Welcome back to GenZtea's Newsletter, where I break down trends, industries, and tech with a Gen Z lens. I'm Natalie Neptune and I'm so happy you're here.

But first, let's dive into the events that are coming up..

Upcoming GenZtea IRL Events

As someone who's built thriving communities, become a LinkedIn thought leader, and was named a Top LinkedIn Voice for Next Gen, I've developed a keen eye for spotting trends before they explode. That's why I've created this master list of market trends – consider this your one-stop resource for understanding what's next.

Let's break down:

• The biggest predicted shifts - analyzing patterns across various industry reports and what they mean for Gen Z

• Hidden opportunities - uncovering the gaps that aren't being discussed in mainstream predictions

  Now... let's dive deep into these predictions! ⬇️

Noted: We have a BRAND NEW PAID TRIER if you want to get more than one episode per month: https://genztea.beehiiv.com/subscribe 

Rise of IRL Communities

Something fascinating is happening right under our noses. Gen Z IRL communities are popping up everywhere – from founder dinners in Brooklyn warehouses to creator coworking sessions in Miami cafes to investor mixers in SF lofts. But here's the problem: there's literally no centralized resource to find them.

You can't Google "Gen Z tech communities near me." There's no database, no directory, no insider guide. These incredible communities are thriving in the shadows, accessible only if you happen to know someone who knows someone.

That changes now.

I've spent months mapping the underground – tracking down the founders, infiltrating the group chats, attending the invite-only events. The result? The first-ever comprehensive database of Gen Z IRL communities.

Why so cheap? Because I believe information should be accessible to the Gen Z builders who need it most. But as this resource grows and becomes the go-to industry standard, pricing will reflect its true value.

State of Fundraising: The Private Equity-ization of Venture

The venture asset class is having an existential crisis.

The brutal math: 75% of funds from 2015 to today haven't returned a dime to LPs. That includes funds that are 10 years old. Let that sink in.

The DPI pressure is suffocating. GPs are getting crucified in LP meetings. These aren't struggling funds—these are marquee names with billion-dollar AUMs.

Here's what's actually happening:

LPs are capitulating in two ways:

1. Fund sales: Institutional LPs are dumping entire fund positions at 30-50% discounts just to get liquid

2. Direct secondaries: GPs are selling portfolio positions directly to give LPs something—anything—that resembles a return

The secondary market is about to explode. When IPOs dried up and M&A became extinct, we created a liquidity crisis that makes 2008 look quaint.

What founders don't understand: Your "supportive" investors aren't being patient by choice. They're trapped. They can't sell their positions without destroying their own fund economics.

The PE-ification is real. VCs are acting like private equity shops now:

• Demanding board control

• Installing operating partners

• Forcing bolt-on acquisitions

• Manufacturing liquidity events through financial engineering

The data doesn't lie: Average hold periods have extended from 5 years to 8+ years. IRRs are collapsing. The risk-adjusted returns of venture are approaching public markets.

Here's the kicker: The best funds are getting the best deals, and everyone else is fighting over scraps. The middle tier is getting decimated.

What this means for founders:

• Fundraising timelines are 3x longer

• Due diligence is 10x more painful

• Terms are getting worse, not better

• Your existing investors might not have reserves

The uncomfortable truth: We're not in a downturn. We're in a correction. The 2020-2021 vintage years were the aberration, not the norm.

Here's what I'm betting on instead: Companies that don't need traditional venture capital. Community-led growth businesses that can bootstrap their way to profitability through authentic audience building and can fundraise afterwards from VC.

The data is undeniable: Creators are building billion-dollar brands faster than most VC-backed startups. They're proving there's another path to scale—one that doesn't require burning through $50M to find product-market fit.

The winners will be the founders who can navigate this liquidity crisis by building real businesses with real communities, not just growth metrics.

The losers will be everyone else.

Bottom line: The venture model is broken. The asset class is cannibalizing itself. And most people are still pretending this is temporary.

It's not.

The question isn't when we'll return to 2021 valuations.

The question is: Are you building a business that can survive without them?

The Rise of Creator-led Brands

The creator economy just broke the traditional business playbook.

