$300M Valuations for AI Startups? It's Just Getting Started | Derek Norton

VC Unfiltered

In this episode of VC Unfiltered, host Lucas J Pols, GP at Pegasus Angel Accelerator, sits down with Derek Norton, Managing Partner at Watertower Ventures, to unpack how the venture capital landscape is fundamentally shifting — again.
Derek shares how his team thinks about investing at the earliest stages, what founders need to survive (and thrive) in today's capital environment, and why AI valuations at Series A may soon routinely hit $200M+.
They dive into capital efficiency, founder resilience post-2021, and why real venture capital is back. Whether you're a founder, investor, or emerging VC, this episode is a masterclass in navigating the next wave of startup investing.
0:38 Overview of WaterTower Ventures and Investment Philosophy
1:53 Market Shifts and Founder Resilience Post-2022
3:07 AI Trends and Portfolio Company Progress
4:14 The “Third Wave” – AI and Blockchain Synergy
6:07 Trust as a Core Theme for the New Fund
6:25 Sector Focus and Investment Strategy
9:12 Domain Expertise and Value-Add through Networks
11:57 Managing a Portfolio and Time Allocation
13:17 Lessons Learned from Building Businesses
15:53 Advice for Emerging Managers and New VCs
17:13 The Real Challenge: Scaling Beyond Series A
20:26 Capital Stack Dynamics and Early-Stage Fundraising
21:00 Mission-Driven vs. Market-Driven Founders
22:22 Hot Take: Series A Valuations Heading to $200M+
24:54 Closing Thoughts and Farewell
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