Latest news with #JillChase
Yahoo
3 days ago
- Business
- Yahoo
Why investing in growth-stage AI startups is getting riskier and more complicated
Making a bet on AI startups has never been so exciting -- or more risky. Incumbents like OpenAI, Microsoft, and Google are scaling their capabilities fast to swallow many of the offerings of smaller companies. At the same time, new startups are reaching the growth stage much faster than they historically have. But defining "growth stage" in AI startups is not so cut-and-dried today. Jill Chase, partner at CapitalG, said on stage at TechCrunch AI Sessions that she's seeing more companies that are only a year old, yet have already reached tens of millions in annual recurring revenue and more than $1 billion in valuation. While those companies might be defined as mature due to their valuation and revenue generation, they often lack much of the necessary safety, hiring, and executive infrastructure. 'On one hand, that's really exciting. It represents this brand new trend of extremely fast growth, which is awesome,' Chase said. 'On the other hand, it's a little bit scary because I'm gonna pay at an $X billion valuation for this company that didn't exist 12 months ago, and things are changing so quickly.' 'Who knows who is in a garage somewhere, maybe in this audience somewhere, starting a company that in 12 months will be a lot better than this one I'm investing in that's at $50 million ARR today,' Chase continued. 'So it's made growth investing a little confusing.' To cut through the noise, Chase said it's important for investors to feel good about the category and the 'ability of the founder to very quickly adapt and see around corners.' She noted that AI coding startup Cursor is a great example of a company that 'jumped on the exact right use case of AI code generation that was available and possible given the technology at the time.' However, Cursor will need to work to maintain its edge. 'There will be, by the end of this year, AI software engineers,' Chase said. 'In that scenario, what Cursor has today is going to be a little less relevant. It is incumbent on the Cursor team to see that future and to think, okay, how do I start building my product so that when those models come out and are much more powerful, the product surface represents those and I can very quickly plug those in and switch into that state of code generation?' This article originally appeared on TechCrunch at
Yahoo
3 days ago
- Business
- Yahoo
Why investing in growth-stage AI startups is getting riskier and more complicated
Making a bet on AI startups has never been so exciting -- or more risky. Incumbents like OpenAI, Microsoft, and Google are scaling their capabilities fast to swallow many of the offerings of smaller companies. At the same time, new startups are reaching the growth stage much faster than they historically have. But defining "growth stage" in AI startups is not so cut-and-dried today. Jill Chase, partner at CapitalG, said on stage at TechCrunch AI Sessions that she's seeing more companies that are only a year old, yet have already reached tens of millions in annual recurring revenue and more than $1 billion in valuation. While those companies might be defined as mature due to their valuation and revenue generation, they often lack much of the necessary safety, hiring, and executive infrastructure. 'On one hand, that's really exciting. It represents this brand new trend of extremely fast growth, which is awesome,' Chase said. 'On the other hand, it's a little bit scary because I'm gonna pay at an $X billion valuation for this company that didn't exist 12 months ago, and things are changing so quickly.' 'Who knows who is in a garage somewhere, maybe in this audience somewhere, starting a company that in 12 months will be a lot better than this one I'm investing in that's at $50 million ARR today,' Chase continued. 'So it's made growth investing a little confusing.' To cut through the noise, Chase said it's important for investors to feel good about the category and the 'ability of the founder to very quickly adapt and see around corners.' She noted that AI coding startup Cursor is a great example of a company that 'jumped on the exact right use case of AI code generation that was available and possible given the technology at the time.' However, Cursor will need to work to maintain its edge. 'There will be, by the end of this year, AI software engineers,' Chase said. 'In that scenario, what Cursor has today is going to be a little less relevant. It is incumbent on the Cursor team to see that future and to think, okay, how do I start building my product so that when those models come out and are much more powerful, the product surface represents those and I can very quickly plug those in and switch into that state of code generation?' Error in retrieving data Sign in to access your portfolio Error in retrieving data
TechCrunch
3 days ago
- Business
- TechCrunch
Cut through the AI hype and learn what really gets funded in 2025
AI investments hit $110 billion in 2024, and the funding landscape is more competitive than ever. This panel at TechCrunch Sessions: AI features three expert panelists: CapitalG partner Jill Chase; Kanu Gulati, a partner at Khosla; and Accell partner Sara Ittelson. They talked about why people are probably too worried about crafting the perfect pitch when they should be focused on building relationships; how to compete against establishment players; and why businesses should assume that if they are successful, bad actors will find your product. Most importantly, perhaps, the panelist discuss whether it's actually possible to compete against AI incumbents, or if everyone's exit strategy is just M&A.
