Key Takeaways
- • Three venture investors at TechCrunch Disrupt, Shailendra Singh (Peak XV), Jahanvi Sardana (Index Ventures) and Janelle Teng Wade (Bessemer), described the Series A market as among the most difficult to raise in Singh's experience.
- • Companies are commonly closing rounds with as many as three different prices at once, which Singh called "a crazy sign of market froth" and Sardana dubbed the "tranchopalooza."
- • Singh warned that a correction could come in 2027, citing inflated ARR figures and AI-driven valuations, and said venture is as optimistic as he has seen in two decades.
- • Founders were advised to tell a persuasive story, attract high-quality talent, avoid cumulative revenue charts, and be "audacious in your ask."
- • Capital is flowing into defense, robotics and AI infrastructure, with neo-clouds and neo-labs still seen as open opportunities.
Summary
Panelists at this year's TechCrunch Disrupt said there is no single metric that defines a Series A today, and that raising one has become considerably harder. Shailendra Singh, a managing director at Peak XV, said he has never seen seed and venture markets as dysfunctional as they are now. He noted that investors set a high bar for backing companies that can break out, and that terms, round size and pricing vary widely. It is now common for a company to attempt to close a round with as many as three different prices at once, which Singh described as a sign of market froth. Jahanvi Sardana, a partner at Index Ventures, referred to the practice of splitting rounds into tranches as the "tranchopalooza."
On what investors look for, the panelists emphasized a persuasive account of why a founder can build a large company, along with access to top talent. Janelle Teng Wade, a partner at Bessemer, said capital is flowing into defense, robotics and AI infrastructure. She noted that foundational model companies are moving toward vertical integration, but that neo-clouds renting out AI compute and neo-labs focused on research still have room to grow. Metrics remain important but are less standardized, particularly for AI companies with heavy compute costs. Teng Wade cited Bessemer's early evaluation of Anthropic, when its margins were negative, as an example. The article notes Anthropic is reportedly preparing an IPO at a valuation of around $2 trillion and told investors this month it was profitable on an adjusted basis, a measure that excludes some costs.
The panelists warned against misleading growth metrics. Singh said cumulative revenue or cumulative ARR charts are a major red flag, as they obscure weak time-series data. He also said the market is full of false positives and that 2027 will likely bring a correction. Parting advice included avoiding rushed decisions, watching for weak product-market fit, and not letting fundraising trends dictate what to build, a concern Sardana raised. Teng Wade said her earlier advice to be conservative in projections no longer holds, and that founders should be audacious in their asks and tailor from there.
On what investors look for, the panelists emphasized a persuasive account of why a founder can build a large company, along with access to top talent. Janelle Teng Wade, a partner at Bessemer, said capital is flowing into defense, robotics and AI infrastructure. She noted that foundational model companies are moving toward vertical integration, but that neo-clouds renting out AI compute and neo-labs focused on research still have room to grow. Metrics remain important but are less standardized, particularly for AI companies with heavy compute costs. Teng Wade cited Bessemer's early evaluation of Anthropic, when its margins were negative, as an example. The article notes Anthropic is reportedly preparing an IPO at a valuation of around $2 trillion and told investors this month it was profitable on an adjusted basis, a measure that excludes some costs.
The panelists warned against misleading growth metrics. Singh said cumulative revenue or cumulative ARR charts are a major red flag, as they obscure weak time-series data. He also said the market is full of false positives and that 2027 will likely bring a correction. Parting advice included avoiding rushed decisions, watching for weak product-market fit, and not letting fundraising trends dictate what to build, a concern Sardana raised. Teng Wade said her earlier advice to be conservative in projections no longer holds, and that founders should be audacious in their asks and tailor from there.
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