This article originally appeared in the March/April issue of Startups Magazine. Click here to subscribe

If you fall into this category, you may have come to a stark realisation: securing funding as a young founder can be tough. But don’t fret, all hope is not lost. Being young and hungry can definitely work in your favour.

LET’S FIRST LOOK AT THE CHALLENGES THAT GEN Z FOUNDERS COULD FACE

1. A lack of experience

One of the biggest hurdles faced is a lack of experience. But hey, everyone has to start somewhere, right? And just because they’re new to the game doesn't mean they can't make an impact — their fresh perspective could be just what the market needs.

2. An under-developed network

Another obstacle is not having a robust network of contacts like more seasoned (older) peers. Even someone tenacious and proactive can struggle to build the sort of contact list that their more experienced peers will have. That said, it’s important to start building a network of mentors, advisors, and peers who can guide you along the way as soon as you can.

3. Scepticism from elders

This one is less controllable and can have a big impact on a young founder’s ability to obtain funding. Often, the people in positions to invest are of a much older demographic, with views and attitudes that are completely different to those within Gen Z. This has its obvious drawbacks.

NOW WE’VE IDENTIFIED THE CHALLENGES, LETS FOCUS ON WHAT GEN Z CAN LEVERAGE

1. A tech savvy generation

For starters, they're often more tech-savvy than their older counterparts. This gives them an edge in certain industries where technology is king. And let's be honest, who doesn't love a good tech startup?

2. Greater access

Going hand-in-hand with the above, being native to tech means that Gen Z have better access to learning resources and professional networks than ever before. Knowledge which may have previously taken a long time to acquire is now generally available at the click of a button, and the same can be said for making connections across the globe.

3. Bright sparks

Investors are always on the lookout for the next big thing, and they know that the most innovative ideas often come from young, up-and coming entrepreneurs. Gen Z can benefit from their ability to provide ‘fresh eyes’ and exploit a modern landscape which others may not understand as well as them.

Advantages aside, how can this generation get the funding they need to make their dreams a reality? To get some actionable tips for Gen Z founders on how to get funding, I spoke to Improve Ventures GP & Business Angel School co-founder Olga Duka.

HERE’S WHAT SHE HAD TO SAY:

1. Highlight your actual experience. Digitally native & driven by opportunities, Gen Z generation`s first business experience wasn't a lemonade stand, it more likely was a TikTok & ads, or a website for parents’ business, or reddit community for gamers. Showcase your learnings, failures, insights, use cases, and use it to your advantage.

2. Use your unique perspective. For example, interface experience and requirements for what is comfortable for Gen Z is often quite different. Creating an entirely different user experience for the target audience you know best, may distinguish you from the rest of the market - and you are uniquely positioned to do so.

3. Trust your instincts. Driven by values, ethics, and concern for our planet, the Gen Z generation has, I think, what it takes to challenge the status quo in multiple industries – with some persistence and resilience. You also, in my experience, simply refuse to work with toxic & unethical counterparts, and do not take social status seriously.

4. Stay in control. Being in control, having ownership, having choices, having multiple life paths and opportunities means a lot to you. It’s a superb life position! And it really helps in negotiations with investors. It protects you from selling too much of your business too early and helps to walk away from bad deals and bad choices.

5. Build a strong network. Attend networking events, join industry groups, and connect with other entrepreneurs online … yes. Find people on LinkedIn and ask them to invest money/work for free … no

Stephane Nasser, Co-Founder of OpenVC, an online platform that connects tech founders with the right investors, believes that fundraising is counterintuitive for Gen Z because it's a process that is slow, offline, and based on introductions.

Stephane's own fundraising journey revolved around bootstrapping for two years, which gave him time to build the product, traffic, and connect with people – including those who became their investors down the road. Many emerging VC managers are the next generation of investors who are eager to bring about change in the industry.

As Stephane puts it: “Gen Z VC is bound to happen – it's not a matter of if, but when. However, things are slow to change in VC land, so if you want to raise funds now, you'd better learn to "boomerise" a bit. Your funding depends on it!”

Eddie Mazariegos, Founder of Future Gen, a Gen Z career exploration platform for high schoolers, is a first-generation immigrant and a proud Eagle Scout who is passionate about helping others. He faced an obvious challenge when he first started his founder's journey: he has a young face. On paper, he could sell his professional experience in the M&A world and in building mentorship and company culture programmes, but in person or over Zoom, it was clear that he was young.

Eddie didn't let this stop him, though. He learned that being Gen Z was his superpower and leaned into the fact that he knew the problem area he fell in love with very well and understood the audience he was building a solution for. When talking to investors, he embraced who he was and what made him unique. His authenticity, transparency, and personal vision resonated with both consumers and investors and built trust.

Eddie had no investor network before starting his company and had to build it from scratch in a city he had never lived in before, Seattle, WA. Now, a significant number of investors in the Pacific Northwest know him by name because he makes himself no stranger.

Eddie's best advice for other Gen Z founders is to work on a problem they love, build in public, and make themselves known. Investors are people too, so it's essential to introduce yourself before pitching to them, demonstrate that you can execute, and lead by example.

Gen Z founders may face some unique challenges when it comes to getting funding for their companies, but with the right approach, they can succeed. By building a strong network, emphasising their unique perspective, leveraging technology, and being confident, Gen Z’ers can make their entrepreneurial dreams a reality. And, as Stephane and Eddie have shown, being Gen Z can actually be a superpower when it comes to fundraising, so it's important to embrace who you are and bring your whole self to that funding table.