teenage founders Kevin Hartz youth entrepreneurship

Teen Titans of Tech: Why Kevin Hartz Is Betting Almost One-Fifth of His Fund on Teenage Founders — and What That Means for Startups

Posted on October 19, 2025 at 05:35 PM

Teen Titans of Tech: Why Kevin Hartz Is Betting Almost One-Fifth of His Fund on Teenage Founders — and What That Means for Startups

What if the next billion-dollar startup is being coded between algebra homework and driving lessons? One top VC thinks it’s not only possible — he’s actually backing it with real capital.

Kevin Hartz — co-founder of Xoom and Eventbrite and now running A* Capital — says teenage founders make up close to 20% of his firm’s recent investments, up sharply from roughly 5% two years ago. That’s not a PR stunt; it’s a deliberate tilt at talent that’s younger, faster and often more fluent in today’s consumer tech behaviors. ([TechCrunch][1])

What happened (quick summary)

  • A* Capital, led by Kevin Hartz, has materially increased its exposure to teenage founders — nearly one-fifth of recent bets. ([TechCrunch][1])
  • The trend reflects a broader cultural shift: accelerators and fellowships (Z Fellows, Thiel Fellowship, YC student tracks) are legitimizing earlier exits from formal education and funneling capital to high-school and early-college founders. ([TechCrunch][1])
  • Hartz pointed to concrete examples — like Aaru, an AI prediction startup whose founder was under driving age when backed — showing VCs aren’t just paying lip service to youthful talent. ([TechCrunch][1])

Why VCs are leaning in (the thesis)

  1. Raw domain fluency. Teenagers live in the social, gaming and creator ecosystems that matter for modern product-market fit. They notice unmet needs first. ([TechCrunch][1])
  2. Talent arbitrage. With rising costs and perceived institutional friction in universities, ambitious young people see entrepreneurship as a faster route to meaningful work — and investors see higher upside per dollar. ([TechCrunch][1])
  3. AI + building tools lower barriers. Foundational AI models and low-cost stacks accelerate prototype-to-product timelines, letting younger teams ship faster and iterate with real users. ([TechCrunch][1])
  4. Ecosystem support is catching up. Fellowships, student-focused YC tracks, and micro-grants (e.g., $10K Z Fellows awards) reduce the initial financial and administrative friction for teenagers to build. ([TechCrunch][1])

The trade-offs VCs and founders should consider

  • Maturity vs. momentum. A 16-year-old founder might be fearless and nimble — but lacks life experience and may face governance, legal and personal-development risks. Investors must weigh mentorship-heavy support against raw upside. ([TechCrunch][1])
  • Ethics and upbringing. Funding teens raises questions about work-life balance, schooling, and whether early success deprives founders of formative experiences. Hartz himself reflected on this tension — acknowledging both the exhilaration and the challenges. ([TechCrunch][1])
  • Signal vs. noise. Not every teenager with hustle deserves VC. Screening for real technical skill, repeatable execution and market understanding is crucial.

Bigger picture — why this matters beyond headlines

This is not just a story about a handful of young founders or a single VC’s thesis. It signals a structural shift in talent pipelines and startup culture: capitalism meeting adolescence. If VCs successfully back teens who become category-defining founders, we’ll see norms shift about education, job timelines and how ecosystems (schools, mentorship networks, regulators) respond. Conversely, if many of these bets fail or produce harm, we may see backlash and stricter guardrails. Either way, the next decade will tell whether this is a durable talent strategy or a high-variance cycle.

Quick takeaways for different readers

  • Founders (young): If you’re under 20 and building, the doors are opening — but surround yourself with advisors and legal safeguards.
  • Investors: Recalibrate diligence to include pedagogy, guardianship structures and long-term welfare, not just cap table upside.
  • Educators & parents: Expect difficult conversations; young entrepreneurs will ask for different timelines and support systems.
  • Policy makers: Consider protections and frameworks that balance innovation with minors’ rights and wellbeing.

Glossary

  • Thiel Fellowship: A program offering young founders funding to leave college and build startups. ([TechCrunch][1])
  • A* Capital: Kevin Hartz’s venture firm (named with a nod to algorithms), active in early-stage bets. ([TechCrunch][1])
  • Z Fellows: A short accelerator that gives small grants (e.g., $10K) to technical founders, including high-schoolers. ([TechCrunch][1])
  • Product-market fit: When a product satisfies a strong market demand; often the core value signal for VCs. (General term.)

Source: https://techcrunch.com/2025/10/18/this-top-vc-bet-close-to-20-of-his-fund-on-teenagers-heres-why/

[1]: https://techcrunch.com/2025/10/18/this-top-vc-bet-close-to-20-of-his-fund-on-teenagers-heres-why/ “This top VC has bet close to 20% of his fund on teenagers — here’s why TechCrunch”
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