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In Machines we Trust

What VC's Are Looking For in AI Startups Today

In Machines we Trust

In Machines we Trust

Technology

4.36 Ratings

🗓️ 3 March 2026

⏱️ 11 minutes

🧾️ Download transcript

Summary

In this episode, we explore the evolving landscape of AI startup investments in 2026, highlighting what venture capitalists are actively seeking and what they are no longer prioritizing. We discuss the shift towards AI solutions that complete tasks and possess proprietary data moats, moving away from 'thin workflow layers' and generic AI wrappers.


Chapters
00:00 Introduction to AI Investment Shifts
00:10 What VCs Seek in AI Startups
03:39 What Investors Are Avoiding
06:51 Workflow Ownership and Execution
09:08 Successful AI Wrappers & Moats
10:14 Conclusion: Depth and Expertise


Links
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Transcript

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0:00.0

Welcome to the podcast. I'm your host, Jaden Schaefer. Today I want to talk about what investors are doing

0:05.0

in 2026 when it comes to investing in AI startups. And I think it's interesting because right now,

0:11.7

investors are basically telling you what they aren't looking for anymore in AI SaaS companies. It has

0:16.8

shifted a lot, which is interesting for me being someone who has my own SaaS company,

0:21.7

AIbox.AI, which I'm sure you've heard me talk about before because we recently did an entire

0:25.8

redesign of the platform where you get access to over 50 of the top AI models in one place

0:30.9

for $899 a month. But I think this is broadly speaking, pretty interesting and important for the

0:36.0

overall AI industry because what

0:37.8

investors are looking for here, number one means this is what people are building, but this is

0:42.9

also what we're likely to see more of when it comes to updates inside of the AI industry as a whole.

0:47.9

So this is what we're going to jump into on the podcast today. What I think is interesting is

0:52.9

investors have poured billions of dollars into AI for the last

0:56.3

few years. This isn't a trend that is slowing down. And I think all of this technology really has played a

1:01.6

huge role in Silicon Valley's, basically their priorities, and a lot of what comes out of the

1:06.3

global tech industry. I think even in a market right now that is obviously very obsessed with AI. I mean,

1:11.2

if you if you look at every basically every single company that is raising money now is no longer

1:15.9

just a SaaS. It's like an AI company. And so I think while every company has kind of added

1:20.6

AI to their sales like their pitch deck basically for VCs, I think it's becoming a lot more

1:26.5

selective on who's actually getting money, right?

1:28.9

You can't just put AI on your pitch deck and get money. So according to one of the first interviews

1:34.7

or kind of data points I got on what VCs are looking at as far as invested in AI companies today

1:39.1

that maybe they weren't in the past is from Aaron Holliday. He's a managing partner at 645 Ventures. And by the way,

...

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