Creators are no longer just promoting products—they're building empires. Armed with loyal audiences, direct customer access, and increasingly sophisticated e-commerce tools, they're launching brands that don't just compete with traditional players—they're making them obsolete.

The numbers don't lie:

• Hailey Bieber's Rhode: $1 billion acquisition by e.l.f. Beauty. A personality-founded brand that went from Instagram posts to billion-dollar exit faster than most VCs can write a check.

• MrBeast's Feastables: $250 million revenue. A YouTube channel became a CPG juggernaut, proving that audience-first beats product-first every time.

• Emma Chamberlain's Chamberlain Coffee: $33 million revenue, 50% growth. From morning vlogs to morning brew empire.

• Series is founded by Yale students and they raised 3.1M by launching a reality TV show at a Mansion in the Hamptons for interns + winner gets 100K, proving that distribution is key (They announced this at my event here).

Here's what everyone's missing:

These aren't just success stories. They're proof that the entire business model has flipped.

Traditional playbook: Build product → Find audience → Hope for adoption

Creator playbook: Build audience → Test demand → Build product → Print money

The brutal truth:

Creators have something every Fortune 500 company is desperately trying to buy: cultural relevance, consumer trust, and real-time feedback loops.

Even Hollywood is pivoting. Reese Witherspoon's Hello Sunshine just launched Sunnie—a Gen Z-focused platform that's co-creating content with actual Gen Z talent. Why? Because 75% of 13-18-year-old girls say advertising rarely reflects how they actually talk, dress, or act. Smart brands are realizing authenticity can't be manufactured—it has to be collaborated on.

But here's the real kicker: The barrier to creation is collapsing. New virality isn't happening through invite walls or referral mechanics.

New virality is creator-to-creator. How many creators see what someone's doing and hop on the bandwagon. How those creations spread across platforms and algorithms.

The stormtrooper selfie meme is just the beginning. We're about to see companies launch through small creators who create replicable styles and content that people latch onto.

Example: This is a recommendation I gave to Series to get creators to post on LinkedIn about their new campaign:

The infrastructure is evolving too. New agencies like Offscript are emerging to handle video storytelling at scale, while others are systematizing the chaos of organic UGC. The tools are getting better, the processes are getting standardized, and the results are getting ridiculous.

The fastest way to build a waitlist isn't through traditional marketing:

What 99% of founders do:

• Build the entire app first

• Launch with zero audience

• Pray for virality

• Wonder why nobody cares

What the 1% do:

• Set up creator accounts

• Post 2x/day with Figma designs

• Run paid ads to those posts

• If cost per waitlist signup is <$1, people actually want it

Your waitlist should be growing BEFORE you finish building.

Because here's the math: If you can't get someone to join a waitlist for $1, you definitely can't get them to pay $10 for your app.

The market shift is undeniable: 74% of consumers have purchased a product because an influencer recommended it. That's not influence—that's commerce.

Today's creators aren't media partners—they're brand architects with sharp vision and deep audience loyalty The brands that will thrive aren't those trying to compete with creator success. They're the ones that co-create it.

The takeaway: Stop building in the dark. Start building in public.

The creator economy isn't just changing how products get promoted.

It's changing how products get built.

And if you're not building with creators from day one, you're already behind.

The line between influencer and entrepreneur has blurred beyond recognition.

The question isn't whether you need creators.

The question is: Are you ready to become one?

“I need a cracked genz kid to run tiktok to go viral for my app"

This is what 99% of founders say when they realize organic TikTok is printing money and they're not getting any.

Here's the problem: You're not looking for a "cracked GenZ kid." You're looking for a systematic approach to manufacturing virality.

The 1% who actually crack this code operate like precision machines:

Talent sourcing like Hollywood casting directors

• 3-5 creators maximum (quality over quantity)

• Low retainers + CPM bonuses (skin in the game)

• Real interviews, demographic matching to ICP

• Vetting process that would make Netflix jealous

Scientific approach to content creation

• Standardized creator warmup (anti-shadowban protocols)

• A/B testing frameworks that would make growth hackers weep

• Double down on winning formats, kill losers ruthlessly

• Active coaching + iteration (not spray-and-pray posting)

The brutal truth: Until recently, there wasn't a single end-to-end organic UGC agency worth recommending. The channel was underpriced, the talent supply couldn't meet demand, and everyone was winging it. So I personally experimented being on the UGC creator side a couple of months ago through Playkit. My campaign was for Hunch & I created videos along with some other TikTok creators.

