A closer look at how Gen Z is transforming how people play, connect, and optimize—reshaping market expectations across the Drive by DraftKings portfolio and beyond.

As thematic investors, we specialize in backing companies that align with our core pillars of Gaming, Fandom, and Human Performance. These are more than sectors to us. They are dynamic lenses that help us understand how people play, connect, and optimize themselves. But every so often, a broader consumer shift emerges that cuts across everything we do and reshapes how we think about product, brand, and value creation.

One of the most significant forces doing that today is demographic change. At the forefront is the rise of Gen Z, a generation that is redefining how products are built, how brands are experienced, and how value is captured.

Why Gen Z Matters

Gen Z is the first generation to grow up entirely in a digitally connected world. They have never known life without smartphones, social media, or instant access to information. Where Millennials watched the internet evolve from dial-up to mobile, Gen Z was born into a world that has always been online.

These platforms have not just entertained Gen Z, but they have educated and influenced them through constant exposure to curated versions of success, wellness, and wealth. Whether it is a viral fitness influencer, a crypto success story, or a parlay bet that turned $5 into $5,000, Gen Z has grown up believing these outcomes are not only possible but achievable in a short timeframe.

This generation is not just digital-first. They are outcome-driven, optimization-minded, and deeply responsive to opportunities that feel high upside. When you combine this orientation with the impact of the pandemic, namely the isolation this generation experienced during their formative years, you get a very different kind of consumer. One who blends digital savviness with a desire for real-world connection, and one who expects immediacy in both information and results.

These shifts in behavior and consumption are already reshaping each of our core themes. Let’s take a closer look at how that’s unfolding across the areas we know best.

Gaming: Quick Hits, Big Wins, and Viral FOMO

Gen Z’s approach to gaming is clear. They gravitate toward formats that are fast, emotionally charged, and offer the chance at a meaningful payoff. Traditional, slow-paced gameplay is losing ground to experiences that deliver instant feedback and the possibility of an outsized win.

This is why crash games, meme stocks, and parlay bets have gained so much traction with this generation. These formats share a common formula: low-cost entry, high potential upside, and just enough unpredictability to keep things exciting. A recent Morgan Stanley survey found that 60% of bettors aged 21 to 34 have placed parlays, a rate nearly 30% higher than the overall population. Similarly, around 30% of U.S. stock investors aged 18 to 24 have invested in meme stocks compared to 12% of investors ages 45-54.

It’s not just the payout that attracts Gen Z. It’s the emotional volatility, the rush of possibility, and the shareable nature of “just-missed” or jackpot moments. The appeal is simple: put down a small amount, take a swing, and hope to hit it big. Most of these bets won’t pay off, but the ones that do tend to go viral. Social media elevates these wins, creating a sense of FOMO that draws others in. It becomes a feedback loop of visibility, aspiration, and repeat behavior, which keeps Gen Z highly engaged and emotionally invested in the experience.

Our portfolio companies Triumph and Picklebet are built with this next-generation user in mind. Their products reflect how younger audiences approach gaming today, with an emphasis on immediacy, social sharing, and the thrill of high-upside outcomes. Beyond our portfolio, companies such as Stake, PrizePicks, and Fliff are also tapping into this shift, showing just how widespread and durable this behavioral change has become.

Fandom: Built for Speed, Filtered by Interest

In the world of fandom, Gen Z is not following the same playbook as previous generations. They are not watching long form content nor cable television. Instead, they scan TikTok, scroll Instagram, and jump from moment to moment.

A 2023 Pew Research study found that one-third of adults under 30 regularly get news from TikTok, a figure that’s up 255% since 2020. The trend holds in sports as well. 39% of Gen Z prefers watching highlights over full games, and only 28% watch live events on cable compared to 47% of adults overall. Exemplifying this trend, the popular sports highlights account House of Highlights has over 51 million followers on Instagram and 30 million followers on TikTok.

These social media platforms are not just where Gen Z watches, but they are also where their tastes are shaped, curated, and reinforced by algorithmic feeds. With an overwhelming amount of content at their fingertips, Gen Z has become experts at filtering. They expect content to be personalized to their interest and get to the point fast. Otherwise they get bored and scroll to the next piece of content.

This has major implications for how leagues, networks, and media startups build and deliver content. The next generation of media companies, such as Real Sports and Playback, will be those that understand how Gen Z consumes and how quickly their attention moves. We see a massive opportunity for platforms that prioritize speed, curation, and creator-led distribution.

Human Performance: Seeking Community and IRL Connection

While much of Gen Z’s behavior is influenced by digital platforms, we are seeing a meaningful shift in the world of health and wellness. After spending formative years in isolation during the pandemic, this generation is now seeking real-world connection. They are not just looking to exercise. They are looking for community, friendship, and shared experiences that bring people together.

Fitness has become one of the most powerful vehicles for this. It provides structure, routine, and a sense of identity, all within a social setting. In 2024, global participation in run clubs increased by 59%. A Strava survey found that 55% of Gen Z cited social connection as their primary reason for joining a fitness group. These aren’t just workouts. These experiences go beyond physical activity. They create micro-communities that offer consistency, belonging, and a meaningful counterbalance to isolation and anxiety.

We are witnessing this shift firsthand through our portfolio company Bandit Running. Bandit is not only a performance brand but also a community builder that helps people show up, participate, and stay engaged. As this trend grows, we believe a full enablement layer is forming around it. Training apps (Ladder), dating services (Lunge), and creator-led fitness programs are all positioned to benefit from the rise of socially driven wellness.

Why This Matters for Venture

Each of these examples tells a larger story. Gen Z is not just consuming differently, they are rewriting the rules of engagement across gaming, media, and wellness. They are creating new expectations around what products should do, how they should be delivered, and what kind of value they should offer.

For venture investors, this represents a significant opportunity. As Gen Z matures and their spending power increases, we expect new categories to be created entirely around their behaviors. At the same time, many existing categories will need to evolve or risk becoming obsolete.

At Drive, we will continue to invest in the sectors we know best, while also paying close attention to the broader forces influencing them. Among those, the evolving behavior of Gen Z stands out as one of the most impactful trends we’re tracking closely because what looks like a quirk today could be the foundation of a market-defining company tomorrow.

For founders, these shifts represent a new blueprint for building community, product, and brand. For our LPs and partners, they reinforce why we focus where we do - on the edge of behavioral change, where category-defining companies are born.