TechCrunch
3 days ago
- Business
- TechCrunch
Why investing in growth-stage AI startups is getting riskier and more complicated
Making a bet on AI startups has never been so exciting — or more risky. Incumbents like OpenAI, Microsoft, and Google are scaling their capabilities fast to swallow many of the offerings of smaller companies. At the same time, new startups are reaching the growth stage much faster than they historically have. But defining 'growth stage' in AI startups is not so cut-and-dried today. Jill Chase, partner at CapitalG, said on stage at TechCrunch AI Sessions that she's seeing more companies that are only a year old, yet have already reached tens of millions in annual recurring revenue and more than $1 billion in valuation. While those companies might be defined as mature due to their valuation and revenue generation, they often lack much of the necessary safety, hiring, and executive infrastructure. 'On one hand, that's really exciting. It represents this brand new trend of extremely fast growth, which is awesome,' Chase said. 'On the other hand, it's a little bit scary because I'm gonna pay at an $X billion valuation for this company that didn't exist 12 months ago, and things are changing so quickly.' 'Who knows who is in a garage somewhere, maybe in this audience somewhere, starting a company that in 12 months will be a lot better than this one I'm investing in that's at $50 million ARR today?,' Chase continued. 'So it's made growth investing a little confusing.' To cut through the noise, Chase said it's important for investors to feel good about the category and the 'ability of the founder to very quickly adapt and see around corners.' She noted that AI coding startup Cursor is a great example of a company that 'jumped on the exact right use case of AI code generation that was available and possible given the technology at the time.' Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW However, Cursor will need to work to maintain its edge. 'There will be, by the end of this year, AI software engineers,' Chase said. 'In that scenario, what Cursor has today is going to be a little less relevant. It is incumbent on the Cursor team to see that future and to think, okay, how do I start building my product so that when those models come out and are much more powerful, the product surface represents those and I can very quickly plug those in and switch into that state of code generation?'
Yahoo
13-03-2025
- Business
- Yahoo
Learn what VCs want to see from founders at TechCrunch Sessions: AI
It's no secret that AI has eaten the lion's share of funding over the past couple of years, with investments into the sector surging 62% to $110 billion in 2024 alone, while startup funding overall declined 12%. Startups may think that just adding 'AI' to their company's name might help them secure that funding. But as the frenzy around foundation models has given way to a focus on real-world applications, AI agents, and long-term profitability, investors are seeking startups that can turn technical ingenuity into sustained traction. At TechCrunch Sessions: AI, happening on June 5 in Zellerbach Hall at UC Berkeley, top VCs Zeya Yang (IVP), Jill Chase (CapitalG), and Kanu Gulati (Khosla Ventures) will break down exactly what they look for at each stage of investment, from seed rounds to Series C. And they've got the investment history and on-the-ground expertise to back it up. Zeya Yang has invested in winners such as Grammarly and Figma and has a track record of working directly with founders to refine product-market fit and drive growth. Jill Chase leads CapitalG's investments in Magic, /dev/agents, Motif, and Abridge, and has spent the last several years focusing on emerging use cases for AI and ML, data infrastructure, and enterprise technology. Kanu Gulati has backed AI leaders PolyAI, Kognitos, and Moonhub and brings over 10 years of experience as a research scientist at Intel and Cadence and as an early engineer at Spyglass, and Nascentric. Buy your tickets now to lean in on the conversation at TC Sessions: AI on June 5 in Zellerbach Hall at UC Berkeley to get an inside look at what VCs really want to see in AI startups. Take advantage of Early Bird deals now to save up to $210 — register here. Is your company interested in sponsoring or exhibiting at TechCrunch Sessions: AI? Contact our sponsorship sales team by filling out this form. Sign up for the TechCrunch Events newsletter and be the first to grab special promotions. Sign in to access your portfolio
