Jennifer Neundorfer, co-founder of January Ventures, recently discussed her advice for entrepreneurs on fundraising in this new, AI-driven world. She shared some of her insights during a live recording of the Equity podcast at TechCrunch Disrupt. Neundorfer, who lives in New York City, has a deep history in the technology sector. Her time at 21st Century Fox informs her opinions on the evolution of venture capital.
In her keynote address to the accelerator’s founders, Neundorfer made clear that differentiation is more important than ever for founders in a crowded market. She reminded attendees that founders who get out in front of the curve and are most aggressive about advancing what’s possible today are more likely to draw interest from investors. Moreover, trendsetters—people who predict what’s next—can make themselves even more alluring. As these technologies become ubiquitous, being able to clearly describe how a startup’s approach to the technology will differ becomes vital.
In our current climate, he said raising money is a challenge, especially for those from underrepresented communities. She underscored the backroom dynamics, or lack thereof, that lead to paltry funding levels for women and minorities. Yet even when opportunities do exist, they are not equally distributed. Like the other things on her list, she thinks this observation serves her bigger point about the shift in the venture market. She points to signs that a correction is overdue.
Neundorfer looks back fondly on her time at 21st Century Fox. There, she had hands-on experience with emerging technologies and provided valuable guidance to entrepreneurs. She continued, “That works for the easier situations, but truly it’s about establishing a relationship with the founder. It’s not just about critiquing the business; it’s about being an ally to them as a human being.” This move is more reflective of her dedication to developing entrepreneurial talent outside purely financial measures.
Neundorfer was able to talk about how January Ventures uses AI to make their own operational efficiency hypercharged. The firm uses AI tools to help with due diligence on macro trends and competitive analysis. She sees this intentional strategic alignment as helping them take smarter investment decisions while spotting the transformational innovations.
Like every new technology that comes down the pike, I love to see examples where someone’s using AI in really creative ways that are not just making what we have 10 times better but are creating entirely new experiences, workflows or behaviors,” she said. This long-term view allows us to glimpse Neundorfer’s hope that the best startups go after moonshots instead of mostly making existing products incrementally better.
As she continues through the venture landscape that’s shifting around her, Neundorfer encouraged founders to stay grounded in the face of outside noise. Otherwise, anything else turns into something they can’t direct, and the fear isn’t worth it,” she counseled. Her comments tap into a deep-seated fear. All of which means many of the companies pulling in investor funding today may be unable to sustain their high growth.
Neundorfer’s candor serves to excite and encourage the next generation of entrepreneurs. Just as importantly, they walk experienced investors through how they should change to meet a new market. She noted that many of the most successful efforts are coming from areas beyond the usual hotbeds, such as San Francisco. Third, it reflects a continued diversification of opportunity across the country.
