Beyond the Idea: What It Really Means to Be Series A–Ready in the AI Era
by Ting Gootee, President & CEO, TechPoint and Samantha Ginther, Senior Director & Fund Principal, TechPoint & BioCrossroads
In this new AI-powered era, the bar for raising a Series A round has fundamentally changed, especially for founders in Indiana’s growing tech ecosystem.
As we wrote recently in The Death of Ideation Tech Startups in the AI Era, artificial intelligence has collapsed the timeline between idea and execution. Startups can now go from concept to prototype to polished pitch in a matter of days, thanks to tools like ChatGPT, GitHub Copilot, Midjourney, and Notion AI. But while the speed of creation has accelerated, investor expectations have moved even faster.
The truth is: ideas no longer differentiate you. Execution does. And execution begins with distribution.
The New Series A Litmus Test: Can You Scale It?
In the past, founders could raise early rounds by pitching a bold vision with a beautiful deck and a handful of customers. Today, investors are increasingly asking:
- How fast are you growing?
- What does it cost to acquire a new customer?
- What percent of growth is attributed to existing customers vs. new contracts?
- How can you grow faster without sacrificing capital efficiency?
- What growth levers will you pursue with this next round of funding?
In other words, Series A isn’t about proving your product works, it’s about proving your business works.
At TechPoint, we recently convened more than 150 one-on-one meetings between investors and Indiana startups. Across these conversations, it’s clear that investors are no longer impressed by pilots and prototypes alone. They’re looking for real, recurring revenue and a repeatable path to scale.
This is especially true in Indiana, where we’re seeing many founders with strong technical backgrounds and AI-enabled products, but not enough emphasis on distribution traction. We need to shift the mindset from “how innovative is the product?” to “how effectively are we getting it into paying users’ hands—and keeping them?”
AI Is Not the Differentiator. You Are.
In an age where everyone has access to the same open-source models, cloud infrastructure, and generative tools, your advantage isn’t in your code. It’s in your:
- Proprietary data
- Strategic partnerships or integrations
- Deep customer insights
- Ability to execute fast and learn faster
This shift is evident in how capital is flowing. Instead of spreading bets across dozens of idea-stage startups, investors are increasingly more selective, deploying initial checks into breakout performers who have already proven their go-to-market motion.
What Indiana Founders Need to Know
Indiana’s startups are building great technology, but pilots and trials alone won’t unlock Series A funding. Based on what we observed in our ecosystem, the next step involves moving from pilot → revenue → scalable growth.
To attract meaningful Series A capital, here’s what we advise:
- Get into the market early.
Don’t wait until your product is perfect. Early user feedback will sharpen your product and your pitch. - Prioritize traction over polish.
A simple product with paying users is more valuable than a polished prototype with none. - Build your go-to-market motion like a product.
Track and iterate on messaging, channels, conversion rates, and onboarding. Investors will ask about all of it. - Use AI to accelerate, not distract.
AI is a tool, not a moat. Make sure you’re solving real problems and tying AI to measurable outcomes. - Tell a story grounded in execution.
Showcase momentum: revenue, usage, customer retention, and a clear, efficient path to continued scale.
Final Thought: Indiana’s Moment Is Now
Indiana’s tech ecosystem is maturing. We’re seeing stronger deal flow, smarter capital, and more founders ready to lead companies through real scale. But the most successful founders aren’t waiting to be discovered—they’re proving their market, refining their distribution, and letting traction do the talking.
The key lesson from our 150 investor meetings is simple. Pilots and proofs-of-concept are no longer enough. Real revenue, retention, and repeatable growth are the true Series A test.
If you’re building in Indiana, here’s my advice: stop perfecting the idea and start scaling the execution. That’s what makes you Series A–ready—and more importantly, market-ready.
Let’s build what’s next, together. Connect with us and learn how you can benefit from TechPoint’s startup support and networks.
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