Market context takes back seat to success
metrics while "window shopping" VCs look for proven skill set and
traction
SAN
FRANCISCO, Dec. 18, 2024 /PRNewswire/ -- DocSend, a
secure document sharing platform and Dropbox (NASDAQ: DBX) company,
released new data showing venture capital (VC) investors spent 40%
more time on seed stage Team slides, and 30% more time on pre-seed
Team slides in 2024 compared to the previous year. As interest in
dealmaking has returned, investors are prioritizing proven progress
such as traction, product and financials over market context and
competition.
DocSend's annual funding reports, The pre-seed round
2024: VCs reward people-forward approach to disruptive startups
and The seed round 2024: The proof is in the pitch deck as
investors "window shop", reveal a significant shift in investor
priorities. The reports analyze more than 400 pre-seed and seed
fundraising startups to better understand what goes into an
early-stage raise in today's market.
Investors "window shop" for potential investments as their
engagement with pitch decks reached record highs, but their
interest isn't translating into dollars. Global early-stage
fundraising trended flat YoY.
People Behind the Pitch Deck
Data from both of DocSend's early-stage reports reveals a common
theme: investors are increasingly focused on the team behind a
startup. Backgrounds and expertise are pivotal in building investor
confidence in a disruptive time.
VCs are investing in new technology and looking for teams that
will drive innovation. The most money raised went to teams with
members in their 20s, and teams with two founders. Geographically,
the West had a redemptive increase in startups, indicating a bounce
back from the SVB collapse.
Mixed-gender teams received the most funding, an average of
$770K for seed and $660K for pre-seed, demonstrating investors
showed progress in recognizing the value diverse viewpoints bring
to the table.
Investors have a growing interest in how startups can
demonstrate expertise, success metrics, and a growth plan, rather
than just demonstrating market fit. The pre-seed Market Size slide
received 19% less investor attention and the seed Competition slide
received 48% less investor attention, on average.
Pitching Process: Sped-Up Investor Decisions
Founders are also closing rounds quicker – fundraising time
averaged 12 weeks for pre-seed rounds and the majority of
successful seed companies closed rounds in 12 weeks or less. With
investors cutting down the time they spend analyzing each deck,
founders need to capture and keep VCs' attention by being concise
and impactful in their presentations.
Both sides of the funding process are focused on efficiency.
However, pre-seed founders averaged fewer meetings set with
investors and seed founders averaged more.
The full 2024 Dropbox DocSend Pre-seed and Seed reports can be
found here.
About DocSend
DocSend enables companies to share
business-critical documents with ease and get real-time actionable
feedback. With DocSend's security and control, startup founders,
investors, executives, and business development professionals can
build business partnerships that have a lasting impact. Over 34,000
customers of all sizes use DocSend today. Learn more at
docsend.com.
About Dropbox
Dropbox is one place to keep life
organized and keep work moving. With more than 700 million
registered users across 180 countries, we're on a mission to design
a more enlightened way of working. Dropbox is headquartered in
San Francisco, CA. For more
information on our mission and products, visit dropbox.com.
Media Contact:
Carol Boyko
104 West for DocSend
carol.boyko@104west.com
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SOURCE DocSend