Venture Capitalists (probably the rest of the investors too) are now spending far too less time reviewing pitch decks!
The recent research by Docsend in 2022, based on 300+ startups suggests:
VCs spent 24% less time reviewing the pitch decks in 2022 (2m:42s), as compared to 2021 (3m:32s).
So, now you barely have <3 mins to make a first and lasting impression.
As I keep saying to the founders i.e. it's not the template but your unique story that would entice the investors.
Worse of all for the decks that failed to raise funding, investors just gave it up in/under 2m:13s.
This isn't surprising, considering that the number of pitch decks sent out (by the founders) has substantially gone up in 2022, and thus the time spent on decks by the Investors is staying very low,” explains Justin Izzo, research lead for DocSend.
He further adds, “What’s surprising is that while we know that both the product and business model slides of decks are really where investors liked to lean in, especially for companies at the early stages. But investors have now almost halved their time spent on these slides at the Pre-seed level."
"The third-longest-viewed section now is the Company Purpose slide (after the product and business model sections), often containing just a line or two of text. Shockingly, in 2022, investors tend to be using this slide to see if the investment might potentially be a good fit with their investment thesis. That becomes a very quick filter to "pass a startup” without needing to go deep on product, team, or market size.
Founders have to really think deeply about their business, and their unique story, then communicate briefly in a compelling way, concludes Justin.
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Focus Slides for Successful Decks!
The DocSend team analyzed 300+ decks to look at which slides were present in the successful and unsuccessful decks. Expectedly the Team slide was covered in both, and from there, things started to vary a bit.
Questionably, the key slides i.e. "Why Now," and Financials weren't covered in the unsuccessful pitch decks. TOC refers to Table of Contents or Summary.
The Funding timeline has also been extended for 2022!
Even the timeline for funding has further extended in 2022:
Barely, 25% of startups raised in less than 6 weeks.
58% raised in less than 12 weeks.
70% raised in less than 18 weeks, and
90% raised in less than 24 weeks.
We Help Startups, and SMEs Successfully Raise Funding! Here's How.