The artificial intelligence (AI) sector has witnessed unprecedented growth, with investments surging 62% to $110 billion in 2024 alone. However, startup funding overall declined 12% during the same period. This disparity has led investors to reevaluate their priorities, seeking AI startups that can demonstrate sustained traction and long-term profitability.

In the midst of this funding frenzy, simply adding "AI" to a company's name is no longer a guaranteed ticket to securing investments. Instead, venture capitalists (VCs) are looking for startups that can turn technical ingenuity into tangible results. This shift in focus is a response to the growing recognition that AI's true potential lies in its real-world applications, rather than mere hype.

At the upcoming TechCrunch Sessions: AI event, taking place on June 5 in Zellerbach Hall at UC Berkeley, top VCs will share their insights on what they look for in AI startups at each stage of investment. Zeya Yang (IVP), Jill Chase (CapitalG), and Kanu Gulati (Khosla Ventures) will break down their investment strategies, drawing from their extensive experience in the field.

Zeya Yang, for instance, has invested in successful companies like Grammarly and Figma, and has a track record of working closely with founders to refine product-market fit and drive growth. Jill Chase, on the other hand, has focused on emerging use cases for AI and ML, data infrastructure, and enterprise technology, with investments in Magic, /dev/agents, Motif, and Abridge. Kanu Gulati brings over 10 years of experience as a research scientist and founding engineer, having backed AI leaders PolyAI, Kognitos, and Moonhub.

The TechCrunch Sessions: AI event offers a unique opportunity for startups to gain valuable insights into what VCs are looking for in AI investments. By attending the event, startups can learn how to demonstrate sustained traction and long-term profitability, increasing their chances of securing funding in a competitive market.

With Early Bird deals available, startups can save up to $210 by registering now for the event. Additionally, companies interested in sponsoring or exhibiting at TechCrunch Sessions: AI can contact the sponsorship sales team to explore opportunities.

As the AI sector continues to evolve, it's clear that investors are seeking more than just technical innovation. They're looking for startups that can turn AI into tangible, real-world applications with long-term potential. The TechCrunch Sessions: AI event promises to be a valuable resource for startups seeking to navigate this shifting landscape and secure the funding they need to succeed.