SEO Tips seo company Right here’s how we raised a Sequence B for our AI startup throughout a downturn

Right here’s how we raised a Sequence B for our AI startup throughout a downturn


Elevating a Sequence B isn’t straightforward, and it’s grow to be exceptionally troublesome within the final yr because the enterprise spigot slowed to a trickle. However it’s a unique story when you’re an AI startup, proper? In spite of everything, VCs are throwing cash on the AI house.

Not so quick.

Already, the headline-grabbing funding rounds for generative AI corporations are starting to gradual, and with virtually each startup calling itself an “AI firm,” it can grow to be tougher for true AI startups to face out.

For founders making an attempt to lift a Sequence B for his or her AI startups within the subsequent six to 12 months, a more difficult fundraising surroundings possible awaits.

So what can AI founders do to lift a Sequence B when AI is in every single place? As a founder who raised a $40 million Sequence B from prime traders in August final yr, I can share a number of methods that labored for us.

Convey the “why” behind AI

Chances are you’ll really feel like your startup is all about AI, however is it actually? Numerous startups are searching for methods to include AI into their merchandise. There’s nothing incorrect with including AI options, but when that’s all you’re doing, then claiming to be an AI startup only for the sake of it can diminish your credibility.

For founders making an attempt to lift a Sequence B for his or her AI startups within the subsequent six to 12 months, a more difficult fundraising surroundings possible awaits.

If AI is crucial to your answer, you need to be ready to clarify the measurable affect it has in your product providing. Do your fashions generate a number of factors of enchancment over the perfect accessible baseline, or does it characterize a big step-function leap from the established order?

You may convey AI’s affect in your startup in a number of methods, together with quantitative metrics like mannequin efficiency, enterprise worth measures like return on funding (ROI) and whole price of possession (TCO), and qualitative proof factors like case research and success tales.

However affect alone shouldn’t be sufficient. OpenAI’s domination of the AI house poses a risk to numerous startups, significantly people who act as wrappers to public fashions like GPT-4. In as we speak’s hyper-competitive panorama, it’s essential to articulate how your startup stands aside from main gamers.

For example, what moats does your enterprise have? Do you’ve got a helpful, proprietary dataset? A novel enterprise workflow? Area experience? These are all crucial methods to speak your startup’s aggressive edge.

Set up ironclad credibility with traders

After being inundated with AI startups, traders have grow to be savvier about figuring out what’s and what isn’t AI. With the accessibility of enormous language fashions (LLMs), constructing an “AI startup” has grow to be a lot simpler and cheaper.

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