The landscape is shifting. A few agencies are starting to crack the code as marketers systematize best practices. But you still have to dig. And the good ones get poached faster than you can say "going viral."

The unicorn agency looks like this:

• Brain-rotted GenZ kid who went viral once, just realized they can charge brands $5K to replicate it

• OR younger millennial who rode the 2020 TikTok wave and actually knows how to run a business

The investment reality: $5-20K/month for high-volume content (90+ videos minimum). Worth every penny if you've already gone viral once and have a winning format to jumpstart creators.

Even if you're not ROI-positive month one, $5-10K to validate formats is the best market research you'll ever buy.

Here's what nobody's telling you: The organic UGC space is still in its infancy. This is the early days of Instagram influencer marketing before the platforms we know today existed.

If you can do your own research and surround yourself with the right people, you'll be ahead of 99% of the market.

The fact that you're even reading this puts you in an elite bubble. Nobody is deeply studying this space.

We are unbelievably early to this marketing channel.

And early means opportunity.

The question isn't whether you need a "cracked GenZ kid."

The question is: Are you ready to systematize virality before everyone else figures it out?

The State of AI in Education: What's Happening Now and What's Next

The $700B education industry is about to get disrupted by its own workforce.

Teachers—not administrators, not EdTech VCs, not policy makers—are quietly orchestrating the largest technology revolution in classroom history. And they're doing it one lesson plan at a time.

🎯 The data doesn't lie:

• Magic School: 50%+ of U.S. teachers. Half the country's educators have already adopted AI for grading, feedback, and lesson prep. That's 1.6 million teachers who decided bureaucracy could wait.

• Alpha School: Elite outcomes, zero traditional teachers. Private schools deploying full-day AI tutors are producing results that make traditional education look obsolete. They're not just schools—they're proof-of-concept labs for the future.

• Enterprise scramble: OpenAI + Anthropic go edu. When the biggest AI companies launch dedicated education divisions, you know where the smart money is flowing.

Here's what everyone's missing:

While districts debate policy and parents worry about screen time, teachers have already voted with their workflows. They're not asking permission—they're solving problems.

This isn't just technology adoption. It's a masterclass in bottom-up disruption.

The trillion-dollar question: What happens when the people who actually understand learning get their hands on tools that can scale personalized education infinitely?

Answer: Traditional education becomes optional.

The sleeping giants are stirring. Textbook publishers still control most classroom content. Their next move—partner with AI startups or resist them—will determine whether they survive the next decade or become the Blockbuster of education.

But here's the real kicker: We're still in the stone age of AI education. Current tools help teachers work faster. The next wave? AI that teaches better than humans ever could.

Immersive, adaptive, infinitely patient tutors that know exactly how each student learns best. We're talking about the end of one-size-fits-all education.

The bottom line: The content layer is unbundling from the teacher layer. The best explanations are becoming standalone learning assets. And the educators who embrace this shift won't just survive—they'll become the architects of learning's future.

The smart money isn't betting against teachers. It's betting with them.

Because when 1.6 million professionals decide the future has arrived, the future has arrived.

The State of AI in Education: What's Happening Now and What's Next

The $700B education industry is about to get disrupted by its own workforce.

Teachers—not administrators, not EdTech VCs, not policy makers—are quietly orchestrating the largest technology revolution in classroom history. And they're doing it one lesson plan at a time.

🎯 The data doesn't lie:

• Magic School: 50%+ of U.S. teachers. Half the country's educators have already adopted AI for grading, feedback, and lesson prep. That's 1.6 million teachers who decided bureaucracy could wait.

• Alpha School: Elite outcomes, zero traditional teachers. Private schools deploying full-day AI tutors are producing results that make traditional education look obsolete. They're not just schools—they're proof-of-concept labs for the future.

• Enterprise scramble: OpenAI + Anthropic go edu. When the biggest AI companies launch dedicated education divisions, you know where the smart money is flowing.

Here's what everyone's missing:

While districts debate policy and parents worry about screen time, teachers have already voted with their workflows. They're not asking permission—they're solving problems.

