Gen Z is so good at trendspotting they could take over the VC industry

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Gen Z is continuing to make waves in venture capitalism.

Gen Z is continuing to shake up the venture capital industry.

Friday saw the first major event hosted by Gen Z investors for Gen Z investors, which 3,000 people from more than 70 countries attended, according to Axios. It was cohosted by Meagan Loyst, a 24-year-old investor for VC firm Lerer Hippeau, who has taken to calling her cohort Gen Z VC.

Loyst coined the term in a November Medium article that went viral. Gen Zers, she wrote, were turning to venture capitalism as a gap year, to improve diversity in their region, to fill a hole in their local funding ecosystem, but also for one very important reason.

Gen Z knows how to spot trends, and that’s lucrative in the VC world.

The generation is an increasingly huge draw for venture firms, Axios reports, and firms in the space are hiring like crazy.

“I’m the target demographic for a lot of the companies that we’re looking at,” Loyst previously told Insider.

She created a Slack workspace of the same name the same month she coined Gen Z VC, and now it’s home to thousands of aspiring and full-time Gen Z investors. On it, they share how they broke into the industry, whether through lucky encounters with senior investors or a well-crafted cold email.

“People are seeing there’s not one typical path,” Loyst added.

Gen Z is set to take over the economy

Gen Z accounts for 30% of the global population, and VC firms will adapt to it and be shaped by it.

“What’s so unique about Gen Z VCs as it’s grown and scaled is that you see the power of Gen Z as a demographic, as opposed to just investors,” Loyst said.

Gen Z is certainly playing a larger role in the economy. They’ve emerged from the pandemic as the new “it” generation, with their oldest members turning 24 this year. It’s around this age and life stage that a new generation falls under the spotlight because they’re old enough to begin to exert their influence, Jason Dorsey, who runs the Center for Generational Kinetics, a research firm in Austin, Texas, recently told Insider.

It’s been a cultural shift, with Gen Z already leading the way in consumer trends that’s set to impact overall spending. TikTok, baggy jeans, and Y2K fashion have all gone mainstream this year thanks to the generation’s trend-spotting abilities. It’s big business.

In a little over a decade, Gen Z will be taking over the economy. Gen Z currently earns $7 trillion across its 2.5 billion-person cohort, according to Bank of America Research. By 2025, that income will grow to $17 trillion, and by 2030, it will reach $33 trillion, representing 27% of the world’s income and surpassing that of millennials the following year.

But they’re still a mystery to society, leaving Gen Z “shifting and driving much of the conversation,” Dorsey said, which he predicts they’ll do for the next 15 years. Since venture capitalists invest in the next big thing – whatever that may be – venture capital is a natural fit for Gen Z, which is increasingly flexing its muscles.

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Venture capitalists are losing leverage with founders to young influencer investors

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Andreesen Horowitz partner Marc Andreesen speaks during the Fortune Global Forum on November 3, 2015 in San Francisco, California. Business leaders are attending the Fortune Global Forum that runs through November 4.

  • Venture capitalists long held the power over the people they invest in.
  • Influencers and celebrities are encroaching on the investment space, giving entrepreneurs options.
  • “There’s this old line that being a VC was 99 percent saying ‘No’ and 1 percent begging,” an anonymous VC told Vice. “And now, it’s more like 10 percent begging. “
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It’s brutal out there for venture capitalists.

“There’s this old line that being a VC was 99 percent saying ‘No’ and 1 percent begging,” an anonymous venture capitalist told Vice in a recent interview. “And now, it’s more like 10 percent begging.”

That’s due to the ever-encroaching investment capital from celebrities and influencers, from Ashton Kutcher to Jay Z to this group of TikTok stars, they said, who offer not just an alternative form of funding but also celebrity appeal.

With investment competition from outside the world of venture capital, “You spend a lot of your time trying to convince some 23-year-old little shit that you are better than some internet celebrity who they think is going to be more effective than you are because they have more Twitter followers,” they said.

Read more: Here’s what Uber’s CEO told his team to fix after he spent a weekend working as an Eats driver

Like influencers and celebrities, VCs tend to seek attention – albeit through Twitter and LinkedIn rather than Instagram and TikTok.

That often manifests as so-called “humble brags,” which are the passive-aggressive version of boasting. The behavior is so common among VCs that it reached the stage of parody last year with a popular Twitter account called “@VCBrags.”

“One of the reasons that VCs are so annoying on Twitter,” the anonymous VC said, “is because at the very earliest stages, they win by being known … You build a brand. And so VCs are out there trying to build the brand.”

Got a tip? Contact Insider senior correspondent Ben Gilbert via email (bgilbert@insider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

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Tesla could soar another 300% as the company expands its tech outside of the auto industry, says a prominent VC investor

FILE PHOTO: Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo
Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai

  • Tesla could soar over 300% to reach $2,500 in the next three years, says venture capitalist and veteran tech analyst Gene Munster.
  • The Loup Ventures co-founder told CNBC Tesla will use its current technology to expand beyond the auto industry and into areas like insurance, autonomy, and HVAC.
  • “They’re going to evolve outside of cars longer term,” Munster added.
  • Shares of Tesla reached an all-time high of $615 shortly after the opening bell on Monday. 
  • Visit Business Insider’s homepage for more stories.

Tesla could soar over 300% to $2,500 within the next three years, according to venture capitalist and veteran tech analyst Gene Munster. A move like that would push Tesla’s current $567 billion market capitalization to over $2 trillion. Only one other company in the world-Apple-has passed that number to date.

The Loup Ventures co-founder told CNBC on Monday that Tesla will evolve over the next few years to become more than just a car company.

“They’re really going to take their tech that they’re defining and pioneering with auto and apply it to new markets,” he said.

Munster discussed how Tesla CEO Elon Musk recently said that the company may enter into the insurance business, HVAC space, and autonomous vehicle industry. 

“Elon has recently said that 30 to 40 percent of the value the car could be in insurance,” said Munster. “What that means is that they can start offering their own insurance and improve margins. That’s high margin revenue, not to mention everything they’re doing around over-the-air updates with autonomy and what they can even do around HVAC.”

Read more:Market wizard Chris Camillo grew his trading account by $9.7 million in 2020. Here’s the simple strategy he’s using to mint millions.

Munster also pointed to flying taxis as another frontier Tesla may expand to that could propel it’s stock price, though he added: “I would not invest in Tesla based on that, but the concept that this company is going to continue to evolve and be a tech leader in the next decade, I’m on board with that.”

Munster added that the “ship has sailed” for traditional auto companies to compete with Tesla, though Volkswagen followed by GM are in the best positions to “remotely compete” with the electric vehicle maker.

“There’s no substance competition, they’re going to evolve outside of cars longer term,” he said of Tesla.

The venture capitalist, who spent over 20 years as a tech analyst on Wall Street, said that Apple could be the biggest company to compete with Tesla over the longer term. 

“Whatever [Apple’s] ambitions are in vehicles, I mean it’s been really quiet there, I’m not expecting anything in the near term, but that as a Tesla investor would be the one announcement that would cause me to step back and rethink things,” said Munster.

Shares of Tesla reached an all-time high of $615 shortly after the opening bell on Monday. 

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