VC Jennifer Neundorfer explains how founders can stand out in the crowded AI market

Jennifer Neuendorfer, co-founder of January Ventures, stopped by Equity’s podcast during TechCrunch Disrupt to chat about fundraising in this AI-driven market.

Founders and investors alike are obsessed with AI, and even Neundorfer said her company is looking for ways to use AI to make their work more efficient, such as to help with market and competition due diligence. As for startup companies, it favors founders looking to create something completely new.

“The thing I tend to get excited about is when I see someone using AI to do something that’s not 10 times better. It’s actually creating a completely new experience or workflow or behavior,” she said. “That’s what we’re looking at. Less incremental changes and more entirely new behaviors.”

This has become more difficult for founders because, she says, burnout has become more difficult as more AI ideas emerge themselves.

“I think what founders achieve is when they can communicate to investors why what they’re doing is different from dozens of other startups doing it, and why they’re the team behind it,” she said.

Whether we’re in a so-called AI bubble or not, Neuendorf says a market correction is likely coming, and many companies that get a windfall of investors’ money now may not survive. Winners will navigate this moment to build “companies that truly define the category,” and capture where technology goes next. “Founders who can stay ahead of the curve, build on the edge of what’s possible today, and build for what’s next,” she added. “Founders who are able to really read the market and understand what their customers want versus just building what is possible. These are the founders who will have an advantage.”

Elsewhere on the stage, she talked about her life before the adventure, where she worked at YouTube and 21st Century Fox.

“Most of what I did was meet people who had great technology,” she recalled of her time at 21st Century Fox. Meeting people and talking to them using technology was the part of the job that gave her the most joy and helped her realize how much she wanted to work with early-stage founders.

But the learning curve was steep when I decided to move into investing. In the early days, she said she was constantly communicating with the founders and providing detailed information about their companies.

“This is appropriate for some cases, but it’s really about the relationship with the founder, and not just supporting the impact on the company, but supporting them as a person,” she said.

She is now comfortable on the job. She serves as a mentor for several organizations, such as Techstars, and has made more than 50 investments in January Ventures, according to PitchBook, managing to secure some exits in the meantime.

Throughout the conversation, Neundorfer talked about the changing venture market, funding levels for minorities and women, and which venture markets outside of San Francisco are seeing success. Her biggest piece of advice for diverse founders right now actually goes to many founders working in this climate: ignore the noise and focus on building a good company.

“Anything else becomes something they can’t control, and worrying isn’t worth it.”