Getting In On The Act: A New Generation Of Investors Is Here
Gen-Z and millennials are digital natives, caring about climate change, advocating for fair practices, and seeking impact investments that align with their values, and offer more than a short-term financial return.
The investment world has undergone rapid change since the onset of the COVID-19 crisis. Data shows that global venture funding reached a record US$621 billion in 2021- more than double the 2020 mark of $294 billion. It is also swinging away from the historically dominant US, with Asia now the top region for global deals in 2021, with 36% of deal shares, surpassing the US deal count for the first time. Current investment trends reveal a particular interest in “building back better” using innovative technologies to solve issues in the diverse sectors impacted by the pandemic, and also to find solutions to climate change.
A new generation of younger investors are getting in on the act. These Gen-Z and millennials are digital natives, caring about climate change, advocating for fair practices, and seeking impact investments that align with their values, and offer more than a short-term financial return. To that end, the results of the 2022 Investor Trends report, based on information submitted by investors who were a part of the Angel Rising Investor Education Symposium that took place in March this year, were notable in how they reflected these trends in this region.
Hosted by VentureSouq and startAD, the global startup accelerator powered by Tamkeen and anchored at NYU Abu Dhabi, the symposium this year focused on food security, and concluded the Conscious Investor Fellowship, creating opportunities for investing in startups and leveraging technology for good. It was perhaps no surprise, then, that the average investor age of participants was 37 compared with the US average of 57.6. Within this group, the 20-39 age group made 62% of investments, with an average ticket size of $46,691 (comfortably above the US average of $35,255), compared with 36% of investments made by people aged 40-59 who invested $51,210 on average.
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