All successful companies start out as a great idea, writing on the back of a cocktail napkin during a deep night meeting of the mind or moving away from a hungry inspiration that leave you with this feeling of “I could have done better”. In most cases, it goes as far as entrepreneurship, because unfortunately, a great idea cannot raise money, develop products, or disrupt an industry.
New data from the DocSend Startup Index shows that in the early stages of fundraising, especially in the case of pre-seed rounds, VCs need to go to VCs with much more than just a great idea to secure the organization’s funds.
Our new report on the state of pre-seed fundraising shows that investors have become laser-focused on parts of the pitch deck that focus on monetization and business efficiency – signs that founders need to come to the table with more well-defined businesses to succeed.
According to the data, the overall founding and vice-chancellor activity paralyzed in early 2020 after the serious nature of the epidemic became apparent.
However, as the year progresses and investors adjust to new market conditions and remote dealmaking, overall activity quickly surpasses pre-epidemic levels. Despite this concern for activity and an unprecedented appetite for fresh start pitches, investors made it very clear that the strong position in the three sections of the pitch deck was infallible.
When we released our 2019 pre-seed report, the competitive landscape of the pitch deck firmly in the middle of the pack in terms of time spent reviewing investors: they averaged about 35 seconds clearly express their own uniqueness and product-market fit. . In 2020, the Vice Chancellor’s time spent in the same department increased by an average of 53 seconds across both successful and unsuccessful decks (whether or not to offer funding.)
Despite this concern for activity and an unprecedented appetite for fresh start pitches, investors made it very clear that the strong position in the three sections of the pitch deck was infallible.