Sweatshirts in the C-suite: The era of Gen Z CEOs unfolds as we enter 2026

The typical image of a CEO has changed over the years—from someone in a suit with grey hair to a much younger person in a sweatshirt.

According to recruitment firm Teamlease, about 40% of graduates from tier 1 colleges are opting to build startups. “STEM (science, technology, engineering, mathematics) graduates learn many core skills early on and because of Gen Z’s agility, they are opting to build their own company,” says Neeti Sharma, chief executive, TeamLease.

Also read: From clubbing to kirtan, Gen Z find a new groove in bhajan raves


“Within IIT Madras, last year, we incubated 103 startups,” says Prabhu Rajagopal, professor at IIT Madras and founder-chairman of Plenome, a healthcare AI startup. Half “came from outside and the other 50% from within our own community.”

Gen Z founders and their startups made headlines in 2025 for drumming up funding and becoming billionaires. The rise of quick commerce platform Zepto, 10-minute domestic help service app Pronto and US-based Mercor signals a shift. They’re backed by the likes of General Catalyst, Y Combinator, Nexus Venture Partners, Glade Brook Capital, StepStone Group and Felicis Ventures, which shows that venture capital firms are no longer focusing on experience but are willing to back good ideas.

“Age is never an investment filter for us,” says Anuvrat Jain, principal at Lightspeed. “The real question for investors is how clear and articulate a founder is both in their thinking and in how they explain their idea.”

Also read: Is AI boom overhyped, unreliable? Zoomers question hype bubble

in how they explain their idea.” Teamlease’s Sharma says AI and clean energy are two areas in which Gen Z-founded companies abound. Sam Altman-backed startup Induced AI was founded by two Indian-origin teenagers, Aryan Sharma and Ayush Pathak, in 2023. It’s secured $2.3 million in funding.

Lightspeed’s Jain says that about six to 10 of his portfolio companies are founded by people under 30. At Prosus, the bet is similar. “Young founders are closest to the customer,” says Saurav Jain, principal at Prosus Investments. “We are genuinely excited about backing them.”

Adarsh Menon, partner at consumer-focused VC firm Fireside Ventures, says, “We are going to see more startups founded by Gen Z in the consumer segment specifically in fashion, beauty and nutrition.”

If 2025 was about Gen Z proving they can build large companies, 2026 will be about entering sectors with potential such as defence, aerospace, chemicals, AI and deeptech, according to investors