vc jennifer neundorfer explains how founders can stand out in a crowded ai market

Jennifer Neundorfer on Fundraising in the AI Era

Jennifer Neundorfer, a co-founder of January Ventures, recently appeared on the Equity podcast during TechCrunch Disrupt to discuss the current fundraising landscape, particularly within the rapidly evolving AI-driven market.

AI's Impact on Investment

Both founders and investors are demonstrating significant interest in AI. Neundorfer revealed that her firm is actively exploring the integration of AI to enhance operational efficiency, specifically in areas like market and competitive due diligence.

However, when evaluating companies, she expressed a preference for those focused on creating genuinely novel solutions.

Beyond Incremental Improvements

“My enthusiasm is most piqued by ventures leveraging AI not simply to achieve a 10x improvement, but to forge entirely new experiences, workflows, or user behaviors,” Neundorfer stated. “We prioritize fundamentally new approaches over incremental advancements.”

She acknowledged that identifying these truly innovative concepts is becoming increasingly challenging due to a growing sense of fatigue as many AI-based ideas begin to converge.

Standing Out From the Crowd

“Founders are succeeding when they can clearly articulate to investors what distinguishes their approach from the numerous other AI startups and why their team is uniquely positioned to succeed,” she explained.

Market Correction and Future Success

Regardless of whether an AI bubble exists, Neundorfer anticipates a potential market correction. She believes that many companies currently receiving substantial investment may not ultimately survive.

The companies that will thrive will be those that build “truly category-defining companies” and anticipate the next wave of technological advancement.

“Founders who can proactively anticipate market trends, innovate at the forefront of current capabilities, and prepare for future developments will have a distinct advantage,” she emphasized. “Those who prioritize understanding genuine customer needs over simply pursuing technological possibilities will be best positioned for success.”

From Media to Venture Capital

During the podcast, Neundorfer also shared insights into her professional background, including her previous roles at YouTube and 21st Century Fox.

“A significant part of my work involved engaging with individuals possessing groundbreaking technology,” she recalled about her time at 21st Century Fox. These interactions sparked her passion for working with early-stage founders.

The Evolution of an Investor

The transition to investing presented a steep learning curve. Initially, she frequently checked in with founders, offering detailed feedback on their businesses.

“While this approach is suitable in certain situations, it’s crucial to cultivate a strong relationship with the founder, providing support both in terms of business strategy and personal well-being,” she noted.

Experience and Impact

Now established in her role, Neundorfer mentors aspiring entrepreneurs through organizations like Techstars. According to PitchBook, she has completed over 50 investments with January Ventures, achieving several successful exits.

Navigating the Current Climate

Throughout the discussion, Neundorfer addressed the evolving venture capital market, funding disparities for minority and female founders, and the growing success of venture markets beyond San Francisco.

Her primary advice to diverse founders – and indeed, to all founders in the current environment – is to disregard external distractions and concentrate on building a strong, viable company.

“Focusing on factors beyond their control is unproductive and creates unnecessary anxiety,” she concluded.