Investors share what to remember when raising Series A

What does it take for the A Series to rise in today’s market?

The goalposts have moved, the stakes are higher and investors seem more selective 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—discussed what they’d be looking for in the new year.

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

“It’s never been easier to start a company, 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 by looking at demand patterns to ensure each quarter outperforms the previous. “This streak should happen consistently,” he said.

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

However, Green cautioned that not every company should pursue venture-scale growth. “It’s not even worth taking that money unless you think it might be a really big business, right?” he said. “Most companies shouldn’t [pursue] business risk scale. They shouldn’t get hundreds of millions of dollars.”

Beyond the metrics, all three investors emphasized the quality of the founder. Stanton said she looks for passionate founders who can endure the long journey of building a company. Zeb agreed. “Passion is still the most important thing,” he said.

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

For AI companies trying to differentiate themselves in a crowded market, Green goes back to basics. “We’re trying to figure out if it’s a very competitive market — [including] Both incumbents and next-gen competitors and platform players — what will be the path that stands out?”

Stanton said she looks like a founder who combines industry and technical know-how, while Zeb prioritizes relentless effort, looking for founders who are constantly asking how to move faster than the competition.

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