This time of year is traditionally the “slow season” for investors and founders in the fundraising marketplace. Based on last week’s data, we’re seeing that investor interest (interactions with pitch decks) has stayed higher than the previous two years of activity in Q3. The time spent reading each deck continues to trend downward from normal levels of above 3.25 minutes we saw in Q1 and is 21% down from this same week in 2019. The amount of links created has dropped to roughly the same number as of July 20th and remains high for the season. These metrics are “not normal” for this time of year, but, as we know, most things aren’t normal this year. We expect the fundraising market activity to remain high as we continue through August, so now is the time to be fundraising.
We’re seeing that investor interest in pitch decks (read: demand) dropped in the past week to just above the level we recorded on July 20th. This is still much higher than the historical market activity. With investors viewing and engaging with more decks on average this summer, their time spent reading those decks has stayed slightly below 3 minutes per deck. On the supply side of the fundraising marketplace, the number of links founders created last week to share their pitch decks hit an all-time high for 2020. This means that founders are very actively seeking funding and investors are keeping up. Here are Russ Heddleston’s thoughts on what Q2 fundraising data tells us about the rest of 2020.
Since last week, we’ve seen investor interest climbing back up towards the record high we reported two weeks ago. This level of interest is 44% higher than the same week in 2019 and 31% higher than this week in 2018. As investors are showing higher interest this week, their average time spent reading decks continues to trend downward. Founders are keeping investors busy with a 30% jump in links created per deck this week vs. the same week in 2019. With the significant increase in links created, the decline in time spent reading, and an increase in investor interest, this summer continues to be more active than the traditional summer slump. For analysis on Q2’s Pitch Deck Interest Metrics, read our review.
While we’re seeing a small correction in the amount of VC interest, we’re still seeing more interest than this week in both 2019 and 2018. This correction can also be seen in the rebound in time spent per deck. We’re still below three minutes, which means VCs are still reviewing deals at pace, but this rebound might mean a settling of the fundraising marketplace for the summer. But based on the amount of activity from founders we don’t expect VC interest to drop much, as we’re also still experiencing higher than normal founder activity. As summer is traditionally slow, this could be what slow looks like for the next few months.
We’re looking at another record breaking week for pitch deck interest from VCs. But all that shopping is definitely coming at a cost. The time spent per deck has dropped far below three minutes. If you’re looking to fundraise right now we recommend you keep the information in your deck concise. Remember, the goal of you deck is just to get you the meeting. You can always give your potential investor more information when you meet. The amount of links founder are creating has been fairly steady over the last few weeks, which is very much in line with the end of Q2 every year. However, traditionally we also see a drop off in founder activity in July. That also hasn’t happened this year. With both founders and VCs unseasonably active we should continue to see above average activity all summer.
Traditionally this week in fundraising marks the steep decent in interest during the summer months. With VCs officially coming back online in September. However, as we’ve seen this year is anything but traditional. We think it’s safe to say that this is no longer just displaced interest from the steep drop earlier this year. The shift in the world economy plus all of the issues the pandemic has wrought has clearly opened up new interest from VCs. Some of the biggest companies in the world today were borne out of the last financial crisis. It’s clear that new companies are being created to address the current problems society is facing, and VCs are ready and willing to invest.
While VC interest dropped from its record high last week, it’s still 10.5% above this week in 2018 and 33.3% above this week in 2019. We could finally be seeing the summer slowdown, but it looks like founders are becoming more active, so we’ll likely see sustained VC interest unless we reach a point where the fundraising market has stabilized. Another metric that leads us to believe that things are settling down is the amount of time spent per deck. It’s slowly creeping back up. The average is typically 3.5 minutes, but we’ve seen VCs rushing to get through decks recently as they actively look for deals.
The recent founder activity has lead to a record high week for VC interest. The unseasonably high numbers look like we’re not only going to buck the summer trend, it also seems like the brief break we saw in March for fundraising means VCs are now actively looking to deploy money. The amount of links created by founders has dropped once again, leading us to believe that there may be more demand than there is supply right now. That’s great for valuations as founders are likely to be in a good place to negotiate terms (our DocSend Startup Index: COVID-19 Impact Report showed that 64% of founders were not changing their target valuations). Time spent is still hovering around the three minute mark, which means a tight pitch deck is still your best bet.
