Jennifer Neundorfer, co-founder of January Ventures, joined the Equity podcast at TechCrunch Disrupt to discuss the challenges of raising capital in today’s AI-focused environment.
Both entrepreneurs and investors are fixated on artificial intelligence, and Neundorfer mentioned that her firm is exploring how AI can streamline their processes, such as conducting market and competitor analysis. When it comes to startups, she gravitates toward founders who are aiming to invent something truly original.
“What excites me most is when someone leverages AI not just to make something marginally better, but to introduce an entirely new workflow, experience, or behavior,” she explained. “That’s our focus—less on small improvements, more on fundamentally new approaches.”
She noted that it’s becoming increasingly difficult for founders, as the market is experiencing fatigue with so many similar AI concepts emerging.
“Founders who stand out are those who can clearly articulate to investors how their approach is truly distinct from the many other startups in the space, and why their team is best positioned to pursue it,” she added.
Regardless of whether we’re in an AI bubble, Neundorfer believes a market adjustment is likely on the horizon, and many startups currently benefiting from investor enthusiasm may not endure. Those who succeed will be the ones building companies that define new categories and anticipate where technology is heading. “The founders who stay ahead, innovate at the frontier of what’s possible, and anticipate future needs will have the upper hand,” she said. “It’s about understanding the market and customer needs, not just building what’s feasible. Those founders will stand out.”
Elsewhere in the episode, she reflected on her previous roles at YouTube and 21st Century Fox.
“A big part of my job was meeting people with impressive technology,” she recalled about her time at 21st Century Fox. Engaging with innovators was the most rewarding aspect and made her realize her passion for supporting early-stage founders.
However, she faced a steep learning curve when she moved into investing. Early on, she frequently checked in with founders and offered in-depth feedback on their businesses.
“That approach works in some situations, but ultimately, it’s about building a relationship with the founder—supporting them as individuals, not just as business leaders,” she said.
Now, she feels at home in her role. She mentors for organizations like Techstars and, according to PitchBook, has made over 50 investments at January Ventures, with several successful exits along the way.
Throughout the interview, Neundorfer discussed the evolving venture landscape, funding for women and minority founders, and the rise of successful startup hubs outside San Francisco. Her top advice for diverse founders—and really, for anyone building in today’s climate—is to tune out distractions and concentrate on building a strong business.
“Everything else is out of their hands, and worrying about it just isn’t productive.”
