Mitcham Associates Are Looking at Backing More Young Entrepreneurs Under 30

Toronto, Ontario, July 13, 2015 (Newswire.com) - As investors with sacks of risk capital hunt for the next Flipkart, Ola and Mu Sigma in India, they are betraying a bias, valuing energy over experience and tech-savviness over wisdom. It worked for them before — nearly all of India's startups with billion dollar valuations were founded by people while still in their 20s

Mitcham Associates Investment Director Alexander Small, said a big advantage young founders have over older ones is that they grew up in an electronic era. "Kids today have grown up on a diet of cell phones, video games — their habits and adoption of technology are formed early. So you are looking at cutting-edge ideas,"

With age on their side, founders in their 20s are able to commit prime years of their lives to their companies with laser-sharp focus. This, besides their ability to stay committed to their ideas or adapt and pivot if required, are big factors that make them lucrative bets for investors. Young entrepreneurs are basking in the attention. Aditya Rao, who founded services startup LocalOye two years ago when he was 25, in April signed a $5-million fundraise with Lightspeed Venture Partners and Tiger Global Management. Rao said he met eight investors and received four term-sheets before he closed the deal. "This is a once-in-lifetime opportunity for me. I can't do it when I'm 35-40 years old," he said. A big influence is the role-modelling effect of Silicon Valley, where legends such as Microsoft's Bill Gates, Apple's Steve Jobs, and Facebook's Mark Zuckerberg started their companies while in their twenties. Data collected by Harvard Business Review last year showed that at least 46% of all billion dollar startups globally have been founded by entrepreneurs under 35.