Investors share what to remember while raising a Series A

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

The goalposts have shifted, the stakes are higher and investors seem more discerning than ever as the AI ​​boom reshapes the industry. At TechCrunch Disrupt, three investors — Thomas Green of Insight Partners, Moxxie Ventures’ Katie Stanton and GV’s Sangeen Zeb — broke 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 grown, Green said, citing a study.

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

For Zeb, GV uses a specific formula to evaluate companies. The firm analyzes whether startups have achieved product-market fit and examines demand patterns to ensure each quarter outperforms the last. “That sequence should happen consistently,” he said.

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

But Green cautioned that not all companies should pursue venture-scale growth. “It’s not even worth taking this money unless you think it can be a really big business, right?” he said. “Most companies shouldn’t [pursue] venture scale. They shouldn’t be taking hundreds of millions of dollars.”

In addition to metrics, all three investors emphasized founder quality. Stanton said she looks for passionate founders who can endure the long journey of building a business. Zeb agreed. “Passion is still the most important thing,” he said.

The panel inevitably turned to AI. Green assured non-AI companies: “Just because you’re not AI doesn’t mean you don’t have a very attractive asset, an inherent quality to you,” he said.

For AI companies trying to differentiate themselves in a crowded market, Green returns to first principles. “We’re trying to understand if it’s a market with a lot of competition — [including] both established and next-generation competitors and platform players – what will be the prominent path?”

Stanton said she looks to founders who combine industry and technical expertise, while Zeb prioritizes relentless drive and seeks founders who are constantly asking how to move faster than the competition.

Despite market fluctuations, the panel suggested that core investor priorities remain consistent. “The child is tall, but if the result can be enormous, we will take it [bet]” Green said.