Earlier this year, Johnnie Yu heard about a new start that he is looking to make a small contribution. He liked the idea, so he cut the check. Yu is 21 years old and a senior at New York University. That’s it investor angel, gives money from the beginning. Its sales are small – usually about $ 2,500 – but it’s true: In exchange for that money, he earns less corporate income in the future, if he wins. He sees the money he earns from starting a career as a way to support his parents ’business, which is made up of many things such as selling a home.
Yu is part of a growing group of Gen Z advertisers who are beginning to make a mark on natural resources. Some of them are now old enough to work in VC companies or to work as financially. Others, such as Yu, are newcomers to donating money to the angels, as new platforms and recent legislative changes expand the opportunities for those who should participate. Young like-minded people gather on TikTok and Twitter, where initial conversations can bring about the necessary connections and exits. The Slack group Gen Gen VC has over 7,000 members, most of them still young.
For many of the Gen Z growers, burying angels is not just about getting rich and participating in the economy for the first time. “Everyone obviously expects a refund, but you often lose your money,” says Dayton Mills, a 22-year-old founder who created angels. “You often buy opportunities, and you look forward to getting closer. This can have far greater consequences than you can handle on your own. ”
In the past, laying angels has never been on the table for young people, thanks to the financial resources required by the Security and Exchange Commission. Anyone can buy goods from a state-owned company, but money in private companies is risky and accounting, which has led to stricter regulations from the SEC. Since the 1930s, only people who earn more than $ 200,000, or at least $ 1 million in total value, have been able to make angelic money — which does not include many Americans, and especially many young people, from participating.
Two changes have made money more accessible: In 2016, the SEC introduced new rules that allow investors to earn more money by repaying large sums of money, taking small checks from people who do not meet the requirements of the investor. And last year, it freed itself from the need for investors, allowing people with “special market recognition” to become angels. Now, individuals who work for private individuals or who have undergone certification examinations to demonstrate “economic efficiency” can participate, even if they do not meet the SEC’s financial needs. And those who can no longer claim money in a special vehicle, while the fund manager represents a group of people and combines what they have sold into a single partnership.
Mills and Yu, both members of the Gen Z VC Slack team, have recently taken part in the start of a series called Snack. Their founder, Kim Kaplan, a multi-year-old and the latest in a long line of partners, took money from Gen Z and invested $ 500,000 in the latest Snack to create Gen Z on AngelList, a platform for business start-ups. Kaplan has also received funding from traditional VC companies, but saw the need to repatriate young people, as it gives him access to those who use him. “I’m surprised that so many companies haven’t gone this route yet,” he says. “Why not have your customers at a nearby table?”
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