The 'New Normal' of Fundraising in 2025—Hoffman, Brown-Philpot, and Aileen Lee on How to Prove Scale in Nine Months
On October 8, 2025, at a roundtable during the Masters of Scale Summit in San Francisco, moderated by Van Jones, Reid Hoffman, Stacy Brown-Philpot, and Aileen Lee spoke candidly about 'what is happening in fundraising right now.' Their insights serve as practical guidelines for both founders and investors to update their approach to speed, capital efficiency, negotiation posture, and talent in the age of AI. This article summarizes the key points, incorporating their quotes.
1. What has changed—The 'bar' has been raised, and the timeline has shrunk
As Van notes, we have entered an era where even at the pre-seed stage, founders are asked about 'monetization,' 'pilot-to-paid conversion,' and 'moats' (barriers to entry). Reid states clearly, 'If you're not hearing a yes, it's a no.' And Stacy presses further—'Can you do what you did in 18 months in 9 months? Can you do it?' Aileen points out that while generative AI has allowed some consumer services to
chart 'unprecedented hockey sticks,' enterprise companies are often compared against 'brick-laying' growth, putting them at a disadvantage.
1-1. Expectations for Seed/Series A
Seed: Not funding to build a product, but the stage to show it after it's built. 'Build it yourself, get people to use it, and show ingenuity and hustle.' (Aileen)
Series A: Demanding potential for scale and an accelerated growth pace upfront (e.g., '6,000 customers is not enough. At what speed is the path from 60k to 600k?' / Stacy)
2. What investors are looking at now—'Proof of scale' and 'Value that beats in-house development'
Stacy emphasizes that given the purchasing behavior of large corporations, 'You need a proposal that targets 15% of the core budget, not 1% of idle budget for AI experimentation.' The competition is not just other companies, but the customer's own in-house team. 'Show the value-added that beats building it in-house.'
2-1. Quantitative indicators of scale
Beyond PMF: Demonstrate the range from 10 to 10,000 to 1,000,000 users using decomposed, scalable KPIs.
Pilot-to-paid conversion rate, NRR (expansion exceeding churn), and sales efficiency (Magic Number, etc.) should be visualized early.
2-2. The reality of sales strategy
Companies have a strong preference for in-house development. You must prove that you are superior to in-house solutions in terms of TCO, implementation speed, maintenance burden, and security.
3. Negotiation and capital efficiency—Don't become an 'Icarus' company
Aileen warns against large funding rounds and high valuations: 'An inflated valuation will strangle you in the next round or during an M&A.' Reid also notes that 'valuable companies prioritize the probability of success over 10% vs 12% dilution,' pointing out that board seats and term negotiations are also zero-sum 'attitude tests.'
Stacy states, 'How you approach negotiations reflects how you will work together afterward,' adding that at Cherry Rock, they ask for a board seat when leading a Series A, but that it is a place for conversation and mutual learning.
3-1. Basic sense of valuation
While public SaaS revenue multiples are around 6–12x, private valuations of 50x are occasionally seen. Lacking a sustainable linear path leads directly to down-rounds or acquisition difficulties.
4. AI and the redesign of work—The realism of a 'Bloomer'
Reid positions himself as a 'Bloomer,' defining AI as an 'industrial revolution of cognition.' He says, 'The AI you use today is the weakest AI you will use for the rest of your life.' That is why you must 'use it every day. Make deep research a habit.'
On the other hand, some one-to-one roles will disappear (e.g., script-driven customer support). Professional skills will shift toward 'the ability to master AI'—'There are no AI-proof jobs. AI-ready talent will survive.'
5. Diversity and New Opportunities—Disruption Lowers Barriers
Van expresses hope for the potential of communities that have previously been underserved to gain an advantage. Reid responds—'During periods of collapse, the rigidity of old power structures decreases. Do not bind yourself with imagination and risk-taking.'
Aileen emphasizes that founders from diverse backgrounds tackling overlooked issues and tasks are the very source of competitive advantage. There is significant room to generate thick profit pools 'outside the range of model companies.'