He says some young investors have proven to be valuable, but his concern is about the idea that they might be given a greater role just because they are young. He is wary of a mentality that “some guy’s a millennial, he must know about millennials” and would rather find investors who understand young consumers “because they can understand what the data says about millennials,” regardless of their age.
And founders do not take kindly to what they see as lessons in business from young investors. Vivi Friedgut, 40, founder and CEO of the education technology company Blackbullion, recalls her frustration during one meeting with a young investor.
“Having somebody talking down your business without asking any questions to understand it is a little bit patronizing,” she says. “And when it comes from a 25-year-old with no experience, that doesn’t tend to go down that well.”
Even so, younger investors say the benefits of youth more than make up for the frustrations that may accompany their lack of expertise. Age helps them spot good startups early, these VCs say, because they can see what would appeal to their peers, and to build good relationships with founders.
Founders are “going to be a little bit intimidated by someone who has done 10 to 20 IPOs” if they’ve only recently finished school, says Goldberg, from Lightspeed Ventures. “If there’s someone who’s your age and has a similar level of experience I feel like you’ll confide in them a lot more.”
This article was provided by Bloomberg News.