Investors share what to remember while raising Series A

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

The goals have changed, the risks are higher, and investors appear 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 — break down what they’ll 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 one study.

“Building a company has never been easier, and building something defensible has never been harder,” Stanton said.

For Zeb, Global Voices 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 last. “This sequence has to happen constantly,” he said.

Stanton echoed this priority. “Can you repeatedly demonstrate your ability to sell? Can you repeatedly demonstrate your ability to grow in a large, growing market?”

But Green cautioned that not every company should pursue growth at the enterprise level. “It’s not even worth taking that money unless you think it could be a really big business, right?” He said. “Most companies shouldn’t (pursue) scale projects. They shouldn’t have hundreds of millions of dollars.”

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

The committee inevitably turned to artificial intelligence. “Just because you’re not AI, it doesn’t mean you don’t have very attractive assets, or intrinsic quality to you,” Green emphasized to non-AI companies.

For AI companies trying to stand out in a crowded market, Green goes back to first principles. “We’re trying to understand, if this market has a lot of competition — (including) both incumbents and next-generation competitors and platform operators — which path will stand out?”

Stanton said she looks for founders who combine industry and technical experience, while Zep prioritizes relentless leadership, looking for founders who constantly ask how to move faster than the competition.

Despite market volatility, the committee suggested that investors’ fundamental priorities should remain constant. “The expectations are high, but if the result is impossibly huge, we will take that (bet),” Green said.