In the coming years, a generation that is already starting to make its presence felt in the venture capitalism industry is undoubtedly going to increase its influence in the field. Gen Z, just beginning to emerge into adulthood with its oldest members turning 24 in 2021, makes up 30% of the world population, and as more of its cohort reaches maturity, their impact will only continue to grow. Companies looking to connect with up-and-coming Gen Z investors should understand why this generation is a natural fit with VC to make the most persuasive pitch.
Trendsetters with Buying Power
Successful venture capitalism is largely about spotting the promise in something new before it has become widely known, whether that’s a novel product, an innovative style, or an original concept. Gen Z has already made its mark in that sense, leading the way in lifestyle trends and consumer behavior as its preferences first identify and then drive the next big things in products, services, and social media. Existing venture capital firms have begun hiring Gen Z employees to help them spot the trends that older partners might miss.
Currently, the 2.5 billion people who make up Gen Z earn $7 trillion, with that figure set to grow to $33 trillion by 2030. This will put them in command of 27% of the world’s income in that year. In the following year, their income will surpass that of Millennials, the generation directly preceding theirs. This increasing share of the economy ensures that Gen Z will represent a significant target demographic for any company to appeal to as well as a growing number of the investors who will, through their funding choices, be selecting the businesses given the opportunity to flourish.
Comfort with the New Economy
In the 20th century, the unwritten rules of how individuals earned and accumulated wealth changed at an accelerating pace, throwing stumbling blocks in the way of those who grew up with one set of expectations and then found themselves navigating a world where little of what they thought they knew applied. Baby Boomers, for example, may have expected that a long-term career at a single company would net them a pension in the way it had for the Greatest Generation, only to have to learn the ins and outs of 401(k) plans to fund their own retirements.
Gen Z, on the other hand, has grown up in a world with the full expectation that their economic future is in their own hands, and that their employment path may take a decidedly untraditional route. A higher percentage of them have begun investing at an earlier age than previous generations, and the introduction of accessible online investment platforms gives an easy entrance to the practice for a generation raised with technology since birth. They’re also less likely than previous generations to expect that the stock market (with more than one crash in recent memory) or banks (with low-interest rates) can be relied on to effectively build wealth on their own.
This means that more of this generation will be looking for nontraditional ways to invest their funds. A recent online event gathering Gen Z investors attracted 3,000 people from more than 70 countries, demonstrating an impressive strength of numbers for such a young group.
Connecting With Your Audience
A successful pitch doesn’t just relay the facts and figures of your business plan. It has to show your audience why what you do is important. Gen Z, a group that is diverse, socially engaged, and on track to be better educated than previous generations, is open to new ideas but also more likely to want to know the big picture purpose behind your ideas before they buy-in.
Telling your story effectively and succinctly is the key to making the most of your pitch opportunities. A high-quality custom animation from Squash & Stretch Productions is designed to tell your story quickly and impactfully. We help you hone your story and message to move your audience to action. To find out more about our services or to schedule a free initial consultation, contact us here.
