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Seed Series C: What VCS actually wants from AI startups

TechBrunchBy TechBrunchJune 18, 20252 Mins Read
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AI Investments reached $110 billion in 2024, and the 2025 fundraising environment is more competitive than ever. For early stage startups, it not only means more money in the market, but it also becomes more noticeable.

In a TechCrunch session: AI, Rebecca Bellan sat with three experienced investors. Kanu Gulati, partner at Khosla Ventures. Accel partner Sara Ittelson. They broke what they were really looking for when assessing AI startups from Seed to Series C. A message to the founder? Forget the perfect pitch. Focus on building trust, surviving the hype cycle, and being ready to mimic the moment you find the fit of the product market.

Listen to the full episode of Equity and hear what:

Why VCS is why founders should become obsessed with the perfect pitch and stop focusing on building real relationships. What is necessary to compete against a big incumbent without being crushed. Why consumer focus (and speed) still wins, even with B2B AI. How agents and automation are already rebuilding startup playbooks.

Equity will return on Friday with weekly news roundups, so stay tuned.

Equity is TechCrunch's flagship podcast produced by Teresa Loconsolo, posted every Wednesday and Friday.

Subscribe to us with Apple Podcasts, Cloudy, Spotify, and all casts. You can also follow Equity x and threads, @equityPod. For full episode transcripts, check out the full episode archive for those who prefer to read listening.





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