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.
Key Insights from Investors
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. “The burden is high to convince any top firm that you are amongst the few special companies that can break out.”
Singh noted that the dispersion is very high on the terms founders might get, how much capital they can raise, and what terms they can raise it. It’s common now to see a company trying to close a round with as many as three different prices at once.
““[I]’s a crazy sign of market froth,” he said. “We’re calling it the ‘tranchopalooza,’” Sardana added, referring to the way rounds are being split into tranches, or separate chunks.
What Investors Look For
Beyond the warnings, the investors laid out what they look for in a Series A pitch, including a persuasive story about why a founder has a shot at building a big company.
““Founders who can attract very high-quality talent have an advantage,” Singh added.
Teng Wade mentioned that capital is flowing into areas such as defense, robotics, and AI infrastructure. She also noted that foundational model companies are moving toward vertical integration, but there’s still room for newer players, including neo-clouds that rent out AI computing power and neo-labs focused on AI research.
