Jennifer Neundorfer, co-founder of January Ventures, recently joined TechCrunch’s Equity podcast to discuss the current venture landscape, particularly in the booming artificial intelligence (AI) sector. With investors and founders alike fixated on AI, even Neundorfer acknowledges her firm is exploring how AI can streamline their own operations — tasks like market analysis and competitive research.
However, when it comes to backing startups, Neundorfer emphasizes a preference for truly groundbreaking ideas.
“My excitement lies with founders using AI not just to marginally improve existing processes—it’s about creating entirely new experiences, workflows, or behaviors,” she explains. Instead of incremental advancements, Neundorfer seeks ventures that push the boundaries and redefine what’s possible. This is becoming increasingly difficult as an “AI fatigue” sets in; countless pitches start sounding eerily similar.
Neundorfer believes successful founders must differentiate themselves by clearly articulating why their approach is unique amidst the crowded field of AI startups. They need to convince investors why they are the ideal team to execute this vision.
Looking ahead, Neundorfer anticipates a market correction in the near future, regardless of whether we’re currently in an “AI bubble.” Many companies flush with funding may struggle to survive this shakeout. The winners will be those who build truly innovative products that define entire categories and anticipate the next wave of technological advancement.
“Founders who stay ahead of the curve,” she says, “building at the edge of what’s possible today while anticipating tomorrow, who deeply understand their customer needs rather than simply chasing technological possibilities—those founders will have a significant advantage.”
Neundorfer draws from her own experiences before entering venture capital. She previously worked at YouTube and 21st Century Fox, where she found the most rewarding aspect was connecting with individuals developing groundbreaking technology. This sparked her passion for working with early-stage founders. While transitioning to investing initially involved providing detailed guidance to portfolio companies, she’s now adopted a more nuanced approach.
“It’s about cultivating a relationship with the founder, supporting not only their business decisions but also their personal growth,” she emphasizes. Today, Neundorfer is an established figure in the VC world, mentoring programs like Techstars and leading over 50 investments at January Ventures. Throughout her podcast appearance, she addressed broader industry trends, including funding disparities faced by minority and female founders, as well as the emergence of successful venture ecosystems outside traditional hubs like San Francisco.
Ultimately, Neundorfer’s message for aspiring founders—especially those from underrepresented backgrounds—is straightforward: “Ignore the noise and focus on building a great company. Anything else becomes uncontrollable, and the worry isn’t worth it.”