This isn't just technology adoption. It's a masterclass in bottom-up disruption.

The trillion-dollar question: What happens when the people who actually understand learning get their hands on tools that can scale personalized education infinitely?

Answer: Traditional education becomes optional.

The sleeping giants are stirring. Textbook publishers still control most classroom content. Their next move—partner with AI startups or resist them—will determine whether they survive the next decade or become the Blockbuster of education.

But here's the real kicker: We're still in the stone age of AI education. Current tools help teachers work faster. The next wave? AI that teaches better than humans ever could.

Immersive, adaptive, infinitely patient tutors that know exactly how each student learns best. We're talking about the end of one-size-fits-all education.

The bottom line: The content layer is unbundling from the teacher layer. The best explanations are becoming standalone learning assets. And the educators who embrace this shift won't just survive—they'll become the architects of learning's future.

The smart money isn't betting against teachers. It's betting with them.

Because when 1.6 million professionals decide the future has arrived, the future has arrived.

THE FUTURE OF SPIRITS & LIQUEURS

Gen Z drinkers are ghosting the spirits and liqueurs aisle. They're NOT anti-alcohol. Young people are just drinking differently. They are prioritizing balance over restriction. And want spirits and liqueurs to get a health-conscious, mindful upgrade. New drinking behaviors are emerging.

From zebra striping to slow-sipping. They want to enjoy social and downtime occasions. But still feel good the next day. In this report, we are going to explore the key battlegrounds for Gen Z drinkers. We will analyze how alcohol brands can win the barfight and appeal to Gen Z consumers in 2026+.

These are the health and wellness trends that surface among Gen Z. Sugar-Free and Reduced Calorie spirits have been dominating weight-conscious drinking. But wellness priorities are beginning to shift. Gen Z is now looking for Bubble-Free spirits that Reduce Bloating and are good for overall gut health. Instead of just removing sugar and additives from drinks, Gen Z want enhancements and thoughtful inclusions.

Sweet is out. Complexity is in. Gen Z think sweet flavors are predictable – umami, herbal and roasted savory flavors are much more exciting.

Spirits with a sense of place – whether Traditionally Made or crafted in Small Batches – are shaping what's next in premium drinking. Gen Z want drinks rooted in global and local cultures.

French, Mexican and Japanese spirits (as well as HyperLocal or "Made in the USA") options are very popular. Authenticity is fundamental. Products must carry the story of their origin, their making and their maker. For Gen Z, drinking alcohol isn't just about taste or effect. They care about the connection, experience and human stories behind every sip.

Read more here.

Other Events + Resources I Found

Want to Go Deeper?

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What Does GenZtea Actually Do?

We get this question a lot! While we're known for our exclusive IRL events and newsletter, GenZtea LLC offers a full range of services to help brands authentically connect with the Gen Z startup community.

GenZtea LLC Services

Gen Z Consulting & Advisory - Strategic consulting and ongoing advisory roles on reaching, engaging, and building authentic relationships with Gen Z consumers, employees, and entrepreneurs. From product development insights to workplace culture recommendations and long-term strategic guidance.

LinkedIn Influencer Marketing - Leverage Natalie’s personal LinkedIn network and authentic Gen Z voice to amplify your brand message to founders, creators, and investors in the startup ecosystem.

Sponsored LinkedIn Content - Strategic paid posts on our personal LinkedIn account to reach our engaged professional network with your brand messaging and thought leadership content.

Speaking Engagements - Book Natalie Neptune for keynote presentations and panel discussions on the future of work, Gen Z in the workplace, startup ecosystems, and community building at your corporate events or conferences.

LinkedIn Workshops - Custom workshops for your team on LinkedIn strategy, personal branding, and professional networking specifically tailored for reaching and engaging Gen Z professionals.

Tech Event Strategy & Execution - Full-service event planning and execution for tech networking events, panel discussions, and community gatherings that authentically connect with the Gen Z demographic.

GenZtea Event Sponsorship Opportunities - Partner with us through financial sponsorship, venue partnerships, or product gifting (CPG & food) for our exclusive networking events.

Ready to work together? Reach out to [email protected] to discuss how GenZtea can help amplify your brand in the Gen Z startup community.