So you’re trying to raise a Series B for your AI startup, huh? Let me tell you, it’s never easy. I mean, sure, you’d think with all the hype around AI, the money would just be pouring in, right? Well, not so fast my friend.
Here’s the deal. You see, there’s been a lot of funding rounds for generative AI companies lately, but the truth is, they’re starting to slow down. And with every startup out there claiming to be an “AI company,” it’s getting harder and harder for the real AI startups to stand out.
So if you’re looking to raise that Series B in the next six to 12 months, you better be prepared for a challenging fundraising environment. But don’t worry, I’ve got some strategies that might just help you out.
Tell them why AI matters
Now, I know you think your startup is all about AI, but is it really? I mean, everyone and their mother is trying to incorporate AI into their products these days. So if that’s all you’re doing, just slapping on some AI features, then claiming to be an AI startup, well, it’s not gonna do you any favors.
“For founders trying to raise a Series B for their AI startups in the next six to 12 months, a more challenging fundraising environment likely awaits.”
If AI is truly at the core of what you’re doing, you need to be able to explain why it actually matters. How does it make a measurable impact on your product? Does it give you a slight improvement over the competition, or does it completely blow them out of the water?
There are plenty of ways to show the impact of AI on your startup. You can use metrics like model performance, ROI, and TCO. You can also share case studies and success stories. The key is to demonstrate that AI is not just a buzzword for you, but a real game-changer.
But here’s the thing. OpenAI is a big player in the AI space, and they’re dominating. So you need to show how you’re different. What sets you apart? Do you have a unique dataset? A special workflow? Some killer domain expertise? These are the things that will make investors take notice.
Build that investor trust
Let me tell you, investors these days are no fools. They know how to sniff out the real AI startups from the imposters. With all these large language models floating around, it’s become easier and cheaper to build an “AI startup.” So you need to establish some ironclad credibility.