Fundraising in AI with Aaron Harris

What It Covers

Aaron Harris shares tactical frameworks for AI fundraising, covering hype cycle dynamics, valuation strategies, investor psychology, and how to determine if raising capital makes sense for your specific situation.

Key Questions Answered

• •Fundraising scale data: Successful Series A processes require 48 first pitches on average to generate one term sheet, with 40-50 investor meetings compressed into two to three weeks creating competitive dynamics and FOMO.
• •Dilution planning: Founders should target 20% dilution at Series A and 15-20% at Series B, but must track cumulative dilution from SAFE rounds which often reaches 50% pre-Series A due to complex post-money calculations.
• •Revenue quality metrics: Investors now scrutinize six-month usage patterns after contract signing, not just contracted revenue, to identify whether AI tool adoption sustains or decays rapidly before renewal cycles, changing evaluation criteria significantly.
• •Market discovery problem: 1,700 different funds led 2,700 Series A rounds across US and Europe in 2022-2024, yet most founders can only name 100-120 funds, creating massive opportunity in systematic investor discovery and targeting.