What are the biggest concerns for investors in this year's Series A funding standards?

This year, the fundraising market is witnessing a clear shift. Not all startups are suitable for pursuing venture capital, especially when the goal is to build a truly large business. According to analyses from leading investors, receiving hundreds of millions of dollars should only happen if the company has the potential to become a market behemoth.

Changing Data, Diminishing Opportunities

Numbers show a different picture compared to before. The number of funded funding rounds is decreasing, but the size of each deal has increased significantly. This means investors are concentrating their capital on fewer companies, but they are demanding higher standards.

Competition is becoming increasingly fierce. An investor from Insight Partners commented: “Startups have never been easier to launch than now, but building something resilient has never been more difficult.”

Product-Market Fit is the Foundation

GV uses a clear formula to evaluate startups. First, they check whether the company has achieved product-market fit. Then, they analyze demand models to ensure each quarter surpasses the previous one. This process is not a one-time event but must be ongoing.

Moxxie Ventures emphasizes the same: “Can you prove that you can sell continuously? Can you demonstrate that you can grow steadily in a large and developing market?” These are the questions investors will ask.

Founders: The Decisive Factor

Beyond metrics, the passion of the founders is an indispensable factor. Investors seek leaders who can persevere on the long journey of building a company, those who do not give up when facing difficulties.

For AI companies, the requirements are even higher. Investors look for founders who combine industry expertise with technical skills, or those with relentless motivation, always asking how to outpace competitors. Only such founders can make a difference in a crowded market.

Not All AI Companies Have Opportunities

The AI wave is reshaping the entire industry, but this does not mean companies outside the AI field have no opportunities. GV investors warn: “Just because you’re not AI doesn’t mean you don’t possess very attractive assets with intrinsic quality.”

Even with AI startups, as the market is flooded with current large enterprises, new-generation competitors, and platforms, the key question remains: what will be the most prominent path for your company?

High Standards, But Not Impossible

Despite market volatility, investors’ core priorities remain consistent. Standards are very high, but if the results can be extremely large, investors are still willing to take that bet. The important thing is that you must demonstrate your capabilities, not just with words but with concrete numbers and real growth.