Gen Z Entrepreneurs: Solving Societal Problems through Innovation
The rise of socially conscious startups led by Gen Z founders
Siddharth Thakur, a 19-year-old junior at the University of Texas at Austin, founded Paradigm Robotics to assist firefighters on the job. What started as a passion project has now grown into a company that builds remote-controlled robots to assess damage, search for survivors, and minimize risks for firefighters in structural fires. Thakur’s story is emblematic of the entrepreneurial spirit of Gen Z, a generation focused on solving societal problems through innovation. This article explores the characteristics and achievements of Gen Z founders, their commitment to social justice, and their impact on the startup ecosystem.
Generation of problem solvers:
Gen Z, ranging in age from 11 to 26, is characterized by its political awareness and social justice-driven mindset. Growing up in the age of the internet, they have access to unprecedented levels of information and diversity. Research shows that Gen Zers deeply care about others, value collaboration and flexibility, and have a pragmatic attitude towards addressing inherited issues like climate change. This generation is also more entrepreneurial-minded, with approximately 50% expressing an interest in starting their own business.
Jonathan Greechan, who works with Gen Z-run startups at the Founder Institute, highlights their advantage in connecting with customers and telling compelling brand stories. Unlike previous generations, Gen Z founders inherently understand the importance of having a purpose-driven company. They challenge societal norms and strive for sustainability and equity in their businesses.
Examples of Gen Z entrepreneurship:
SoundMind, an audio-wellness platform founded by Brian Femminella and Travis Chen, offers music therapy to address stress, anxiety, and trauma. Inspired by the impact of service on soldiers’ mental health, they raised over $2 million in seed money and have onboarded 100,000 users across various organizations.
Tash Grossman, co-founder of Slip, a digital receipts software company, aims to minimize waste by eliminating paper receipts. With 30,000 receipts per month and seven retail customers, Slip has raised $1 million in pre-seed funding. Gen Z founders like Grossman are driven by a concern for climate change and expect companies to invest in sustainability.
Gen Z in the VC world:
While Gen Z founders are still relatively young, universities are creating environments for them to experiment and gain support. Incubators and resources on college campuses offer free space, mentorship, and networking opportunities. The Center for Venture Research at the University of New Hampshire reports that university R&D spending reached $90 billion in 2021, providing a fertile ground for student-led startups.
However, Gen Z founders face challenges in being taken seriously by investors. They need to demonstrate a clear business proposition alongside their purpose-driven approach. Grossman emphasizes the importance of finding someone willing to pay for sustainability initiatives.
Conclusion:
Gen Z founders are making their mark on the startup ecosystem by tackling societal problems through innovation. Their commitment to social justice, sustainability, and equity sets them apart from previous generations. While still early in their entrepreneurial journey, Gen Z founders are finding support on college campuses and leveraging their unique advantages to build successful businesses. As they continue to make strides in the startup world, their impact on society is poised to grow, inspiring future generations to create purpose-driven companies.