Top VC Kevin Hartz Bets Big on Teenage Founders: A Surprising 20% of His Fund at Stake

Top VC Bets Big on Teenagers: Here's Why In a surprising move, Kevin Hartz, co-founder of Xoom and Eventbrite, has invested nearly 20% of his fund in teenage founders. This unconventional investment thesis is not a social experiment but rather an unplanned result of spotting a trend early. Hartz's firm, A Capital, recently cut a check to Aaru, an AI-powered prediction engine with one founder who was too young to get his driver's license at the time. "We're not just investing in teenagers; we're investing in their ideas," Hartz said in an interview. "Their unique perspective and innovative thinking are exactly what we need to drive growth and disruption." Hartz is not alone in this trend. The "dropout-and-build" movement, popularized by founders like Steve Jobs and Mark Zuckerberg, has inspired a new generation of young entrepreneurs. However, Hartz's investment thesis is distinct from the typical narrative of teenage founders dropping out of school to pursue their passions. According to sources close to the matter, Aaru's founder was just 16 years old when he started working on the AI-powered prediction engine. The company's technology uses machine learning algorithms to predict outcomes in various industries, including finance and healthcare. "We're thrilled to have Kevin Hartz and A Capital on board," said Aaru's founder. "Their expertise and resources will help us take our product to the next level." Hartz's investment in teenage founders is not without precedent. The tech industry has a long history of embracing young talent, from Google's acquisition of Android to Facebook's hiring of young engineers. However, Hartz's approach is notable for its focus on investing in teenagers rather than simply hiring them. A Capital's investment in Aaru is just the beginning. Sources close to the firm indicate that they are actively seeking out more teenage founders with innovative ideas and a proven track record. "We're looking for companies that can disrupt entire industries," Hartz said. "Teenagers have a unique ability to think outside the box and challenge conventional wisdom." The implications of Hartz's investment thesis are far-reaching. If successful, it could pave the way for more teenage founders to access funding and resources, potentially leading to new innovations and disruptions in various industries. In conclusion, Kevin Hartz's decision to invest nearly 20% of his fund in teenage founders is a bold move that highlights the potential of young talent in the tech industry. As the industry continues to evolve, it will be interesting to see how this trend develops and what impact it has on the startup ecosystem. Background Kevin Hartz co-founded Xoom in 2001, which was later acquired by PayPal for $1.1 billion in 2015. He also co-founded Eventbrite, which went public in 2018. In 2020, he spotted another trend early: the SPAC boom. His blank-check company, one, swallowed up Markforged in a $2.1 billion reverse merger. Additional Perspectives Industry experts say that Hartz's investment thesis is a testament to the power of young talent in driving innovation. "Teenagers have a unique ability to think outside the box and challenge conventional wisdom," said one expert. "It's not surprising that Kevin Hartz is investing in them." However, others caution that investing in teenage founders comes with its own set of challenges. "It's not just about the idea; it's about the execution and the team behind it," said another expert. "Teenagers may have innovative ideas, but they often lack the experience and resources to bring them to market." *Reporting by Techcrunch.*