The European VC scene in 2024 stands at a fascinating crossroads. While experienced, serial founders dominate investor attention, a new generation of Gen Z entrepreneurs is eager to reshape the startup landscape. The question remains: Do Gen Z founders have a genuine chance of success in this environment, or is experience the only path to securing VC backing?
Why VCs bet on proven track records?
Onstage (formerly Focal), a platform specialising in early-stage fundraising, recently analysed over 4,000 startup applicants and found that more than half of the founders who attracted VC attention in 2024 were experienced entrepreneurs — 52% were serial founders, with nearly a fifth on their third company.
Other common traits among the top 50 founders included prior investment experience (23%), product development experience (23%), or C-suite experience (20%), as well as academic credentials, with 16% holding a PhD or scientific background. Diversity is also on the rise: 50% of those selected were state-educated, a third identified as women or non-binary, and 80% came from diverse backgrounds.
As Taos Edmondson, co-founder of Onstage, explained: “European dynamism hinges on the founders with the experience and expertise to produce high-impact, high-return propositions. We need to make sure they aren’t overlooked. Armed with the data, our extensive experience, and our network, we are excited about the next chapter of Onstage as we back the best founders through our investments.”
The next wave of Gen Z founders and their entrepreneurial promise
Despite the dominance of seasoned founders, there is growing entrepreneurial ambition among Gen Z. Sixty per cent of European Gen Zers intend to launch a business within the next 3–5 years. Yet, the bar for securing VC funding has risen: investors now expect not just a compelling pitch, but a functional product and early revenue. This dynamic naturally favours repeat founders who can marshal resources quickly.
Furkat Kasimov, co-founder at LeadsMarket, noted: “Gen Z founders absolutely have a future in Europe, and arguably a wider one than their U.S. peers because they can court both European funds and the deep pool of American capital now actively looking across the Atlantic for fresh deal flow… The bar for a first institutional check has risen. A slide deck is no longer enough; VCs expect a functional product and, ideally, some early revenue. That means most founders must piece together a minimum viable business, often with an angel before approaching seed funds, a dynamic that naturally favours repeat or otherwise seasoned founders who can marshal resources and talent faster.”
Still, being young is not a dealbreaker. As Flavia Levi at Join Capital put it, “It’s true that VCs are generally more inclined to invest in experienced founders, as they need to balance the risk they’re taking. However, VC is a game of exceptions… There are countless cases of companies that defy these patterns and succeed — it’s VC… In deeptech, it’s okay to back pre-seed and seed technical founders, even if they’re young. It’s more when you need to start selling that you want the white hairs to come in and open doors.”
Additionally, Gen Z founders bring a unique perspective to the table: a digital-native mindset and an intuitive understanding of emerging technologies and distribution channels. Konstantin Gnyp at Runa Capital observed: “Gen Z grew up with platforms like TikTok, Instagram, and YouTube and were among the first adopters of AI and LLMs. They naturally understand new distribution channels and are quicker to leverage emerging technologies than previous generations. I believe the combination of faster product development cycles and the ability to tap into viral distribution channels will accelerate the rise of Gen Z founders in the startup ecosystem.”
European infrastructure: A double-edged sword for founders?
Europe offers some structural advantages for young entrepreneurs, such as social safety nets and government-funded education, which lower the risk of starting a company compared to the United States, where student debt can be a significant deterrent. As Niamh O’Donnell of Unusual Ventures explained: “One major advantage Europe holds is its lower barrier to entry for starting a company. In the U.S., many Gen Zers are burdened with significant college debt, which discourages entrepreneurial risk-taking… Europe’s social safety nets and government-funded education systems give young founders more freedom to take the plunge.”
However, the European venture capital (VC) ecosystem remains more pedigree-driven and risk-averse than its U.S. counterpart. O’Donnell continued: “The European VC ecosystem tends to be more legacy-driven and pedigree-focused… there’s often more weight placed on a founder’s background and network than on the actual product-market fit or technical potential of the startup. In contrast, the U.S. VC environment leans more toward meritocracy, where bold ideas and traction can speak louder than a founder’s last name.”
Key growth catalysts for the Gen Z founders
The future looks promising for Gen Z founders due to several key trends. First, the democratisation of tools through no-code platforms, AI tools, and accessible funding channels has significantly lowered barriers to entry. Gen Z is also driving innovation across various sectors, particularly in gaming, the creator economy, AI-native applications, Web3, and climate tech.
Furthermore, the venture capital landscape is evolving, with micro VCs, angel syndicates, and emerging funds actively seeking out next-generation founders. Finally, Gen Z’s strong emphasis on sustainability, diversity, and social impact has proven particularly appealing to both markets and investors.
Dario Ferretti, CEO & co-founder of Pick-Roll APP, summarised: “Although today VC attention is understandably skewed toward more experienced entrepreneurs, I am confident that the next wave of disruptive innovation will heavily involve younger, Gen Z founders. They can leverage a digital-native mindset, have strong adaptability skills, and their unique cultural insights put them in a position to lead new ventures, particularly in emerging sectors… For Gen Z founders, building credibility early—through strong and experienced advisory boards, incubators, accelerators—will be crucial to overcoming the so-called ‘experience gap’.”
The path forward: Blending experience with fresh perspective
Ultimately, the most successful Gen Z founders will be those who combine their fresh perspectives and digital-native skills with strategic team-building and mentorship. As Davide Dattoli, Executive Chairman and Founder of Talent Garden, advised: “For first-time founders to succeed, the key will be preparation and smart team building. Those who thoroughly study their industry and proactively bring experienced leaders onto their teams will significantly increase their credibility with investors. Surrounding yourself with people who have ‘been there, done that’ sends a powerful signal that you’re serious and strategic, not just ambitious.”
And as Anna Muñoz Farré, Co-Founder and CEO of Punto Health, reminded: “It’s always so good to get a mix of people into startups, who can bring in different perspectives and think differently. It’s critical to set a cultural precedent where it’s acceptable to be different and think differently from your team. When you do that, you attract like-minded talent from everywhere. If you just have clones, then talent isn’t going to come to you.”
While the pendulum currently swings toward experienced founders, the future of Gen Z entrepreneurship in Europe is far from bleak. With the right blend of innovation, preparation, and diverse teams, Gen Z founders are poised to carve out their place and lead the next wave of European unicorns. As the industry matures and the capital landscape evolves, the most successful founders, regardless of age, will emerge to the forefront.
As Onstage’s team concluded: “Onstage exists because we believe world-class founders can come from all walks of life. We aim to build a level playing field for all these founders, so the best can rise to the top. So, yes, we believe there is a future for Gen Z founders in Europe.”
