CRED CEO Kunal Shah Urges Founders to Address Larger Problems to Attract Venture Capital
CRED co-founder and CEO Kunal Shah recently discussed the difficulties startup founders face in securing venture capital, emphasizing the importance of accurately assessing market size.
Shah highlighted that many founders overlook the significance of understanding the market potential for their products. He recommended that first-time founders use AI tools capable of analyzing comprehensive market data to evaluate whether their product or service addresses a sufficiently large total addressable market (TAM).
Shah stated on X, “Founders often struggle to raise venture capital because the problem they’re solving addresses a very small TAM. An AI tool for sizing their TAM could be beneficial for first-time founders.”
Social Media Reaction:
Online responses to Shah’s comments have been varied.
One user wrote, “An AI tool can indeed act as a mentor or consultant, providing structured frameworks for founders. Solutions like Autogen or CrewAI might be useful.”
Another user commented, “Relying on AI for market size might lead to more generic insights and increase the number of similar startups. The real issue might be founders’ ability to think strategically about their market and competition.”
A third user replied, “Perhaps the problem is not just TAM but also the founders’ ability to articulate their market’s potential. AI tools might be more beneficial for VCs than for founders themselves.”