Raising a Series A round has become far more demanding than it was just a few years ago. Expectations are higher, competition is tougher, and investors are far more selective as market conditions continue to evolve alongside rapid advances in artificial intelligence.
At TechCrunch Disrupt, a group of seasoned investors shared their perspectives on what founders need to demonstrate if they hope to secure Series A funding in the current environment. The discussion featured Thomas Green from Insight Partners, Katie Stanton of Moxxie Ventures, and Sangeen Zeb from GV, formerly known as Google Ventures.
Their message was clear. While venture capital is still available, only companies that show real momentum, defensibility, and long term potential are likely to stand out.
Green pointed to recent industry data showing that fewer startups are successfully closing Series A rounds, even as average deal sizes continue to increase. In other words, capital is flowing to a smaller group of companies that can prove they are building something meaningful.
Stanton framed the challenge succinctly. According to her, it has never been easier to start a company, but it has never been harder to build a product or business that can truly withstand competition. With barriers to entry lower than ever, investors are looking for startups that can show why they will not be easily replaced.
For Zeb, evaluation starts with evidence of product market fit. At GV, the team closely examines demand trends over time, paying attention to whether growth is consistent and improving quarter after quarter. He emphasized that one strong period is not enough. Investors want to see a repeatable pattern that suggests sustainable traction rather than short term spikes.
Stanton echoed that sentiment, explaining that repeatability matters as much as raw growth. She looks for proof that founders can sell their product again and again, and that the market they are targeting is both large and expanding. Without that combination, even impressive early metrics can lose their appeal.
At the same time, Green cautioned founders against pursuing venture funding simply because it is available. Not every company needs to grow at venture scale, and not every business is suited for the expectations that come with raising large sums of capital.
He argued that taking venture money only makes sense if the company has the potential to become extremely large. For many founders, alternative paths such as sustainable growth or profitability without massive funding may be a better fit.
Beyond numbers and charts, all three investors stressed the importance of the founding team. Stanton said she pays close attention to a founder’s passion and resilience. Building a company is a long and often difficult journey, and investors want to back people who are prepared for that reality.
Zeb agreed, calling passion one of the most critical factors in any investment decision. Skills, experience, and strategy matter, but without genuine drive, it becomes much harder for founders to navigate setbacks and adapt when plans change.
The conversation also turned to artificial intelligence, which continues to reshape how investors think about opportunity and risk. Green reassured founders who are not building AI first products that they should not assume they are at a disadvantage. Strong businesses with clear value propositions can still be attractive, even if AI is not at their core.
For startups operating in crowded AI markets, differentiation is essential. Green said his team often returns to basic questions when evaluating these companies. They want to understand how a startup plans to stand out among incumbents, emerging competitors, and major platform players. Without a clear path to differentiation, even advanced technology may struggle to gain attention.
Stanton noted that she is particularly drawn to founders who combine deep industry knowledge with strong technical expertise. That blend often leads to more thoughtful products and better execution. Zeb added that he looks for founders who constantly push themselves to move faster and outpace competitors, rather than settling into early success.
Despite shifting market dynamics and changing trends, the panelists suggested that investor priorities have remained surprisingly consistent. Strong fundamentals, durable growth, and ambitious vision still matter most.
As Green put it, the bar for Series A funding is undeniably high. But for companies that can demonstrate the potential to build something exceptionally large, investors are still willing to take bold bets.
The discussion took place during TechCrunch Disrupt, one of the industry’s leading startup events, which continues to bring together founders, investors, and operators to exchange insights on what it takes to build and fund successful companies in today’s market.
Original Article Published by Techcrunch
