AI breaks ageism barriers for older entrepreneurs | TechTarget

Older Workers and the Role of AI in Startups

Older workers gain wisdom through experience. Now with AI, they can also leverage the latest technologies to develop startups, breaking down barriers of ageism and challenging the perceived skills advantage of younger developers.

As older workers become a larger part of the workforce, and as people live longer and healthier lives, these trends are increasingly important, said Katerina Stroponiati, a longtime venture capitalist. She recently founded Brilliant Minds, a New York City-based VC firm that focuses on funding startups created by entrepreneurs ages 50 and older.

Katerina Stroponiati

Investing in Older Entrepreneurs

In this interview, Stroponiati shares her investment approach and discusses the unique strengths of older workers.

Editor’s note: Responses have been edited for brevity and clarity.

The Need for Change

What inspired you to focus on supporting entrepreneurs 50 and over?

1. Katerina Stroponiati: There were many signals before I started Brilliant Minds. I used to run a fund where the majority of founders pitching to me were under 35, and those over 45, let alone 50, were often shy and lacked confidence, even if they were experts in their fields. I started wondering, why is this happening? In comparison, 20-year-old founders were always overconfident, even if they didn’t know what they were talking about.
2. We have an extended life span and health span in society, but even with advancements in longevity, we have an outdated societal framework around aging. My parents, healthy and energetic, were forced to retire, which led to a decline in their health and mental well-being. Everything is outdated, and it needs to change. Founders over 50 have three times more chances to have a successful outcome, to IPO, compared with those who are 30, but they are discriminated against.

We have this ingrained idea that when we get old, we’re no longer useful. This is wrong.

Embracing Longevity and Technology

Can you explain how your background in the longevity space influenced your approach to Brilliant Minds?

1. Stroponiati: I’m an engineer by training, and my investments have always been in deep tech and technology companies. My interest in longevity started when I noticed that the majority of those who live past 100 never stop evolving, never stop learning and are always contributing to society. This is about how our society treats aging — we treat it as a decline. We have this ingrained idea that when we get old, we’re no longer useful. This is wrong.
2. As an investor, I saw the gap in the market. If someone can start a startup at 60, why stop working at 65? It doesn’t make sense. I can work longer than that. The vision is about creating a growth engine — an engine of growth, right? It’s about maximizing the potential of each human being.

The Changing Landscape of Startups

Can you explain the basis of the shyness of older founders?

1. Stroponiati: Everyone knows that Silicon Valley discriminates against anyone over, I would say, 35. This happens for two reasons. First, it’s easier to manage younger people. Second, it used to be that developers were at the center, and there was this notion that you had to be young — under 35 — to be relevant. But this is not the case anymore. With AI now, developers are not at the center anymore. The majority of startups, whether the founders are 30 or 50 years old, are using AI as a copilot. These founders are experts in their fields, leveraging AI to accelerate their work. This trend is only going to grow.
2. Additionally, the new revolution isn’t digital — it’s demographic. The population is aging, and for the first time in U.S. history, we’ll have an equal number of Gen Z and boomer generations — around 70 million each. We’re going to have a multigenerational society, and if we focus on the youth, this doesn’t make sense.

The Role of AI in Overcoming Ageism

You’re saying that AI makes age less relevant in software engineering — is that the argument?

1. Stroponiati: The data shows that first-time founders over 50 use AI and cutting-edge technologies like blockchain. We have in mind that you can’t keep up with technology as you get older, but that’s not the case. For example, I invested in a company through Brilliant Minds, founded by a 56-year-old woman who has had an amazing career in e-commerce. She’s not technical, but she’s using AI to build a platform to improve e-commerce. She knows the problems in the industry, and she knows the solutions.

So the advantage younger people had — fresh out of school with the latest skills and more up-to-date knowledge — is evaporating with AI, letting older workers catch up and leverage these newer technologies?

Stroponiati: Exactly.

The Strengths of Older Workers

With that barrier eliminated, what specific advantages do people over 50 bring to the startup marketplace?

1. Stroponiati: When we think about how AI works, it requires us to be experts in our field and to be able to communicate effectively with AI, regardless of age. To do that, you need a deep knowledge of your space and to be a great communicator. You are a great communicator when you understand something and have clarity. These are the skills that everyone, regardless of age, needs to develop because of AI. At this point, it’s not about being a developer anymore — that’s become more of a commodity. The center, the value, lies with great communicators who can, with clarity, communicate to the machine. Older founders are better at this because of experience and wisdom.

Redefining Retirement and Embracing Wisdom

Ageism remains a factor in the corporate world. But as you pointed out, we have this huge reservoir of older workers now. What can you tell corporate managers about the value of older workers based on what you’ve learned in your own work with startups?

1. Stroponiati: To the corporate world, I would say the traditional view of older workers is outdated. The retirement system was designed when life expectancy was much lower, but today, if you’re healthy at 60, statistics show you could live in good health until 90 or even 95, especially for women. This current framework of retirement doesn’t make sense.
2. We need to rethink this framework. People who want to retire should have that option, but there should be an alternative for those who want to keep contributing, learning and evolving, and this is what I’m building. We need wisdom and experience.
3. I’m 40. I started my first startup at 26, yet I was trusted with millions. I have so much more knowledge and experience now, and I feel I’m my best version. Imagine the value of someone at 50 or 60 — you’re not getting worse with age, you’re getting better.

Patrick Thibodeau is an editor at large for TechTarget Editorial who covers HCM and ERP technologies. He’s worked for more than two decades as an enterprise IT reporter.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 8: Decent Work and Economic Growth

The article addresses the issue of ageism in the tech industry and the importance of providing equal opportunities for older workers to participate in the workforce and contribute to economic growth.

SDG 10: Reduced Inequalities

The article highlights the discrimination faced by older workers in the tech industry and the need to eliminate discriminatory practices to reduce inequalities of outcome.

SDG 17: Partnerships for the Goals

The article emphasizes the importance of partnerships between venture capitalists and organizations supporting entrepreneurs ages 50 and older to promote the inclusion of older workers in the startup ecosystem.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

The article highlights the need to provide equal opportunities for older workers and eliminate ageism in the tech industry, which aligns with Target 8.5.

Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies, and practices and promoting appropriate legislation, policies, and action in this regard

The article discusses the discrimination faced by older workers in the tech industry and emphasizes the importance of eliminating discriminatory practices, aligning with Target 10.3.

Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships

The article highlights the need for partnerships between venture capitalists and organizations supporting entrepreneurs ages 50 and older to promote the inclusion of older workers in the startup ecosystem, aligning with Target 17.17.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:

• Percentage of older workers in the workforce: This indicator can measure the progress towards Target 8.5, as it reflects the inclusion of older workers in the labor market.
• Percentage of startups founded by entrepreneurs ages 50 and older: This indicator can measure the progress towards Target 8.5, as it reflects the opportunities provided to older entrepreneurs to start their own businesses.
• Percentage of discrimination cases against older workers in the tech industry: This indicator can measure the progress towards Target 10.3, as it reflects the reduction of discriminatory practices against older workers.
• Percentage of startups funded by venture capitalists that focus on entrepreneurs ages 50 and older: This indicator can measure the progress towards Target 10.3 and Target 17.17, as it reflects the support and partnerships between venture capitalists and organizations supporting older entrepreneurs.
• Number of partnerships between venture capitalists and organizations supporting entrepreneurs ages 50 and older: This indicator can measure the progress towards Target 17.17, as it reflects the establishment of partnerships to support older entrepreneurs.

4. Table: SDGs, Targets, and Indicators

Source: techtarget.com