I’ve always wondered who gets to name demographic cohorts.
My parents were pre-baby boomers, which made them part of the silent generation. (I’m Generation X, so don’t hesitate to ignore me completely.)
Generation Z is portrayed as materialistic, distrustful and extremely dependent on personal technology. And now, as they join the ranks of venture capital, one investor says these traits inform how deals are done.
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Tech investors born after 1996 “have raised funds, garnered social media followers, and capitalized on the Gen Z mentality,” says Andrew Chan, a senior associate at Builders VC.
However, “Gen Z, no matter how you divide it, is still a bunch of kids. Me included,” he notes in a TC+ guest post. “Good for them. I don’t want to be a part of it.”
According to Chan, too many investors his age rely on “youth, groupthink, identification, and confidence as a substitute for hard work and experience.”
“It may work for now, but if this was a success for my generation of venture capitalists, I would have preferred to have stayed in my happy little bubble and written geochemistry code at NASA JPL.”
Thanks for reading,
6 ways to ensure your startup is using the right GTM model
Years ago I borrowed a racing bike from a friend for a day trip. There was an error.
I had never used a 10 speed bike before, so I wasted my time and energy climbing hills, much like a startup with a launch model that doesn’t match the stage of their business.
“Before you start scaling any sales model, you need a pipeline to support it,” said Ali Mitchell and Laura Yao, partners at EQT Ventures.
Getting GTM right is more than following basic best practices: you also need to know “what to do and when to do it”.
How to communicate with your crypto community when things aren’t going well
Because it’s an emerging industry that’s largely unregulated, crypto companies are generally incapable of communicating crises, and I’m being generous.
When a bank or financial services firm experiences a massive security outage or volatility shock, federal law dictates how they must communicate with their customers. However, crypto startups must rely on their own best judgement.
“There’s little point in declaring the sky is falling and asking your community for investment, but an overly rosy outlook won’t fool anyone, either,” said Tahem Verma, Mesha co-founder and CEO.
The majority of early-stage VC deals fail due diligence
It’s amazing how often investors say “no” to startup founders: If 100 young entrepreneurs pitch a VC, maybe three of them are lucky enough to get a second meeting.
To find out why simple due diligence is the end of the road for so many hopeful founders, Haje Jan Kamps interviewed Axel Bichara and Tyler Mincey of VC firm Baukunst.
“If you feel the need to write a script and set everything up to make a good impression, it probably won’t work,” Bichara said.
Investors outline their red (and green) flags for startups seeking venture dollars
To be clear, most investors want to say yes. No one becomes a venture capitalist just so they can trample someone’s dreams.
Reporter Rebecca Bellan spoke to several who specialize in climate technology and mobility to learn more about how their thesis has shifted in recent months and what this means for start-ups seeking follow-on funding:
- George Kellerman, Head of Investments and Acquisitions, Woven Capital
- Nate Jaret, General Partner, Maniv Mobility
- Alexandra Harbour, Director, Prelude Ventures
- Cassie Bowe, Partner, Energy Impact Partners
- Andrea Walne, general partner at Manhattan Venture Partners
“Investors see their dissertation discipline as the biggest driver of due diligence in today’s environment,” Walne said.