At TechCrunch Disrupt 2026, investors shared insights on how founders can successfully raise a Series A round amid a challenging and volatile market. Shailendra Singh of Peak XV highlighted that the current fundraising environment is among the toughest he’s seen in two decades, complicated by inflated valuations driven by AI hype and revenue metrics that may not reflect sustainable growth. He noted the unusual trend of rounds being divided into multiple tranches with different prices, which some call “tranchopalooza,” signaling market froth and uncertainty about company valuations and terms.

The panel, including Jahanvi Sardana of Index Ventures and Janelle Teng Wade of Bessemer, emphasized that a compelling narrative about a founder’s potential to build a large company remains critical. Startups that can attract top-tier talent also stand out. Investment interest is strong in sectors like defense, robotics, and AI infrastructure, where firms such as Anthropic have demonstrated that even with negative margins, market potential can justify hefty funding. However, honesty and clear, non-misleading metrics remain vital in building investor trust, with investors wary of overly aggressive presentation of cumulative or inflated revenues.

Looking ahead, investors warned that the current upswing in venture funding, particularly in AI, may be followed by a market correction as early as 2027. Singh urged founders to remain intellectually honest and focused on authentic product-market fit rather than chasing inflated metrics or catering too much to what’s currently trendy in fundraising. Sardana cautioned founders against tailoring their businesses solely around what investors are funding, advocating instead for a genuine vision and problem-solving mission.

For founders aiming to raise a Series A today, the seasoned investors' advice is grounded in resilience and strategic thinking. Singh encouraged founders to accept the inherent difficulty of building a company and to not rush into deals without solid fundamentals. Sardana stressed the importance of effective pitching without compromising the core product vision. Meanwhile, Teng Wade suggested boldness in fundraising asks to gauge the market, which can then inform the approach and scale of investment sought. Together, these perspectives provide a roadmap for navigating the current fundraising landscape with clarity and confidence.