VCs prioritize people in an AI-heavy landscape, according to new Dropbox DocSend report

Rhea-AI Summary

Dropbox's DocSend has released new data revealing significant shifts in VC investment priorities during 2024. Investors spent 40% more time on seed stage Team slides and 30% more time on pre-seed Team slides compared to 2023. Despite record-high pitch deck engagement, global early-stage fundraising remained flat year-over-year.

Key findings show that mixed-gender teams received the highest funding, averaging $770K for seed and $660K for pre-seed rounds. Teams with founders in their 20s and two-founder structures were most successful. The West region showed recovery following the SVB collapse.

Investors demonstrated less interest in market context, with 19% less attention on pre-seed Market Size slides and 48% less attention on seed Competition slides. Fundraising efficiency improved, with rounds typically closing within 12 weeks for both pre-seed and seed stages.

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

FAQ

How much more time did VCs spend reviewing Team slides in 2024 according to DBX's DocSend report?

VCs 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.

What was the average funding received by mixed-gender teams in 2024?

Mixed-gender teams received average funding of $770K for seed rounds and $660K for pre-seed rounds.

How long did successful fundraising rounds take in 2024 according to DBX DocSend?

Fundraising rounds averaged 12 weeks for pre-seed rounds, and the majority of successful seed companies closed rounds in 12 weeks or less.

What changes occurred in investor attention to Market Size and Competition slides in 2024?

Investors spent 19% less time on pre-seed Market Size slides and 48% less time on seed Competition slides compared to the previous year.

Which demographic received the most funding according to the 2024 DBX DocSend report?

Teams with members in their 20s and teams with two founders received the most funding.