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What VCs and investors are not looking for in SaaS?
Today, I read a TechCrunch article about what investors are no longer looking for in SaaS, or rather, what to avoid if you don't want to lose their interest.
The red flags were:
Too easy to replicate light AI wrappers, generic horizontal tools, basic CRM clones, generic productivity or project management tools.
No real depth products where differentiation is mostly UI and automation, anything without proprietary data, surface-level analytics.
Becoming obsolete workflow automation tools that coordinate human work (agents are taking over), integrations as a moat (MCP is making connectors a commodity), and "workflow stickiness" products trying to keep humans inside their software.
mcp-fusion - Route 5,000+ AI tools into one. Stop LLM context bloat.
Standard MCP breaks at scale. Exposing 50+ tools to Claude or Cursor destroys the context window, skyrockets API token costs, and causes routing hallucinations. mcp-fusion is an open-source TS gateway that multiplexes thousands of endpoints into ONE mathematically perfect tool. Stop burning tokens. Ship one tool.
