What are VCs looking for in AI startups at TechCrunch Disrupt?

VCs at TechCrunch Disrupt are prioritizing founder resilience, unique data advantages, and proven return on investment (ROI) for AI startups.

How can AI startups differentiate themselves in a crowded market?

Startups can stand out by demonstrating unique data flywheels, defensible business models, and solving true customer needs that cannot be replicated.

Which AI sectors are currently most attractive to investors?

Currently, AI-focused chat apps, coding assistants, and customer service solutions are particularly attractive to investors.

Home / Business and Economy / AI Startups: Prove ROI or Pivot Fast

AI Startups: Prove ROI or Pivot Fast

20 Dec, 2025

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Summary

VCs prioritize founder resilience amidst rapid AI market changes.
Startups must demonstrate true ROI, not just apparent product-market fit.
Unique data flywheels and defensibility are crucial for AI ventures.

Venture capital interest is overwhelmingly centered on artificial intelligence, with investors scrutinizing startups for resilience and tangible value. At TechCrunch Disrupt, VCs highlighted the need for founders to demonstrate deep domain expertise and honest product-market fit, especially as rapid growth can sometimes mask a lack of true return on investment for customers.

The fast-paced AI market necessitates a startup's ability to pivot, with investors looking for unique data 'flywheels' that differentiate them from competitors. Founders must articulate why their solutions won't merely become features within larger foundational models, presenting a clear hypothesis for defensibility.

Key AI sectors currently showing promise include chat applications, coding assistants, and customer service solutions. However, significant opportunities are anticipated across various industries, with AI-enabled marketplaces, robotics, and the digitization of traditional processes also being areas of keen interest for future investment.