Niko Bonatsos of General Catalyst looks for founders who build products for their own needs, treat every conversation as a learning opportunity and build technical teams. The post covers what he sees in Gen Z founders and how he pairs them with experienced mentors.
They grew up on the internet, and they were building the future for themselves. Some were still shy of the legal drinking age, but the Gen Z founders Niko Bonatsos worked with were reshaping the startup world.
“The youth, Gen Zers have landed on this planet like aliens, and they’re about to take over. They are living in the future in their heads, and I have no doubt that the ones who are technical can actually start building it,” he says.
At the time of the webinar, Bonatsos had spent more than 10 years at venture capital firm General Catalyst, where he worked with companies such as Snap and Discord. He was shifting his focus to startup newbies. By pairing first time Gen Z founders with more seasoned mentors, he was helping train a new generation of entrepreneurs.
On Feb. 7, Bonatsos hosted a webinar for Founders Network where he shared insights from working with Gen Z founders.
To learn more about changes in startup culture, see if you qualify for membership and check out the webinar from February 7.
What Makes Gen Z Founders Different
At the time, the group’s oldest members were about 26, so Gen Z founders had grown up on the internet. And, they firmly believe they can have careers making money on the internet, Bonatsos says.
Their unique values are reflected in what they create, like, for instance, the generation’s increased progressivism and sexual fluidity. For example, when it comes to online dating products, Bonatsos is hearing pitches for apps that provide options for people to reimagine relationships and experiment with sexuality and non- monogamy.
In order to combat their lack of experience, Bonatsos pairs Gen Z and first time founders with more seasoned entrepreneurs who now have time to give back.
“We at [General Catalyst] have helped a ton of first time founders and immigrant founders make fewer mistakes than they would otherwise make on their own,” he says.
The Gen Z Founders Who Succeed
The most successful Gen Z founders who pitch to Bonatsos are building for themselves, meaning they are creating products and services that address their own needs.
As a result, successful Gen Z founders already demonstrate prowess in one of the most critical aspects of the sales pitch – proving there’s an audience for their products.
For instance, “I’m 23 years old. I’m a nerd developer. I think my productivity really sucks. I’m going to build a dev tool to improve my productivity as a developer,” Bonatsos offers as an example.
But, in evaluating young entrepreneurs, Bonatsos looks for founders and teams with an age old strength: the ability to adapt to change.
“Time is money, because markets don’t wait for you,” he says. “We’re looking for founders who are learning animals, like they treat every meeting, every user interaction, every conversation with somebody who has experience as a learning opportunity.”
Building a Team at 19 Years Old
Some Gen Z founders make the mistake of going into business with their friends, says Bonatsos. They’ll go into business with roommates without thinking about pairing their vision with complementary skill sets.
But young entrepreneurs need to be strategic when deciding how to form a startup team. Bonatsos is specifically looking for founders and teams with technical backgrounds.
“I want the whole team to be technical, so that they can make progress really quickly. If the first idea doesn’t work out, which is very often the case, we can jump into another idea. Because, if it’s mostly business people, it’s going to take us a long time to come up with a new perfect idea,” he says.
Furthermore, Bonatsos recommends that Gen Z founders and first time founders identify a high-quality mentor who is a few years ahead of them in the startup launching process.
During his webinar, he also discussed:
- Changes in startup culture
- Getting noticed on TikTok
- Crypto obsessions
- Mentoring Gen Z
- What makes a successful Gen Z founder
To learn more about changes in startup culture, see if you qualify for membership and check out the webinar from February 7.
Frequently asked questions
What does Niko Bonatsos look for in founders?
He looks for founders who are learning animals and who adapt to change. He also wants teams with technical backgrounds so they can switch ideas quickly if the first one fails.
What kind of Gen Z founders succeed with VCs?
The most successful ones build products that address their own needs, which shows there is an audience. He gives the example of a developer building a tool to improve developer productivity.
What mistake do young founders make when forming a team?
Some go into business with friends or roommates without pairing their vision with complementary skill sets. Bonatsos recommends being strategic and finding a mentor a few years ahead.
How does General Catalyst help first-time founders?
Bonatsos pairs Gen Z and first-time founders with more seasoned entrepreneurs who now have time to give back.
