How to Raise a Series A in Today’s Market - Advice From Investors

Founders heard a clear message at TechCrunch Disrupt: raising a Series A today is more complex than a single metric or formula. Three investors, Shailendra Singh of Peak XV, Jahanvi Sardana of Index Ventures, and Jenelle Teng Wade of Bessemer, outlined what they look for, warned about market froth, and offered practical advice for anyone preparing a pitch.

Market reality and the "tranchopalooza"

The panel described the current funding environment as the hardest in two decades. Singh said the burden on founders is high because investors are sifting through many companies that claim to be "special". He noted a growing practice of companies presenting three different price points in a single round, which he called a sign of market froth. Sardana labeled the split‑into‑tranches approach "tranchopalooza". The implication for founders is simple: investors expect clear, consistent terms, and overly complex structures may raise red flags.

What investors really look for

Persuasive narrative

All three panelists emphasized that a founder must tell a convincing story about why they can build a large company. Singh added that founders who attract high‑quality talent have a distinct advantage. Talent signals execution capability and helps investors assess the team’s ability to navigate growth challenges.

Target verticals

Teng Wade highlighted that capital is flowing into defense, robotics, and AI infrastructure. She also pointed out opportunities for newer players such as neo‑clouds that rent AI compute and neo‑labs focused on AI research. Founders whose product aligns with these high‑interest areas are more likely to capture investor attention.

Metrics and honesty

Metrics still matter, but they are less rigid than before, especially for AI‑heavy startups where compute costs are high. Teng Wade cited Anthropic’s early days, when margins were negative but the market potential was clear. However, Singh warned against presenting cumulative revenue or ARR charts, calling them "a massive red flag" because they can mask underlying performance issues. Honest, transparent data helps maintain credibility during a bull cycle.

Anticipating a correction

Singh warned that the current optimism could reverse as early as 2027. He described the market as full of "false positives" and suggested that a correction would weed out companies lacking strong product‑market fit. Founders should prepare for tighter scrutiny and avoid relying on inflated valuations to sustain operations.

Practical steps for founders preparing a Series A pitch

• Craft a clear, concise story, Explain the problem, your unique solution, and why your team can execute. Highlight any high‑caliber hires.
• Focus on high‑impact verticals, If your product serves defense, robotics, AI infrastructure, or emerging neo‑cloud/neo‑lab models, make that alignment explicit.
• Show transparent metrics, Use monthly or quarterly revenue figures instead of cumulative charts. Explain any negative margins in the context of strategic investment (e.g., heavy compute spend).
• Simplify the term structure, Avoid presenting multiple price points or tranche splits unless you have a compelling reason. Consistency builds trust.
• Prepare for a tougher market, Build runway that does not depend on ever‑rising valuations. Validate product‑market fit early and be ready to adjust projections.
• Be audacious but realistic, While Wade now encourages founders to ask big, she also suggests tailoring the ask based on market response. Start with a bold ask, then refine.

Closing thoughts

The panel’s advice reflects a market that is both opportunity‑rich and precariously inflated. Founders who combine a compelling narrative, strong talent, focus on hot verticals, and honest metrics will stand out. At the same time, they should brace for a possible correction in 2027 by building sustainable business fundamentals. Following the practical steps above can help founders navigate the current "tranchopalooza" and position their company for a successful Series A.

If you need help shaping your pitch, building the product, or navigating the funding landscape, reach out to us at Jones Web Designs. We specialize in turning ambitious ideas into reliable web applications and integrations that investors love.