepreneurs, who may not have the same level of technical expertise as older generations. With the help of these platforms, GenZ entrepreneurs can quickly and easily create prototypes and test their ideas without needing to spend a lot of time and money on development. This makes it possible for GenZ entrepreneurs to launch their startups faster and more efficiently compared to previous generations.*

VCs & GenZ Founders = a match made in heaven

So VCs would eventually be hooked in this new generation of founders. But why should GenZ creators bother *and partner* with VCs? The answer might be commercialization guidance and venture-building experience. GenZ founders go all in when it comes to impact and feel-good narrative but most times fail to deliver a sound commercialization plan so their venture has solid prospects to become economically viable. The second area of support is the venture-building process itself. The Zuckerberg effect is the exception, not the norm. A first-timer, young (or not tbh) founder, will need all the support, guidance, and tips she/he can get when it comes to leadership, culture building, hiring, and governance. An engaged & aligned VC might be the missing link for this new and aspirational generation of builders.

In conclusion, GenZ-focused startups have the potential to be highly successful due to the unique characteristics of this generation. They are digital natives who are more entrepreneurial than previous generations, and they have easier access to capital thanks to the maturity of the Venture Capital industry.?

We shall not forget that Venture Capital as an industry was built on the premise that by investing and supporting the next generation of creators, builders, and visionaries early on, we create a better future. Well, the future will be built based on people, not platforms.

Until next time, wishing you a joyous Christmas and a prosperous New Year! ??

Dimitris

* Talking as a Millennial who built his first website in Geocities (if you remember that you can feel old) in 2001 with very limited HTML knowledge.

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Plot twist: Most of the above article has been composed by OpenAI’s ChatGPT . Editorial curation & additional data by Maria Kokidou & yours truly.