Gen Z “would refuse funding for ethics”

According to a new study, 96% of Gen Z entrepreneurs would reject a potential investor’s money based on moral and ethical objections.

New research commissioned by Connectd, a growing market that connects startups with investors and consultantsemphasizes the importance of ESG credentials for new business leaders.

The study, conducted by Censuswide, surveyed 50 Gen Z entrepreneurs (aged 18 to 24) and 50 entrepreneurs aged 25 and over to uncover the changing priorities among each group.

“This study demonstrated the shift in focus for the new wave of entrepreneurs, who are increasingly prioritizing ethical and social purpose when selecting their partners,” said Roei Samuel, serial entrepreneur, investor and CEO of Connectd.

“This can only be a good thing for future business leaders, ensuring that ESG is at the forefront of the company’s growth from now on.”

While funding remains the number one investor benefit, the study found that 80% of Gen Z investors value their network and connections, which drops to 63% for people aged 25 and over.

More than half (58%) of Gen Z entrepreneurs consider an investor’s green credentials when deciding who to partner with.

Samuel added: “Investors need to be aware that their ESG credentials are in the spotlight like never before. They can make it a real point of differentiation when collaborating with new businesses. “

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The research also found marked differences in how entrepreneurs across the generation gap seek investment. The vast majority (82%) of Gen Z entrepreneurs use online platforms to find potential funding, compared to only 65% ​​of older founders, who tend to use more traditional paths like friends, family, and legacy networks.

Latika Vij, Head of Investor Relations at Connectd, added: “The drive and dynamism of entrepreneurs does not change across generations, but ethical and social change is clearly underway. This entails an additional burden for startup investors to put ESG initiatives at the center of their strategy to attract new startups into their portfolios ”.

The study also found a generation gap in the use of social media, with 72% of Gen Z founders using sources like Linkedin to search for investors and only 60% of founders over the age of 25 doing the same.

Gen Z “would refuse funding for ethics”

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