If there’s one thing that VCs agree on when backing AI startups, it’s that AI requires a different investment approach than prior technological shifts. “It’s a funky time,” said Aileen Lee, founder and managing partner of Cowboy Ventures, onstage at TechCrunch Disrupt 2025. The longtime VC noted that the rules of investing have significantly shifted now that some AI companies are leaping from zero to $100 million in revenue in a single year.

Shifting Criteria for AI Startup Investments

However, Lee also mentioned that Series A investors aren’t just seeking rapid revenue growth. Her firm’s research suggests it’s actually an algorithm with different variables and coefficients. Factors investors now evaluate include whether the startup is generating data, the strength of its competitive moat, founders’ prior accomplishments, and the technical depth of the product. Depending on each company, the output of the algorithmic formula will be different.

Jon McNeill, co-founder and CEO of DVx Ventures, observed that even startups experiencing rapid early growth, reaching $5 million in revenue, often struggle to secure follow-on funding. He emphasized, “I think this game has changed, and it is changing dynamically.” Series A investors are now applying rigorous standards, once reserved for mature companies, to seed-stage startups. This shift means founders face higher expectations right from the beginning. McNeill added that many investors now realize the best tech doesn’t always win; the companies with the most effective go-to-market strategies often break out, because they attract and retain customers better.

Balancing Product Quality and Go-to-Market Strategies

Not everyone agrees on the primacy of go-to-market strength, though. Steve Jang, founder and managing partner of Kindred Ventures, argued that it’s not sufficient for a company to have only a great sales and marketing approach while having average technology. He thinks both strong technology and go-to-market execution are essential. While McNeill later acknowledged the necessity of a solid product, he reiterated the increasing sophistication investors are bringing to assessing go-to-market plans. Founders now must craft powerful sales and marketing tactics from the outset. The debate about technology versus go-to-market was highlighted at the event when Roy Lee, founder of Cluely, commented that launching a non-functional product, even if it has viral social media fame, is rarely a good idea.

Aileen Lee went further by suggesting AI startups are now under pressure to deliver updates and new features faster than ever, to preempt established companies from introducing similar offerings. Referencing OpenAI and Anthropic, she said startups must compete by shipping products quickly and ensuring high quality. Despite these high expectations for speed and growth, the consensus among panelists is that the AI sector is still in its early days. As Jang noted, there are no definite winners yet, even in the field of large language models, with strong competitors always emerging. This ongoing competition means startups still have the opportunity to challenge both industry veterans and quick-moving new entrants, ensuring the landscape remains dynamic and open.

Tags: investime AI, startup-et AI, kapital sipërmarrës, rritja e startup-eve, strategji go-to-market, konkurrenca në AI