VCs are changing the way they invest. This change in the world was a central theme at last week’s Disrupt TechCrunch event in San Francisco from October 13-15, 2026. Now founders and investors alike are feeling these new pressures and new expectations. This challenge is only becoming more acute as AI technologies are developing at a breakneck speed.
Roy Lee, founder of Cluely, discussed his point of view. He raised the alarm on the risks of bringing to market products that fail to work properly, no matter how much social media hype they create. “Launching a product that barely worked, even with massive social media fame, may not always be the best idea,” Lee remarked, emphasizing the importance of product readiness in a competitive market.
Steve Jang, founder and managing partner of Kindred Ventures, expressed his disagreement with the notion that a strong go-to-market (GTM) strategy outweighs other factors for investors. As Jang pointed out, as critical as GTM strategies are, they aren’t the best predictor of success. I don’t think it’s 100% true to say that bad tech, amazing GTM succeeds and raises $10m and gets customers. I believe that it’s a minimum threshold to have both,” said Ingram.
Aileen Lee, a prominent force in venture capital, underscored the increasing stress AI startups are under. As such, these companies are under constant pressure to release product updates and features at lightning-fast speeds. Her firm has done research that shows a really counterintuitive trend. Series A investors are now bringing the discipline that used to be reserved for growth stage or even public companies to seed stage startups. “If you look at how much OpenAI and Anthropic are shipping, you’re going to have to figure out how to match how much you ship, how quickly and the quality of it,” Lee explained.
Jon McNeill, co-founder and CEO of DVx Ventures, continued that conversation. He noted that for the startups growing rapidly to $5 million in revenue, there’s a gap where many can’t raise follow-on funding. First, he said, these startups need to show they can acquire and keep customers. “I think this game has changed, and it is changing dynamically,” McNeill commented.
The best thing McNeill did was get the audience to understand a concept about investor expectations. “I think a lot of investors have figured out that the breakout companies, in most cases, don’t have the best tech,” he noted, emphasizing that the competitive landscape is more nuanced than previously thought.
The consensus among these industry leaders is clear: as AI technologies evolve, so too must the strategies employed by founders and investors. The conventional measurements of success are under the microscope now, more so than ever. Things have changed for Series A investors. Now, they want real assessments of a startup’s achievement potential and longevity, not just lightning-fast revenue expansion.
With AI making irreversible changes across industries and markets, founders are feeling pressure to come to terms with these changing expectations. Finding the right balance between technological innovation and good market-strategy savvy will be key. Finding this balance will determine the success of our future endeavors within our rapidly changing landscape.
