Raising Series A: What Investors Want in Today’s Market
The bar is higher than ever, but winning investors is still within reach—if you know what they’re really looking for.
Venture capital has shifted. Fewer deals are happening, but the ones that close are bigger, and investors are scrutinizing opportunities with unprecedented intensity. Speaking at TechCrunch Disrupt, top VCs from Insight Partners, Moxxie Ventures, and GV broke down how founders can crack their checklist in this AI-driven funding environment.
“Starting a company has never been easier,” said Moxxie’s Katie Stanton. “But building something defensible? That’s harder than ever.” This evolving landscape means Series A investors aren’t just betting on ideas—they’re looking for tangible proof.
Summiting Valleys and Proving Product-Market Fit
All three panelists prioritized one metric above almost everything else: product-market fit, the elusive chasm every startup must cross to access Series A. Yet definitions vary.
GV’s Sangeen Zeb prioritizes growth velocity: “Every quarter should outperform the last. That sequence should be happening consistently.” It’s not just initial traction—it’s repeatably scalable demand.
Katie Stanton looks for proven sales processes. “Can you repeatedly sell? Can you repeatedly grow in a big and expanding market?” Both signals point to market validation, not hype.
Even Insight Partners’ Thomas Krane, despite his firm’s mega-fund status, warns not every startup should chase venture scale. “It’s not worth taking capital unless you think the business can be really big,” he said. For many companies, smaller funding paths make more sense.
The Human Element: Founders Matter More Than Ever
Metrics get you to the table, but founders seal the deal. Passion, grit, and relentless execution formed a unanimous theme from the panel.
“Founders who can weather the entire journey—that’s what we back,” Stanton emphasized. Zeb agreed: “Relentless drive—asking how do I move faster than the competition—is non-negotiable.”
Particularly in AI, investors want founders coupling deep technical expertise with real industry knowledge. Differentiation in an oversaturated market requires more than just flipping on an API.
What About Non-AI Startups?
AI’s hype cycle could spook founders outside the category. But Krane reassured them: “AI or not, intrinsic quality matters most.” A well-run, niche, or underserved market can still command premium valuations—if it demonstrates genuine defensibility.
The Bottom Line: Bar High, but the Opportunity is There
Despite the tighter market, one truth remains: outsized outcome potential wins investment. “If the upside is impossibly big, we’ll still take that bet,” said Krane.
The investors stressed that no single silver bullet exists. Show clear growth, prove repeatable sales, choose big markets, and demonstrate that you’re the founder to bet on—and you’ll stand apart in this new Series A poker game.
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