How to make your startup stand out in a crowded market, according to investors

At TechCrunch Disrupt, three investors took the stage to break down what makes — and breaks — pitches. Jyoti Bansal, founder-turned-marketer; Medha Agarwal of Defy; and Jennifer Neundorfer of January Ventures shared with the crowd their candid views on what works in rail – and what doesn’t.

Their biggest pet peeve? Buzzword overload.

While the founder says that AI in the game, Agarwal said, the limited AI that a company can use. “People who are doing innovative things, they talk about it, and it sticks, but it’s not central to what they’re talking about,” he told the audience.

Bansal, who built and sold several companies before becoming an investor, broke down business expectations into three key questions. First, they ask if there is a large enough market to solve it. Does the founder’s idea have the potential to become a big company? And is the problem they are solving really worth solving?

The second thing investors want to know is why this the founder must create the company. “There has to be something special about you,” Bansal told the group, adding that this includes having special members on the startup team or having special skills. “How can you win? If the problem is interesting, there will be 20 other companies trying to solve it, so how can you win and what are your chances?”

The third thing investors want to see, Bansal said, is assurance. “Traveling with customers,” he said. “Verification can be a customer base, money, something else, but some kind of verification.”

These three questions, Mr. Bansal said, all lead to the ultimate litmus test: Can this be a billion-dollar company?

The panel also highlighted how AI startups can differentiate themselves as the field becomes more crowded. Bansal emphasized the importance of domain expertise and a clear competitive strategy. Neundorfer said the companies that interest him are those that support new systems rather than simply improving existing systems.

Agarwal gave some very smart advice to startups, saying that they need to explain how AI technology can help their business; define clear strategies to go to market; and show how their business can be more successful than their incumbents.

It’s also important to be honest about what your competitors are out there, he added. Some of you “have lost confidence in me because you didn’t have it on your slide,” he told the group’s founders.

Finally, the entrepreneurs shared advice for managing the fast-growing landscape. Agarwal encouraged the founders to stay ahead of the company’s development. Neundorfer recommended being connected to startup networks to share resources and information.

Bansal’s advice was simple: “Focus on building your business.”