Pitch Deck Interest metrics post gains in
investor engagement after six quarters of consistent
decline
SAN
FRANCISCO, Jan. 17, 2024 /PRNewswire/
-- DocSend, a secure document sharing platform and Dropbox
(NASDAQ: DBX) company, released a new data analysis of startup
fundraising showing positive momentum for the first time in six
quarters, based on investor engagement with pitch decks. The Pitch
Deck Interest (PDI) metrics prompt hope for increased dealmaking in
Q1, due to encouraging year-over-year (YoY) investor interest and
founder activity.
2023: Investors take action in Q4 despite market
uncertainty
Investor activity increased 1.7% quarter-over-quarter (QoQ),
signaling encouraging progress into 2024. Investors reviewed more
pitch decks as uncertainty and economic concern subsided and
eagerness to invest in disruptive industries, like Artificial
Intelligence (AI), grew. Conversely, founders were less active in
sending out their pitch decks to investors in Q4, with activity
dropping almost 6% QoQ.
The YoY analysis shows a different, busier picture of Q4 for
both investors and founders, as activity levels rose above 2022 for
the first time. Pitch deck interactions and founder links created
increased 6.7% and 4.2%, respectively. Investor time spent
reviewing decks continuously decreased over 2023, hitting an
all-time low in Q4 of two minutes and 24 seconds. As investors'
attention spans become scarce, founders are forced to streamline
and condense their pitch decks to compete for seconds of
mindshare.
"As we enter 2024, we are seeing glimmers of hope for founders
seeking funding," said Justin Izzo,
lead data and trends analyst at Dropbox DocSend. "The small
increase in QoQ investor activity signals that investors may be
more engaged during the post-holiday January rush, finally at ease
after a series of jarring interest rate hikes and increased
inflation. The shock of these macro trends is wearing off and there
is hope that a more consistent and predictable early-stage
fundraising market lies ahead."
Year-to-date (YTD) data shows VC activity lagged in Q1 and Q2 of
2023, although the discrepancy includes efforts from 2021's strong
finish that carried over into early 2022. This is reflected in YTD
metrics with investor pitch deck interactions dropping by 4.8% and
investor time spent dropping by 3.8%, all while founder links
created jumped 2%.
New year, new venture capital landscape
Deal activity was down in 2023 as 38% of VCs disappeared from
dealmaking in the first three quarters, according to Pitchbook. But
Q4's 6.7% jump in investor engagement, per DocSend data, shows
investors are increasingly interested in new opportunities to
allocate capital, signaling a potential increase in dealmaking in
early 2024.
"Investors hesitated to make deals in 2023 due to a series of
macroeconomic factors, but our data provides a glimpse into future
investment flows by looking at current deal interest," said Izzo.
"After the last 15-18 months of considerable stress on the market,
venture capital seems to be approaching a period of increased
confidence. Q4 has shown investor re-engagement, and VCs are
potentially ready to make up for the deals they opted out of
earlier in the year."
Key Leading Indicators of Fundraising Activity
There are three core metrics unique to DocSend for tracking
investors' hunger for deals and founders' quest for capital.
- Founder links created - the average number of pitch
deck links each founder is creating via DocSend. This serves as a
proxy for the supply of startups seeking funding. A "link" refers
to the unique URL a founder creates using DocSend to share their
pitch deck with investors. When the average number of links
increases, it means that founders are sending their decks out to
more investors.
- Investor deck interactions - the average number of
investor interactions for each pitch deck link. This serves as a
proxy for demand for investments. The higher the interaction
metric, the more often decks are viewed, shared, and revisited by
potential investors.
- Investor time spent - the average time spent per
pitch deck by potential investors. This metric offers a look at how
long VCs are spending reviewing deals. More time spent per deck
could mean investors are more closely scrutinizing deals.
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 30,000
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