Last week’s extra supply of pitch decks has once again created an increase VC interest. In fact, VC interest is the second highest it’s been in the last two years. It’s just 2% down from the all time high from the beginning of 2018. Last week also marks the first time we’ve see the average amount of time spent per pitch deck go below 3 minutes. While founders have taken advantage of the increased interest from VCs the last few weeks, it seems last week they took a break. However, the amount of links being created is still 20% higher than in March when the implications of the pandemic began to hit. The amount of links created is also 15% higher than it was this time last year, and nearly 28% higher than this time in 2018. Read More...
Updated: June 8, 2020
- Pitch Deck Interest: +4.3%
- Pitch Deck Interest: Time Spent: -2.2%
- Pitch Deck Interest: Links Created: +19.2%
VC interest is bucking the seasonal trend and continuing to rise. In fact, it’s just 3% under the 2020 high which we achieved the week of April 20th. What’s even more interesting is the jump we see in the number of links being created by founders. It’s actually the highest it’s been in the last two years. If the fundraising market is working, and we don’t have too much supply, we should see demand (VC interest) rise to meet the increased supply over the coming weeks. We’re also continuing to see the amount of time spent on pitch decks decreasing. This means you need to have a very tight pitch that can be understood in just three minutes.
Updated: June 1, 2020
- Pitch Deck Interest: -5.6%
- Pitch Deck Interest: Time Spent: -0.6%
- Pitch Deck Interest: Links Created: +6.7%
While VC interest seems to have declined a bit, we’re still seeing a lot of activity from founders. It looks like the decline in the fundraising marketplace earlier this year is going to drive an unseasonably active summer. The amount of time VCs are spending per deck is still declining, meaning that they’re actively looking at each deal, they’re just not spending too much time pouring over the details. Remember, the goal of your pitch deck is to get you the meeting. Don’t put every detail about your business in the deck, put just enough to get you in the (Zoom) room.
Updated: May 26, 2020
- Pitch Deck Interest: +2.6%
- Pitch Deck Interest: Time Spent: -0.6%
- Pitch Deck Interest: Links Created: -14.3%
While Memorial Day weekend seemed to affect founders (links sent was down over 14%0, it seems VCs spent their downtime reading decks. Overall pitch deck interest was up another 2.6%, which puts it up 30% YoY. It also means that interest is continuing to buck the seasonal downward trend we would expect to see as we move into summer. The amount of time spent reading each pitch deck also went down slightly as VCs read through more decks. With founders taking a break last week we might see a drop in VC interest as they will have less decks in their pipeline to read, but expect it to remain high.
Updated: May 18, 2020
- Pitch Deck Interest: -1.5%
- Pitch Deck Interest: Time Spent: -1.9%
- Pitch Deck Interest: Links Created: +8.2%
Investor interest dropped slightly this week, but it’s still higher than in any week in 2019. We may be seeing an indicator that the fundraising market is going to begin to adhere to its seasonal pattern, however, the number of links created by founders rose once again this week. If interest rises to meet it, we’re going to see another spike next week. Last week was the second highest week for founder activity in 2020. The main trend that founders need to be aware of is the amount of time spent per pitch deck. Earlier this year we found that VCs spent around 3:23 on successful pitch deck, meaning you had less than three and a half minutes to get everything across in your send ahead deck. That’s not a lot of time to describe your entire business. We’re now seeing that VCs are spending just over three minutes on a deck. While the loss of 20 seconds doesn’t seem significant, that’s nearly 10% of the overall time spent on a deck. Founders need to make sure their decks contain the right information without anything superfluous.
Updated: May 11, 2020
- Pitch Deck Interest: +8.4%
- Pitch Deck Interest: Time Spent: -4%
- Pitch Deck Interest: Links Created: +5.5%
Investor interest is continuing on at a high rate, despite this time of year traditionally seeing a drop. In fact, interest is 11% higher than this week in 2018 and 23% higher than this week in 2019. The number of links created by founders has also jumped again, meaning founders are also bucking the seasonal trend. This is the fourth week in a row that we’ve seen the amount of time spent per deck drop. While it’s still within normal range, it likely means VCs are reading more decks, and spending less time on each than they typically would.
