Investors share what they should keep in mind when raising a Series A

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

Scoreboards have moved, ratings have risen, and investors seem more selective than ever as AI reshapes the industry. At TechCrunch Disrupt, three investors — Insight Partners’ Thomas Green, Moxxie Ventures’ Katie Stanton, and GV’s Sangeen Zeb — broke down what to expect in the new year.

These numbers tell a clear story. Fewer circuits receive funding but businesses have grown, Green said citing research.

“It’s never been easier to start a company, and it’s never been harder to build something that’s secure,” Stanton said.

For Zeb, GV uses a different approach to evaluating companies. The company assesses whether startups have achieved product market success, and evaluates how they want to make sure each quarter is better than the last. “These results should always be done,” he said.

Stanton emphasized this point. “Can you prove that you can sell repeatedly? Can you prove that you can grow repeatedly in a large and growing market?”

But Green cautioned that not all companies should pursue economic growth. “It’s not worth taking this money unless you think it could be a big business, right?” he said. “Most companies don’t have to (go after) money. They don’t have to take millions of dollars.”

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

The team turned to AI. Green reassured the non-AI industry: “Just because you’re not AI doesn’t mean you don’t have something very beautiful, very familiar to you,” he said.

For AI companies trying to differentiate themselves in a crowded market, Green goes back to basics. “We try to understand, if it’s a very competitive market — (including) both next-generation competitors and platform players — what’s the best way to go?”

Stanton said he looks for startups that combine industry expertise with technology, while Zeb prioritizes continuous drive, looking for startups that constantly ask how they can move faster than the competition.

Despite the volatility of the market, the group said that the business priorities remain the same. “The bar is high, but if the results can be big, we’ll take (the bet),” Green said.