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Funding Barriers: Why Investors Overlook Young Founders

Michael ChenNovember 27, 2025
Funding Barriers: Why Investors Overlook Young Founders

Despite representing 40% of new business owners, founders under 25 receive less than 5% of venture capital funding globally. Our year-long study uncovers the implicit biases and systemic barriers behind this gap.

The Age Penalty

Investors consistently cite "lack of experience" when passing on young founders, yet our data shows that youth-led startups have comparable or better success rates in their first three years compared to older founders.

Breaking Through

We identify strategies that successful young founders have used to overcome these barriers, including building strong advisory boards, focusing on traction over credentials, and seeking alternative funding sources like angel investors and crowdfunding.

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