Investors break down how founders can raise a Series A today
Venture capital investors at TechCrunch Disrupt discussed the current difficulties of raising Series A funding, noting a 'dysfunctional' market and high valuation expectations. They emphasized that while AI and defense are hot sectors, founders must now navigate complex deal structures like 'tranchopalooza.'
Why it matters
This insight provides a realistic outlook for startup founders on the shifting expectations and increased scrutiny from investors in the current economic climate.
In today’s market, no single metric defines what a Series A is, or how to raise one. At this year’s TechCrunch Disrupt, three investors offered founders advice on raising one, and one of them tacked on a warning. With money pouring into AI and revenue numbers being inflated to justify sky-high valuations, a correction could come as soon as 2027.
The warning came from Shailendra Singh, a managing director at Peak XV, who spoke alongside Jahanvi Sardana, a partner at Index Ventures, and Jenelle Teng Wade, a partner at Bessemer. “Seed and venture, I’ve never seen it as dysfunctional as it is now,” Singh said, adding that the current market is one of the hardest to raise in that he has seen.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in