The questions Leonis Capital investors ask to see if a startup's tech actually holds up (www.businessinsider.com)

Leonis Capital, a venture capital firm focused on next-generation AI startups, has outlined critical questions they ask founders to evaluate their technology and investment potential. Amid the competitive landscape of AI development, where giants like Google and OpenAI dominate, distinguishing promising startups from those likely to fail is essential for investors. Co-founders Jenny Xiao and Jay Zhao emphasize the importance of understanding the depth and scalability of a startup's technology—not just incremental improvements, but transformative capabilities and defensibility against larger competitors. The firm’s approach involves assessing how well founders grasp their product's uniqueness, proprietary data generation, and the technical decisions that impact scalability. They ask pointed questions regarding potential competitive responses, the value of their insights, and adaptability to market shifts, fostering a rigorous dialogue that reveals the founders' understanding of both their technology and the broader market dynamics. These evaluations help ensure that the startups Leonis invests in can not only survive but also thrive in a rapidly evolving AI ecosystem, aiming for sustainable, innovative breakthroughs rather than mere feature enhancements.