TL;DR
At TechCrunch Disrupt, investors from Insight Partners, Moxxie Ventures and GV said Series A funding now demands clearer signals of repeatable growth, product-market fit and strong founder leadership. The panel warned that the market is more selective—deal sizes have grown even as fewer rounds close—and urged founders to be realistic about whether venture-scale funding is the right path.
What happened
During a TechCrunch Disrupt panel, three investors—Thomas Green (Insight Partners), Katie Stanton (Moxxie Ventures) and Sangeen Zeb (GV)—outlined the criteria they are prioritizing for Series A in the current market. The speakers noted a shift: overall round volume has declined while average deal sizes have increased, citing industry data. GV applies a disciplined approach focused on product-market fit, looking for consistent quarter-to-quarter demand growth. Stanton emphasized defensibility and a founder’s ability to repeatedly sell and expand in a sizable market. All three highlighted founder quality—passion, industry knowledge and technical chops—as a decisive factor. Green cautioned that not every company should pursue venture-scale investment and suggested some businesses are better off avoiding large capital raises unless they can realistically become very large. The panel also addressed AI: investors expect clear differentiation from AI startups but reminded founders that non-AI assets can remain attractive.
Why it matters
- Raising Series A now requires demonstrable, repeatable growth rather than one-off traction signals.
- Founder qualities—passion, domain and technical expertise—carry as much weight as metrics.
- AI interest raises the bar for differentiation, increasing scrutiny of product defensibility.
- Not every startup should chase venture-scale fundraising; founders should assess whether huge growth is realistic.
Key facts
- Panelists were Thomas Green (Insight Partners), Katie Stanton (Moxxie Ventures) and Sangeen Zeb (GV).
- Speakers said fewer rounds are closing but average deal sizes have increased, citing a study.
- GV evaluates startups using a formula that emphasizes product-market fit and consistent quarter-over-quarter demand improvement.
- Investors want evidence you can repeatedly sell and grow in a large and expanding market.
- Founders’ passion and persistence were cited as critical attributes by all three investors.
- Katie Stanton stressed the importance of building something defensible amid increased competition.
- Thomas Green advised against taking venture capital unless the company can become 'really big.'
- Panel took place at TechCrunch Disrupt (Disrupt 2025).
What to watch next
- Whether the decline in round volume paired with rising deal sizes continues into the next year (not confirmed in the source).
- How AI startups will differentiate amid growing competition and platform incumbents (not confirmed in the source).
- If more founders choose smaller, non-venture paths instead of pursuing large VC raises (not confirmed in the source).
Quick glossary
- Series A: An early-stage venture funding round intended to help startups scale product, go-to-market, and team after initial product-market validation.
- Product-market fit: The point at which a product satisfies a strong market demand, often evidenced by consistent customer acquisition and retention.
- Venture-scale: A business profile that can grow rapidly and capture a large market opportunity, typically justifying large VC investments.
- Defensibility: Attributes or advantages—such as proprietary technology, network effects, or regulatory moats—that help a company sustain competitive advantage.
Reader FAQ
What are the top qualities investors seek for Series A today?
Investors prioritize repeatable growth and product-market fit plus strong founder traits like passion and domain expertise.
Is AI necessary to attract Series A funding?
No—investors said non-AI companies can still be attractive, though AI companies must show clear differentiation.
Should every company pursue venture-scale fundraising?
Investors on the panel advised against taking large VC money unless the business can realistically become very large.
How does GV assess startups for Series A?
GV uses a framework that looks for product-market fit and consistent quarter-over-quarter demand improvement.
What does it take to raise Series A in today’s market? The goalposts have moved, the stakes are higher, and investors seem pickier than ever as the AI boom reshapes…
Sources
- Investors share what to remember while raising a Series A
- The Fundraising Checklist: 13 Proof Points for Series A
- What Investors Want From First-Time Founders
- 9 Things Founders Raising Series A Funding Should Know …
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