This Top VC Has Bet Close To 20% Of His Fund On Teenagers — Here’s Why
Kevin Hartz has never been one to follow the crowd. Known for spotting major tech trends years before they go mainstream, this top VC has bet close to 20% of his fund on teenagers — and his reasoning might surprise you.
Image Credits:A*
From co-founding billion-dollar startups to backing teen prodigies, Hartz is redefining what early-stage investing looks like in 2025.
The Visionary Behind A Capital*
Before Kevin Hartz became the investor betting big on teenage founders, he was the entrepreneur rewriting the rules of Silicon Valley.
In 2001, Hartz co-founded Xoom, when sending money internationally meant standing in line at Western Union. Xoom went public in 2013 and was later acquired by PayPal for $1.1 billion in 2015.
He followed up with Eventbrite, making ticketing simple and social — and took it public in 2018. After a brief stint at Founders Fund, Hartz launched A* Capital, his own venture firm (a nod to a computer science algorithm).
When the SPAC boom hit, Hartz was ahead of the curve again. His blank-check company, “one,” merged with Markforged, a 3D printing startup, in a $2.1 billion reverse merger — just as SPACs were becoming Silicon Valley’s latest obsession.
From SPACs To Students: Betting On Teen Innovators
Now, Hartz’s latest frontier is even younger — literally. His firm, A* Capital, has invested in Aaru, an AI-powered prediction engine co-founded by a teenager who couldn’t yet drive.
That’s right — this top VC has bet close to 20% of his fund on teenagers, and not as a PR stunt. Hartz believes that raw creativity and fearlessness often peak before founders hit 20.
He’s not alone in that conviction. Silicon Valley’s fascination with youthful genius — from Steve Jobs and Bill Gates to Mark Zuckerberg — has evolved from myth to model. A growing number of investors are now actively seeking founders still in high school or early college.
The Rise Of The Dropout Founder Movement
Take Cory Levy, for instance. He was interning at Founders Fund, Union Square Ventures, and Techstars — all while still in high school. After a year at the University of Illinois, he dropped out to build companies full-time.
Today, Levy runs Z Fellows, a one-week accelerator that gives technical founders, including high schoolers, $10,000 grants to launch their ideas.
“When I dropped out, the Thiel Fellowship was radical,” Levy told Business Insider. “Now, dropout communities are everywhere. You can sit at a dinner table of 20 founders — and not one has a college degree.”
Y Combinator’s Quiet Endorsement Of The Teen Founder Era
Even Y Combinator (YC), the startup accelerator behind Airbnb and Dropbox, is leaning into the trend. It’s quietly built programs tailored for students who want to start companies before finishing school.
YC has long encouraged founders to “just start building,” but now it’s providing structured support for those too young for traditional funding paths. The message is clear: age no longer defines ability.
Why Teenagers Might Be The Next Big Bet
Hartz’s conviction is built on data — and instinct. Teen founders are digital natives, growing up with AI tools, coding education, and access to global networks at their fingertips.
They also come with fewer biases and more willingness to take moonshots. In an era where innovation cycles are shorter than ever, teenagers may have the agility older founders lack.
Hartz’s portfolio proves it: A* Capital isn’t just funding youth — it’s betting that the next billion-dollar company could be born in a high school dorm.
This top VC has bet close to 20% of his fund on teenagers, but it’s not a gamble — it’s a calculated recognition of where innovation begins.
If history repeats itself, these teen-led startups might not just be the next wave of disruptors — they could be the future of Silicon Valley itself.
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