Why AI is making it harder than ever for young companies to raise money

Artificial intelligence is reshaping the early-stage venture capital landscape, making it more difficult for young companies to secure funding as investors demand greater efficiency and scalability from the start. BBG Ventures managing partner Nisha Dua, a 2026 Seed 40 honoree, said AI tools are raising the bar for startups seeking seed capital by enabling faster due diligence and higher performance expectations. The shift is forcing founders to prove their business models can leverage AI to compete in an increasingly crowded market.

Why AI is making it harder for young companies to raise money Business Insider's Seed 40 https://www.businessinsider.com/seed-40-best-women-early-stage-vc-investors-2026-5 list highlights women who have a knack for turning young companies into successful businesses. The list of the best women early-stage investors is a companion to BI's annual Seed 100 https://www.businessinsider.com/seed-100-best-early-stage-vc-investors-2026-5 . Nisha Dua, managing partner and co-founder of BBG Ventures, is one of this year's honorees. An early backer of Spring Health, Starface, SuperCircle, and HopskipDrive among others, she stopped by Business Insider's newsroom to speak with senior correspondent Melia Russell. Dua explains how AI has changed the seed investing landscape, her approach to investing, and how she uses AI in her daily life. Business Insider's Seed 40 https://www.businessinsider.com/seed-40-best-women-early-stage-vc-investors-2026-5 list highlights women who have a knack for turning young companies into successful businesses. The list of the best women early-stage investors is a companion to BI's annual Seed 100 https://www.businessinsider.com/seed-100-best-early-stage-vc-investors-2026-5 . Nisha Dua, managing partner and co-founder of BBG Ventures, is one of this year's honorees. An early backer of Spring Health, Starface, SuperCircle, and HopskipDrive among others, she stopped by Business Insider's newsroom to speak with senior correspondent Melia Russell. Dua explains how AI has changed the seed investing landscape, her approach to investing, and how she uses AI in her daily life.