Updated: May 4, 2020
- Pitch Deck Interest: -10%
- Pitch Deck Interest: Time Spent: -5%
- Pitch Deck Interest: Links Created: +1%
While interest came down again last week, it’s still historically high. Overall interest is up 10% YoY and it looks likely to maintain that bump is founders remain active. And while they didn’t bounce back much this week, and increase of 1% will likely lead to a small resurgence of VC interest next week. What’s interesting is that the amount of time VCs are spending on decks is down 5%. As shelter-in-place orders are lifted and people begin to get out of their houses, we could see a change in this number.
Updated: Apr 27, 2020
- Pitch Deck Interest: +14%
- Pitch Deck Interest: Time Spent: -1%
- Pitch Deck Interest: Links Created: -11%
Last week brought us another spike in VC interest. In fact, investor interest was the second highest it’s been since the beginning of 2018. But that interest has peaked in a week where we watched the number of links being created by founders drop another 11 percent. Links created is a leading indicator of founder interest, so with the spike last week in links it makes sense that VCs are consuming more decks this week.
Updated: Apr 20, 2020
- Pitch Deck Interest: Flat
- Pitch Deck Interest: Time Spent: -3%
- Pitch Deck Interest: Links Created: +17%
It looks like founders are getting back into action and sending out their pitch decks. While pitch deck interest has remained flat, the time spent per deck has dropped slightly. With an increase in decks being sent this makes sense. This has traditionally been the week each year where we start to see a drop in interest, so flat interest from VCs here is actually great news. Interest is 4% more than it was this week in 2018 and a whopping 18% more than in 2019. Founder links created is still slightly behind its peak from earlier this year. If you’re a founder looking to get funding, you may want to consider sending out your pitch deck now.
Updated: Apr 13, 2020
- Pitch Deck Interest: +3.5%
- Pitch Deck Interest: Time Spent: +3%
- Pitch Deck Interest: Links Created: -7.6%
We’ve had another week showing increasing investor interest. This was paired with founders sending out less decks and investors spending slightly more time per deck. These conditions are very good for founders looking to send out a pitch deck. Investors are showing interest, and they’re spending more time per deck. We recommend adding a slide to your deck that shows how you expect COVID-19 to impact your business and market opportunity over the coming 12-18 months.
Apr 6, 2020
Investor interest is increasing, but the amount of decks being sent has not yet risen to match. If you need to fundraise now might be the right time to take advantage of a less crowded market.
Based on our three metrics, we can see that after a decline over the last few weeks, investors are back to reviewing decks at nearly the pace they were before the COVID-19 pandemic struck. In fact, last week was only 5.4% down from the week of February 17th. That interest can most likely be correlated with the amount of decks being sent. The average number of links sent out per company was at an all-time low two weeks ago, but is now creeping back up to the pre-COVID-19 range. It looks like founders are slowly starting to fundraise again, or they’re working on much more targeted fundraising efforts.
With investor interest in pitch decks rising, but the amount of links not rising to match, it means now could be a great time to send out your deck. The market could be less crowded when vying for a VC’s attention.
It also tracks that investors are spending slightly less time reviewing deals than normal. The added complication of working from home, plus spending more time with their current portfolio, means many VCs will have less hours in the day to review decks for new business deals. As things become more settled over the next few weeks, these numbers may start to stabilize. But for now, decks are being sent, VCs are reviewing more decks, and they’re doing it quickly.
Mar 30, 2020
This week saw a 10% increase in pitch deck interest from the week before and we’re just 5% down YoY.
While many investors have reported spending more time with their portfolio companies, it looks like the lack of events and meetings has given them plenty of time to still peruse pitch decks. VCs are approaching investing in multiple different ways. Many still have large funds that need to be deployed, while others are taking time to look at deals, but not necessarily pulling the trigger right away. If you’re a founder who’s looking for funding in the next few quarters, now might be the perfect time to get your pitch deck in front of potential investors.
Mar 23, 2020
Despite the current crisis, pitch deck interest only dropped 11% YoY over the course of the week.
With the announcement that all non-essential businesses in California will remain closed for the foreseeable future, it’s not a surprise that pitch deck interest dipped over the course of last week. Many VCs are looking at new ways to meet with founders, with many already taking meetings via Zoom. We also must note that many of the usual ways that VCs receive deck (warm intros from portfolio companies, meetings at events) are no longer happening due to the current restrictions. That means VCs are not only spending time on internal alignment in how best to move forward, they are also facing a limited pipeline. But both Axios and TechCrunch are reporting that many VCs are still actively seeking deals. Their funds have already been raised and they still very much plan to deploy them.