Raising a Series A has become increasingly challenging as investors set higher standards due to the AI boom and shifting market dynamics. Investors like Thomas Green, Katie Stanton, and Sangeen Zeb emphasize the importance of achieving a defensible business model, product-market fit, and consistent growth. While fewer funding rounds are happening, deal sizes have increased, and the focus is on founder quality, passion, and the ability to navigate competitive landscapes. Despite the AI focus, non-AI companies can still be attractive if they possess unique intrinsic qualities. The key takeaway is that while the bar for investment is high, the potential for significant returns makes it worthwhile for investors to take calculated risks. This matters because understanding investor priorities can help startups strategically position themselves for successful fundraising in a competitive market.
