How Founders Can Earn VC Support
While there is no shortage of venture capital funding for AI-related projects this year, funding for non-AI projects appears harder to land. This might come as news to those non-AI founders who were optimistic about securing support from VCs in 2025, but that optimism was understandable.
After all, Forbes began the year by proclaiming 2025 would be the “biggest year for venture investing since the heady days of 2022.” PitchBook shared a similarly sunny outlook, saying that — thanks to interest rate cuts, attractive valuations, etc. — 2025 was “shaping up to be a good year” for venture capital in the U.S.
One VC newsletter concluded that “after weathering years of economic ups and downs, declining valuations, and a tough fundraising climate, things are looking up,” noting that advancements in AI and sustainable technologies were looking especially attractive to investors. But deploying cutting-edge technologies alone may not be enough to win over venture capitalists, at least according to one startup investor.
Susan Lindeque, founder and CEO of Avestix Group and fund manager of the Avestix Venture Capital Fund, says that while her firm certainly looks for startups spearheading advancements in AI, blockchain, quantum computing and more, those types of technological innovations are just one consideration she and her team weigh.
“Technological transformation is on the mind of every VC right now,” Susan says. “Everyone wants to invest in startups that are revolutionizing traditional systems, but technological upgrades are just a starting point when we evaluate startups.”
She says her team looks for startups leveraging technology, but those startups must have sound business models and the potential to be truly disruptive.
The days when founders could capture the attention of venture capitalists by claiming they were on the verge of introducing a new “blockchain solution” are long gone. “Startups must also demonstrate success in building cross-chain solutions that facilitate interoperability between networks and decentralized clouds,” Lindeque says, “or offer tokenization models that can transform real estate or intellectual property into accessible, liquid holdings. The leadership team must be able to show they have technical expertise in using advanced resources such as smart contracts, zero-knowledge proofs and decentralized cloud infrastructures. “
Marc Duthoit, founder and CEO of Resiliant, a cybersecurity provider pioneering the use of AI and Blockchain technologies to authenticate digital identity, agrees: that simply offering a blockchain solution is no longer sufficient to earn first-round funding. Founders must walk the walk as well as talk the talk.
“We built our prototype in 2019 before the market understood the power of combining blockchain technology and AI for digital identity and privacy protection. At the time, the market was relying on old authentication technology,” he says. “Back then, every time we mentioned blockchain, people understood cryptocurrencies, but no one saw the blockchain as a professional, secure and unforgeable database!”
Now Duthoit — who has 25 years of IT entrepreneurial experience — says investors are more sophisticated in their understanding of technology. They are also more cautious.
“Companies that provide funding have endured some significant financial losses with investments and are now applying additional criteria on new investments they evaluate,” he says. “They are making revenue requirements almost mandatory. Also, the timeframe for analysis and decision by funding companies now takes much much longer.” Lindeque agrees. When founders approach Avestix for funding, her team wants to see evidence of financial fitness.
“We look for evidence that the company is financially sound. We also want to see clearly defined business models and pathways to profitability,” she explains. “Scalability is also critical,” she adds. “We look at how prepared startups are for global adoption and whether they’re proactively addressing bottlenecks in areas like security or interoperability.”
Avestix wants to see a highly functioning leadership team, Lindeque says.
“We assess their vision, expertise and adaptability to evolving trends. A forward-thinking team can overcome challenges and build lasting solutions, but execution matters. We dive into development timelines, milestones, and proofs of concept. We want to know that they can turn ideas into market-ready products,” she says.
“Partnerships signal strength as well. Collaborating with established players — whether they work in blockchain or traditional financial models — adds credibility and opens doors for scaling,” she says.
Such signs of strength were apparent to Lindeque when Avestix became an early investor in Marc Duthoit and Resiliant. “Not only did Resiliant demonstrate forward-thinking leadership and a commitment to decentralization and transparency, but they also placed a premium on data privacy and security,” she says.
For Duthoit, the importance of trust is mutual.
“Unlike other investors we spoke to, Avestix immediately saw the power of Blockchain and hashing beyond cryptocurrencies. Susan understood how these technologies could be used to solve authentication and authorization to create a new, unique digital identity. The Avestix team got to know us on a personal level, and they demonstrated that they were committed to a long-term relationship,” he said.
If the Avestix/Resiliant experience offers any lessons to any would-be founders out who are planning to approach investors, it might be that establishing trust between investors and founders may be just as important as the ability to leverage technology.
Next Steps
Innovation drives growth, so shouldn't innovation be part of your investment strategy?
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