New Wealth Wave: How the Rich Are Getting Richer — and Younger

The number of ultra-wealthy individuals is increasing, and their average age is dropping. Why, and how? 

From the heads of established firms to enterprising “cryptobros” making their presence felt, income levels are rising like a king tide. There’s a shift in the face of affluence, and on the faces of the earners: fewer wrinkles, for a start.

The rich have always become richer, but they’re also getting younger. The average age of billionaires is decreasing, and a new wave of wealthy individuals, many under 40, is taking the world by surprise. Whether it’s the industries driving this change or the energy of the individuals concerned, there are implications both good and bad.

The transformation is about more than just age; there have been tectonic shifts in where and how money is created. While industries such as real estate and finance continue to generate fortunes, “new” wealth is coming from the fields of technology, cryptocurrency, and disruptive innovation.

But just how do these young people accumulate massive riches at such an early age? What effect does it have on the global economy — and inequality? Several trends seem to be driving the emergence of this band of youthful, ultra-wealthy individuals.

The Data Behind Wealth

Forbes noted that in 2022, the number of billionaires under the age of 40 had reached an all-time high. There were over 100 of them. Many have “self-made” status, rather than inheriting their riches. Compare this to the early 2000s, when the average billionaire was over 60, and had either inherited or progressively built their fortunes over decades.

According to Oxfam’s 2023 inequality report, the richest one percent of the population rake in money at astounding rates — and account for two-thirds of all new wealth generated globally over the past decade.

The narrative — older, affluent people growing steadily richer — has changed. In the new chapter, money is coming from (or going to, depending on your perspective) generations born in the era of digital disruption, venture capital, and global platforms.

Tech Titans

Technology is one of the clear driving forces. The digital revolution, right from the 1990s and the rise of the internet, has become a multi-trillion-dollar font of finance. Entrepreneurs who grew up in this age are skilled at coding and making apps, know how to grow platforms on a global scale; they also use fresh, and wildly successful, business models.

Take Mark Zuckerberg as a glaringly obvious example. The co-founder of Facebook (now Meta) became a millionaire in his early 20s. He personifies the entrepreneurial mindset of millennials and Generation Z, the college dorm-to-garage-to-billion-plus user base in a few mouse clicks. The founders of Snapchat, Twitter and Spotify followed similar paths.

In contrast to established sectors such as manufacturing or real estate, tech companies have low entry barriers. A single creative app or disruptive platform is the modern equivalent of a hit-single for a supergroup in the ’60s and ’70s: massive revenues in a matter of years. Months, even.

With the internet’s scalability and low overheads, young go-getters have used their “digital native” skills to launch billion-dollar businesses, often without any major investment.

Crypto and Decentralised Wealth

An important part of the rocketship sending young people into the financial stratosphere is the growth of cryptocurrencies and decentralised finance. Bitcoin, launched in 2009, was the first to receive widespread attention, and thousands of others — none quite as successful, to this point — have followed. Early adopters saw previously unthinkable gains.

Vitalik Buterin, the co-founder of Ethereum, was one. His was one of the world’s most powerful blockchain networks. By the age of 27, Buterin had hit the magic million thanks to the warp drive of Ethereum-based technologies in decentralised finance (DeFi) and non-fungible tokens (NFTs).

The attraction of crypto stems from its accessibility. Its volatility, of course, can work both ways. Unlike stocks or real estate, which require significant up-front funds and knowledge, anyone with an internet connection and a minimal investment can start trading digital assets. Platforms such as Binance and Coinbase have democratised finance for a global audience, enabling youngsters from wildly varied backgrounds to accumulate riches in record time.

Venture Capital: Rocket Fuel?

Along with tech and crypto, venture capital (VC) is another catalyst that sparks the wealth equation. Over the past decade, VC has grown in size and reach. Firms regularly raise billions in funding for early-stage enterprises. This backing gives young entrepreneurs a definite leg-up.

Start-ups are no longer limited to small markets. With the right funding, they can bloom overnight, and spread globally. Airbnb, Uber and Stripe boomed as a result of strategic VC investments, often propelling founders into the billionaire club while still in their 30s.
The innovation culture in digital hubs like Silicon Valley is inextricably linked to VC. Young founders with revolutionary ideas are prepared to take huge risks — which often (but by no means always) result in huge profits. This high-stakes game produces a lot of winners. We hear less about the losers.

Fame, Fortune, and Influence

One of the distinguishing features of today’s wealth development is the role played by social media. YouTube, Instagram, TikTok and Twitch have transformed regular people into overnight multimillionaires. Influencers, content creators and digital marketers are not just redefining celebrity, they’re capitalising on it.

Kylie Jenner became the youngest self-made billionaire in 2019 at the tender age of 21, according to Forbes. While her family name may have opened some doors, it was her mastery of social media and direct-to-consumer branding that propelled Kylie Cosmetics to billion-dollar status. Influencers such as Jimmy Donaldson (MrBeast) and Addison Rae have used their social media-follower tallies to net grand endorsement deals, merchandise- and brand partnerships.

Many of these household names began with nothing more than a smartphone, a pretty face, and a good idea. The rise of digital commerce, direct sales to consumers via social media platforms, has enabled swift monetisation. The platforms give entrepreneurs a global audience, something no generation before them enjoyed.

Old Money, New Tricks

It’s worth noting that conventional industries — finance, real estate, and manufacturing — still throw up the odd billionaires. But again, there is a generational difference: younger entrants approach the game differently. The younger crew, often heirs to wealthy corporate families, combine old money with new tech to boost their bank balances.

In real estate, creative organisations such as Opendoor are revolutionising the buying-and-selling process in what was once a ponderous, traditional sector. Younger investors aren’t just establishing portfolios, they’re using data, AI and predictive analytics to make better, faster decisions.

A new wave of fintech businesses, such as Robinhood, Revolut, and Square, have disrupted the traditional banking sphere. Younger generations are not only producing wealth, but democratising financial services. The old-school bankers, used to working in the domain of the wealthy, have been compelled to adapt or be left in the dust of their younger, tech-savvy competitors.

The New Wealth Class

The flood of young, wealthy people has implications for society and the global economy. On one hand, sudden riches can boost overall entrepreneurial activity, job creation, and creativity. On the other, it increases wealth disparity. The vast majority of young people are not benefiting from this economic boom; they’re dealing with university debt, stagnant salaries, and limited access to housing.

The gap between the ultra-rich and “the rest of us” has attracted the attention of authorities, and calls for legislative changes: higher taxes for the wealthy, greater corporate responsibility, and antitrust charges against monopolistic companies.

Younger billionaires are often more outspoken about social causes, with some — perhaps not that many — using their financial clout to address global issues such as climate change, education inequity, and public health.

The way young people earn their money is changing the conventional narrative of success. Wealth is no longer synonymous with privilege or decades of corporate ladder-climbing. It’s increasingly associated with innovation, risk-taking and digital nous, a new era in which the distinction between celebrity and entrepreneurship is blurred.

While this new class of youthful billionaires helps to drive economic development and innovation, the concerns about rising inequality are hard to ignore. The concentration of great wealth in the hands of very few isn’t entirely healthy.

As the world navigates this uneven playing field, the challenge will be to strike a balance between the benefits of the new wealth wave and the need for greater economic equality. The consequences of getting it right — or wrong — will be far-reaching.