Kevin Hartz is no stranger to pioneering innovation. In 2001, he co-founded Xoom, transforming the way we send money internationally—a significant shift from the traditional queues at Western Union. The company went public in 2013 and was acquired by PayPal for $1.1 billion two years later. Following his success with Xoom, Hartz co-founded Eventbrite, which went public in 2018, revolutionizing how we purchase event tickets and making the process far more user-friendly.
After a successful tenure at Founders Fund, Hartz established his own venture capital firm, A* Capital, inspired by a computer science algorithm. In 2020, he identified a burgeoning trend: the SPAC (Special Purpose Acquisition Company) movement. His SPAC, aptly named “one,” acquired 3D printing company Markforged in a $2.1 billion reverse merger in 2021, coinciding with the heightened interest in SPACs across Silicon Valley.
Currently, Hartz is focusing on a new venture: investing in teenage entrepreneurs, not as a mere social experiment, but as a genuine investment strategy. His firm recently supported Aaru, an AI-driven prediction engine founded by a remarkably young visionary who wasn’t even old enough to hold a driver’s license at that time. Hartz is not alone in this trend; the rise of young, ambitious founders echoes the paths taken by tech luminaries such as Steve Jobs, Bill Gates, and Mark Zuckerberg, presenting a lifestyle choice increasingly popular among the youth.
Take Cory Levy, for instance, who started interning at Founders Fund, Union Square Ventures, and Techstars while still in high school. He dropped out of the University of Illinois after his freshman year and now runs Z Fellows, a one-week accelerator that provides technical founders—including high schoolers—$10,000 grants. Reflecting on his own journey, Levy noted that the community of college dropouts in tech has reached unprecedented levels, with discussions often happening over dinner where no one holds a college degree.
The shift toward valuing entrepreneurship over traditional education has gained such momentum that Y Combinator, known for its alternative approach to startup mentoring, has recently launched a program designed for students eager to start companies while still in school. This initiative allows students to apply, receive funding, and defer their participation in Y Combinator until after graduation, aligning perfectly with the organization’s countercultural ethos.
TechCrunch has been actively covering this ongoing trend, showcasing stories of young innovators. To further delve into this topic, I will be interviewing Hartz at the StrictlyVC event during TechCrunch’s lively Disrupt conference in San Francisco on Monday, October 27, where Hartz will be sharing insights on Tuesday, October 28.
In the meantime, here are some key excerpts from our recent conversation:
TechCrunch Event
San Francisco
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October 27-29, 2025
TC: While teenagers have always started companies, it seems like we’re witnessing a surge in this trend. Why do you think that is?
Kevin Hartz: Many bright students feel disengaged in traditional classrooms, resulting in a desire to explore entrepreneurial paths. Even at prestigious universities like Stanford, you’ll find students who, feeling uninspired, eventually drop out to pursue their ambitions. For instance, I worked with a company founded by three teenagers, including a CTO who was just 15 at the time—a scenario that is becoming increasingly common.
How does Z Fellows differ from the Thiel Fellowship, which was established by Peter Thiel?
The two programs are strikingly similar; however, the Thiel Fellowship operates as a nonprofit, which often limits aggressive outreach efforts. Cory has been actively cultivating Z Fellows into a dynamic program, tapping into a growing trend that acknowledges the allure of entrepreneurship over traditional education, especially amidst rising student debt and a changing academic landscape.
Does Z Fellows take equity in the startups it supports?
Z Fellows provides a modest initial grant of $10,000 without obligations, and there is a separate fund for future investments. While Cory sometimes invests $100,000 in pre-seed rounds, the primary aim remains to support young founders without strings attached.
Considering the statistics on graduates struggling to find jobs, how does that contribute to this movement toward entrepreneurship?
We are witnessing a significant cultural shift; more individuals are opting for self-employment or entrepreneurship over traditional employment in corporations. This transition is indicative of American individualism, as more people choose to forge their paths, be it through crypto trading or building startups, reflecting an “entrepreneurial hyperdrive” in the U.S.
While many want to be entrepreneurs, an increasing number might feel compelled to do so due to encroaching job market challenges, particularly with advancements in AI and technology.
Paul Graham once mentioned that a young founder’s life can become overwhelming when their startup gains traction. As a former young entrepreneur yourself, what do you think about funding a 15-year-old who might miss out on typical teenage experiences?
I found my own entrepreneurial journey exhilarating but fraught with difficulties. The intensity can overshadow youth experiences. Interestingly, at 17, one often displays a bravery that comes with youth, and it raises questions about the long-term impact of thrusting such responsibility onto young shoulders.
We are just beginning what I would describe as a tech super cycle, particularly in the AI domain. The pace of innovation is rapid, with companies like OpenAI and Anthropic leading the charge. As we explore application layers, many sectors still await disruption, and initiatives like Cognition, Decagon, and Sierra are just the tip of the iceberg in their long journeys ahead.
As a father of daughters, how do you feel about their educational paths? If they expressed a desire to start their ventures instead of pursuing college, how would you respond?
Our 17-year-old is currently applying to colleges because she longs for that experience. I’ve provided her with many opportunities to consider alternatives, and I plan to approach the same with our 13-year-old in the future.
Out of your investments over the past year, roughly what percentage involves teenage founders?
Around 20%.
And two years ago, what would that percentage have been?
Approximately 5%.
