TechCrunch Startup News VCs abandon old rules for a ‘funky time’ of investing in AI startups
4 snips
Nov 14, 2025 Venture capitalists are redefining their strategies for investing in AI startups. The landscape has changed dramatically, with companies scaling from zero to $100M in revenue at lightning speed. Investors are now focusing on new algorithmic factors and applying stringent standards earlier in the startup lifecycle. There's a lively debate over whether go-to-market execution or technical strength is more crucial for success. Meanwhile, the pressure is on AI startups to deliver features quickly, as the market remains full of potential yet lacks clear winners.
AI Snips
Chapters
Transcript
Episode notes
AI Investing Uses A New Algorithm
- VCs now treat AI investing as a different algorithm with new variables and coefficients.
- Factors like data generation, competitive moat, founder track record, and technical depth matter more now.
Stricter Series A Standards Hurt Fast Starters
- Rapid early revenue doesn't guarantee follow-on funding because Series A standards tightened.
- Investors now scrutinize seed-stage metrics and go-to-market execution more rigorously.
Prioritize Go-To-Market From Day One
- Focus early on building an exceptional go-to-market to attract and retain customers.
- Investors increasingly value sales and marketing strength alongside product quality.