Navigating AI Startup Funding in 2024: What Investors Really Want

Artificial Intelligence (AI) has emerged as a dominant force in the investment landscape, capturing an astounding $110 billion in funding in 2024 alone—a 62% increase from the previous year. This boom comes at a time when overall startup funding has experienced a 12% decline, illustrating a stark divide between the tech world’s focus on AI and other sectors.

But here’s the catch: merely adding "AI" to your startup’s name won’t guarantee you that much-coveted funding. As the initial excitement around foundational models begins to fade, investors are shifting their gaze toward startups that demonstrate real-world applications, advanced AI agents, and a clear path toward long-term profitability.

Understanding Investor Priorities

At the upcoming TechCrunch Sessions: AI, scheduled for June 5 at Zellerbach Hall, UC Berkeley, you’ll get insider access to what venture capitalists (VCs) are really looking for in AI startups. Esteemed investors including Zeya Yang from IVP, Jill Chase of CapitalG, and Kanu Gulati from Khosla Ventures will share insights on investment criteria across various stages, from seed rounds to Series C.

Meet the Experts

• Zeya Yang: With a successful portfolio featuring companies like Grammarly and Figma, Zeya has a reputation for helping founders refine their product-market fit and accelerate growth.

• Jill Chase: Leading investments in innovative AI applications at CapitalG, Jill specializes in the evolving use cases for AI and machine learning, as well as data infrastructure.

• Kanu Gulati: An experienced investor, Kanu has backed companies such as PolyAI and Kognitos. With over a decade of experience as a research scientist, his technical background gives him a unique perspective on evaluating AI ventures.

Engage with the AI Community

Don’t miss your chance to join this pivotal conversation at TechCrunch Sessions: AI on June 5. Purchase your tickets now and take advantage of Early Bird deals, saving up to $210. It’s an invaluable opportunity to learn firsthand what VCs hope to see from AI startups. You can register here.

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Conclusion

As AI continues to shape the future of technology and investment, understanding what drives funding decisions is crucial for startups aspiring for success. The TechCrunch Sessions: AI event will not only highlight the best practices in securing funding but also foster connections that can propel your venture forward.

The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.