VCs abandon old rules for a ‘funky time’ of investing in AI startups
If there’s one thing that VCs agree on when backing AI startups, it’s that AI requires a different investment approach than prior technological shifts. “It’s a funky time,” said Aileen Lee, founder and managing partner of Cowboy Ventures, onstage at TechCrunch Disrupt 2025. The longtime VC noted that the rules of investing have significantly shifted now that some AI companies are leaping from “zero to $100 million in revenue in a single year.” However, Lee also noted that, based on her firm’s research, Series A investors aren’t just seeking rapid revenue growth. “It’s an algorithm with different variables and different coefficients.” Some of the factors investors now measure, according to Lee, include whether the startup is generating data, the strength…
