Investors Share What to Remember When Raising a Series A

What does it take to raise Series A in today’s market?

The goals have changed, the stakes are higher and investors seem pickier than ever as the AI ​​boom reshapes the industry. At TechCrunch Disrupt, three investors – Thomas Green of Insight Partners, Katie Stanton of Moxxie Ventures, and Sangeen Zeb of GV – explained what they would be looking for in the new year.

The numbers tell a clear story. Fewer funding rounds are being funded, but deal sizes have increased, Green said citing a study.

“It’s never been easier to start a business, and it’s never been harder to build something that’s defensible,” Stanton said.

For Zeb, GV uses a specific formula to evaluate companies. The company analyzes whether startups have achieved product-market fit, examining demand patterns to ensure each quarter outperforms the previous one. “This sequence should happen consistently,” he said.

Stanton echoed this priority. “Can you prove you can sell repeatedly? Can you prove you can grow repeatedly in a large and growing market?”

But Green cautioned that not all companies should pursue large-scale growth. “It’s not even worth taking that money unless you think it could be a really big deal, is it?” he said. “Most businesses should not [pursue] enterprise scale. They shouldn’t take hundreds of millions of dollars.”

Beyond metrics, the three investors focused on the quality of the founders. Stanton said she’s looking for passionate founders who can endure the long journey it takes to build a company. Zeb agreed. “Passion remains the most important thing,” he said.

The panel inevitably turned to AI. Green assured non-AI companies: “Just because you’re not AI doesn’t mean you don’t have a very attractive asset, an intrinsic quality for you,” he said.

For AI companies trying to differentiate themselves in a crowded market, Green goes back to first principles. “We’re trying to understand, if it’s a market with a lot of competition… [including] both incumbents and next-generation competitors and platform players – what will be the path forward? »

Stanton said she looks for founders who combine industry and technical expertise, while Zeb prioritizes relentless drive, looking for founders who are constantly asking themselves how to move faster than the competition.

Despite market fluctuations, the panel suggested that investors’ top priorities remain consistent. “The bar is high, but if the result can be incredibly huge, we will do it [bet]” Green said.