The world of investing is undergoing a generational shift—and not all of it is rosy. Gen Z investors, renowned for their digital fluency and enthusiasm, are increasingly expressing FOMO (fear of missing out)—not for trending memes, but for growth in private tech markets. Unlike earlier generations who gained early access to IPOs of firms like Apple or Amazon, today’s young investors are largely shut out of high-growth space due to strict accredited investor requirements.
The Private Market Dilemma
Many game-changing tech companies—think space-era disruptors and AI giants—opt to stay private longer, delaying IPOs and preserving high valuations in secondary markets. For Gen Z, this translates to investing in dreams that remain tantalizingly out of reach.
Average investors typically begin their investment journeys around age 19, favored with intuitive platforms for stocks and crypto. Yet when it comes to private markets, access becomes restricted—fueling frustration.
Alternative Pathways for Access
In response, Gen Z is resourceful. Secondary platforms like EquityZen and Forge offer entry points—but often charge high fees and impose stringent financial thresholds. Others explore ETFs or tokenized shares as workarounds, though these instruments may not deliver true equity ownership or capital returns.
Meanwhile, regulators are taking note. The proposed Equal Opportunity for All Investors Act aims to open private markets to a wider pool, potentially eroding the gatekeeping structure long held by ultra-wealthy accredited investors.
A Redefinition in Investing Behavior
This exclusion has also catalyzed innovation. Many young investors are pivoting toward alternative asset classes—collectibles, fractional real estate, and niche digital assets. Alongside early-stage trading instincts, Gen Z is demonstrating a willingness to explore unconventional avenues in their wealth-building journeys.
A Broader Implication
This trend underscores a significant shift in how capital flows and accessibility are structured. If left unaddressed, the privatization of the most profitable sectors risks widening generational wealth disparities. At the same time, rising pressure from young, digitally native investors might accelerate democratization of private investing.
Some financial experts caution that early access doesn’t guarantee success, and these young investors often overlook risks and lack operational transparency. Still, fostering access and building literacy—especially among Gen Z—could pave the way for a more inclusive investment landscape.
Source:
Business Insider – Gen Z investing FOMO in private markets
