Kevin Hartz’s Early Moves in Tech
Kevin Hartz has a history of spotting trends early. In 2001, he co-founded Xoom, transforming cross-border money transfers from long lines at Western Union to online transactions. Xoom went public in 2013, and PayPal acquired it for $1.1 billion in 2015. Hartz then co-founded Eventbrite, which went public in 2018, simplifying event ticket purchases for users worldwide.
After a stint at Founders Fund, Hartz launched his venture firm, A* Capital, named after a computer science algorithm. In 2020, he identified the SPAC boom early and co-founded the blank-check company “one,” which acquired 3D printing company Markforged in a $2.1 billion reverse merger in 2021, just as SPACs gained popularity in Silicon Valley.
The Rise of Teenage Founders
Hartz’s latest focus is teenage founders, not as a social experiment but as a deliberate investment thesis. His firm recently funded Aaru, an AI-powered prediction engine, where one of the founders was too young to drive at the time. The trend reflects the growing “dropout-and-build” movement popularized by founders like Steve Jobs, Bill Gates, and Mark Zuckerberg.
Cory Levy, for example, interned at Founders Fund, Union Square Ventures, and Techstars while in high school, later dropping out of the University of Illinois after freshman year. He now runs Z Fellows, a one-week accelerator providing $10,000 grants to teenage technical founders. Levy explains that at gatherings of young founders, it is not uncommon for most attendees to have no college degrees.
YC Supports Students Without Dropping Out
Y Combinator, known for reinforcing dropout culture, now offers a program for students who want to start companies while staying in school. Accepted participants can receive funding immediately and defer joining YC until after graduation, maintaining the accelerator’s countercultural ethos while supporting student entrepreneurs.
Why Teens Are Starting Companies
Hartz observes that bright, ambitious teenagers often find school unchallenging. Many are homeschooled or drop out of elite universities to pursue entrepreneurship. He cites an example of a team of founders aged 15, 16, and 18 who received backing from A* Capital, highlighting that supporting teenage founders is becoming more common.
Hartz compares Z Fellows to the Thiel Fellowship, noting that the nonprofit structure of Thiel Fellowship may limit its reach. In contrast, Z Fellows provides practical support and follow-on funding to teenage founders, helping them scale their companies without equity obligations at the initial stage.
Shifting Workforce Dynamics
Hartz highlights broader trends driving teenage entrepreneurship. With traditional jobs becoming scarcer and AI increasing workplace efficiencies, many young people are motivated to start their own businesses. He anticipates a shift in 2026–2027 when independent contract work (1099s) may outnumber traditional employment (W-2s), reflecting growing individualism and entrepreneurial drive in the United States.
Supporting Young Founders
Investing in teenagers comes with unique challenges, including the risk that their startups could take over their lives. Hartz recalls his own experiences as a young entrepreneur and acknowledges both the exhilaration and difficulties involved. He sees this as part of a “super cycle” in tech, with AI and emerging applications creating new opportunities across multiple sectors.
Hartz on Family and Investment
Hartz’s own teenage children are exploring their paths, with his 17-year-old applying to college and seeking the traditional experience. He intends to support them as they consider alternatives, reflecting his belief in providing opportunities while recognizing the importance of personal growth.
Teen Investments Are Growing
Close to 20% of A* Capital’s recent investments involve teenage founders, up from roughly 5% two years ago. Hartz believes that supporting ambitious young entrepreneurs can generate innovative solutions and drive the next wave of technology startups.
Conclusion
Kevin Hartz’s approach demonstrates that age is no barrier to innovation. By backing teenage founders, his firm is embracing a growing culture of early entrepreneurship, aligning with larger trends in AI, independent work, and startup ecosystems. The combination of guidance, funding, and mentorship is positioning young innovators to create impactful companies that could shape the future of technology.
