Gen Z is Revolutionizing Startups: Discover Their Secret Weapon That Investors Fear!

In the rapidly evolving landscape of technology startups, a distinct wave of founders under 30 is reshaping the industry with their adept understanding of artificial intelligence (AI). Among them is **Arnau Ayerbe**, a 24-year-old co-founder of **Throxy**, a London-based company specialized in developing AI agents for sales teams. After a brief tenure as an AI engineer at **JP Morgan**, Ayerbe quickly realized that the future he envisioned did not lie in traditional corporate life. "I realized very quickly that the person to my right and to my left were going to be me in 20 years, and I didn’t want to become that," he stated in an interview with **BBC News**. Together with his high school friend **Pablo Jiménez de Parga Ramos** and university acquaintance **Bergen Merey**, also 24, Ayerbe's Throxy has successfully secured nearly **£5 million** in funding while achieving annual sales of **£1.2 million**.

This dynamic trio embodies a broader trend: Gen Z entrepreneurs, defined as those born between **1997 and 2012**, are entering the business world at unprecedented rates. According to data from **Enterprise Nation**, **62%** of UK Gen Z individuals aspire to launch their own ventures. The **British Business Bank's Start Up Loans program** further highlights this trend, revealing that loans to this demographic have doubled over the past five years. Their secret weapon? A seamless integration of AI, which they have mastered from an early age, utilizing tools such as pre-public **ChatGPT** models.

AI Fluency as a Generational Superpower

Ayerbe fondly remembers his experiences with early AI prototypes, describing the sensation as "magic" and expressing his belief that AI would fundamentally transform human work for the better. Supporting this notion, investment network **Antler** analyzed 3,512 founders of companies valued at over **$1 billion** and found that the average age of AI unicorn founders plummeted from **40 in 2020** to **29 by 2024**.

Across the Atlantic, **Forbes**' 2026 **30 Under 30 AI list** highlights this youth-driven surge, with the AI category raising nearly **$1.5 billion**—the most funded on the list. "AI is growing up—and so are the entrepreneurs who are driving the white-hot industry," noted **Forbes**. Among the standout names is **Jesse Zhang** of **Decagon**, valued at **$1.5 billion** after raising **$255 million** for AI-driven customer service agents catering to clients like **Duolingo** and **ClassPass**.

Silicon Valley has seen even bolder narratives, including a group of 22-year-old Indian-origin school friends at **Mercor**, an AI recruiting startup, who gained recognition as the world’s youngest self-made billionaires, according to **The Indian Express**. All of them are **Thiel Fellows**, emphasizing how AI reduces entry barriers. An executive from Mercor remarked, "In this day and age, with the help of AI, the threshold for entering the industry is very low," as reported by **36Kr**.

Trailblazers Shattering Age Barriers

<pBox CEO Aaron Levie articulated the advantage of AI in startups: "Because of AI agents, startups emerging today have so much more leverage than any other point in history. A 5 or 10 person company or team can now have the output of a team of 50 from just a few years ago," he shared on X. This sentiment resonates with Gokul Rajaram, who observed that traditional credentials are becoming less relevant in AI firms, where younger founders often outpace seasoned executives in fine-tuning AI models.

Not every successful entrepreneur is AI-native, however. **Rosie Skuse**, 29, CEO of **Molto Music Group**, launched her music agency in 2019 without formal business training. After facing setbacks due to COVID-19 cancellations, her company rebounded to a **£1.6 million** turnover in 2025. Skuse has also navigated age bias in her industry: "Some people wouldn’t even shake my hand... That shock factor was almost like a secret weapon," she explained to **BBC News**. Her youthful perspective has proven to be a competitive advantage against more established rivals.

The demanding nature of the startup life is evident in Throxy's rigorous schedule—9 a.m. to 9 p.m., six days a week. Ayerbe candidly admitted, "If I had known the amount of effort… I would probably have never started it," as reported by **BBC News**. Solo founders like **Peter Levels** have also found success, achieving over **$1 million** in annual recurring revenue (ARR) through AI without needing extensive teams, as noted in discussions on **X**.

Persistent Hurdles in the Fast Lane

Despite the promising landscape, veterans of the industry caution against the perils of rapid growth. **Lee Broders**, a serial entrepreneur, warns, "Speed can often hide fragile foundations... It’s great if you’re turning over a million pounds, but if it’s costing **£990,000**, and you’re actually making **£10,000** a year, that’s very different," he remarked in an interview with **BBC News**. **Sarah Skelton** of **Flourish**, who started her own business at 46, emphasizes the importance of networks, stating, "It’s really tough when you’re that young," reflecting the challenges young entrepreneurs face in building valuable connections.

AI introduces its own set of risks, including ethical concerns and skill gaps. Predictions from **PwC** for 2026 suggest that while **60%** foresee ROI boosts from AI, half struggle with operationalizing responsible AI practices. Nevertheless, startups that embed AI from day one often outpace their legacy counterparts, as **Scot Chisholm** pointed out on **X**. **Andrew Ng** emphasized the advantage of speed, noting that AI allows for rapid prototyping, enabling startups to conduct up to **20 tests monthly** versus just one previously, thereby accelerating growth in various sectors like lending and sales.

Blueprints for Enduring Triumph

For these young founders, the focus must shift towards sustainability. A survey by **Great Entrepreneurs** indicates that **91%** of U.S. small businesses are optimistic about 2025, with AI users planning hiring expansions at **50%**, compared to **36%** of non-users. In India, a duo from **Smartan.ai** is leveraging AI for sports injury prevention, supported by cricket legend **Ravi Shastri**, aiming to target **100 academies**.

Research from **ScienceDirect** confirms that AI significantly enhances productivity and resilience among young, educated entrepreneurs. A user on **X** aptly summarized, "AI integration now confers immediate edges in learning and efficiency." For those looking to ride this wave, the message is clear: harness AI fluency, build networks intentionally, test relentlessly, and scale prudently. The edge for Gen Z entrepreneurs isn't just in their tech savvy—it's their unencumbered agility in an era where youth is redefining dominance.