How to stand out in a crowded market: what shifts investors in favor of startups

During a panel discussion at TechCrunch Disrupt, a group of experienced investors revealed their criteria for evaluating young companies. Jyoti Bansal, founder-investor, Medha Agarwal from Defy, and Jennifer Neundorfer from January Ventures shared the secrets that truly influence funding decisions. Their insights are worth listening to: they review hundreds of pitches each year.

The main flaw of most presentations: unwarranted hype around trendy topics

The first and most critical mistake founders make is overusing popular buzzwords. Agarwal pointed out a paradox: the more a company talks about AI in its pitch, the less it has actually implemented it. According to the investor, truly revolutionary companies do not base their entire story on this — they simply demonstrate how it solves a real problem.

“Truly innovative founders will talk about their technology as an integral part of the product, but not as the core of the presentation,” Agarwal explained. This means investors are far from naive. They can tell when a startup is genuinely innovating versus just riding a trend in words.

Three questions investors pay the most attention to

Bansal structured what every pitch should answer. His framework consists of three critical components:

First block: market size and potential. The investor asks themselves — is the market large enough? Can this idea grow into a serious company? Most importantly, does it solve a problem that’s truly worth time and money?

Second block: founder’s uniqueness. Here, it’s not just the idea that matters, but specifically you. If the problem is interesting, then 20 other startups will try to solve it. Why will you win? You need something unique — this could be team members with exceptional expertise, inaccessible connections, or specialized skills in the field.

Third block: validation of the idea. Investors want to see proof that the idea works. This could be initial user feedback, first revenue, bookings from potential clients — anything that proves people are genuinely interested. Without this, the presentation remains just a theory.

These three elements together answer the magic question: can this startup become a billion-dollar company?

AI startups in a crowded market: how to truly stand out

The discussion also touched on the specifics of the AI segment, where competition is especially fierce. Neundorfer said she is attracted to companies that rewrite the rules of the game, rather than those that improve old processes by 5-10%. Business model novelty is worth more than marginal improvements.

For AI founders, Agarwal suggested a clear strategy:

• Clearly explain how AI technology gives your product a competitive advantage
• Detail your go-to-market and monetization strategy
• Show with numbers how you will be more effective than existing solutions
• Do not hide from competitors — be transparent about who else is doing similar things

“Some founders lost my trust because they didn’t mention competitors on the slide,” she said. Investors value honesty more than the illusion of monopoly.

Practical tips for navigating a changing landscape

Each investor added their recommendation for founders seeking success in a dynamic environment:

Agarwal urged keeping an eye on industry trends and understanding what the technological landscape will look like in 12-18 months.

Neundorfer emphasized the importance of ongoing communication with networks of other founders — this allows sharing tools, insights, and problem-solving approaches.

Bansal gave the simplest but most important advice: “Focus on building a great product.” Everything else is a detail compared to the quality of the core solution.

This set of perspectives from seasoned investors demonstrates that startup success depends not on panicked addition of trendy words to the deck, but on a deep understanding of the market, founder’s uniqueness, and real validation of the idea.