Challenging age bias in venture capital
Early phase venture capitalist, Katerina Stroponiati, has criticized investment strategies that tend to favor younger entrepreneurs, believing this leads to a misguided allocation of resources.
Claiming that such bias leaves behind founders over 40, she suggests it unfairly prejudices seasoned professionals while missing out on their unique perspectives and experiences.
According to Stroponiati, age should be recognized as an asset for entrepreneurial success, and not a restriction.
In a call for diversified investment portfolios, she urges support for initiatives led by older entrepreneurs, arguing this approach could unlock untapped markets and encourage entrepreneurship across all ages.
Stroponiati leads the Brilliant Minds investment group, aimed at supporting entrepreneurs who are 50 or older.
She notes the existence of age-related bias in venture capital which she believes hampers industry growth, and her investment group aims to combat this bias and democratize resource access.
The entrepreneur insists that contrary to popular belief, older business starters bring valuable knowledge and experience, enabling them to establish sustainable and profitable companies.
Research backs Stroponiati’s position, suggesting that entrepreneurs over 50 are three times more likely to enjoy significant business success.
However, it is still a common occurrence for Silicon Valley investors to primarily back younger entrepreneurs, indicating a bias towards perceived ingenuity, tech-savvy skills, and risk-taking potential.
Stroponiati urges for a shift in perspective to acknowledge the contributions of all ages in entrepreneurship.
Former angel investor Stroponiati observed a trend wherein older startup founders often lack confidence due to investor discrimination – an issue she actively fights against.
She now deliberately supports older entrepreneurs that are usually overlooked due to age bias, thus addressing a significant void in the startup industry.
Stroponiati cites supporting a 72-year-old music app founder as one of her most notable investments.
She points to the rise of the internet and iPhone as contributors to age bias in Silicon Valley.
However, Stroponiati also notes a changing societal perspective that sees older non-tech professionals becoming crucial collaborators in startups owing to their specialized skills.
Stroponiati argues for a more inclusive society that embraces all four generations, claiming that investors who overlook entrepreneurs in their 60s are out of touch with current needs and restrict potential development.
