I'm seeing more AI startups raise money this year. The market is active. But not all fundraising makes sense.
Here's what I look for when evaluating raises.
First, the use case. Is this solving a real problem? Or is it just another chatbot?
Second, the team. Do they have execution experience? Or are they first-time founders?
Third, the traction. Are they shipping? Or are they still building?
I've seen too many AI startups raise without real customers. They build in isolation. They launch to silence.
The ones that work ship fast. They get feedback. They iterate.
If you're raising in AI, have customers ready. Investors want proof, not promises.
I've backed teams that shipped before fundraising. They had actual users. They had real revenue. The raise felt natural.
Don't raise because the market is hot. Raise because you have traction.
See my investment criteria: harshith.vc
Fundraising should follow traction, not precede it.