💥Legal Cost for a Funding Round, How VCs Read a Pitch Deck, Europe vs US Unicorn Efficiency & More
Digesting Insights From the Data
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How VCs Actually Read a Pitch Deck
Adam Shuaib’s recent analysis of over 12,000 pitch decks reveals that VCs spend an average of just 9 seconds per slide, with only 10% re-reading the deck. If you’re raising capital, structuring your slides strategically can improve your chances of getting a response.
Team First: The team slide should be upfront, especially at the seed/pre-seed stage, where investor confidence hinges on founder quality. Avoid mixing advisors with full-time team members, as excessive advisor references negatively impact fundraising (except in biotech).
Market Size Matters: Market size was the most common reason for rejection. A clear and credible market sizing calculation strengthens your case and prevents easy pushback.
Clarity Wins Deals: A strong competitive landscape slide answers the inevitable “who else is doing this?” question, while a transparent traction slide should distinguish between paying and non-paying customers. Also, always include your raise amount—decks that omit this detail are nearly half as likely to get a response.
✈️ KEY TAKEAWAYS
VCs skim decks quickly, so prioritizing clarity, team strength, and essential details like market size and fundraising goals can improve your odds of securing investment.
Europe Matches the US in Unicorn Efficiency
A new analysis by Dealroom shows that European startups create unicorns at the same rate as US startups when measured by venture capital investment. Despite receiving less attention, European companies are just as effective at turning funding into billion-dollar valuations.
Unicorn Rate by Investment: Data reveals that for every dollar raised, European and US startups reach unicorn status at nearly identical rates, debunking the notion that the US has a structural advantage in scaling companies.
Scaling Efficiency: The trajectory of unicorn creation follows the same path in both regions, suggesting that once startups secure funding, their ability to scale is comparable.
Caveat: The data presumable shows private (pre-IPO) valuations. If, how, and where these companies IPO, and where that value is captured is a completely different discussion.
✈️ KEY TAKEAWAYS
Europe’s startup ecosystem is just as effective as the US in creating unicorns, proving that funding efficiency (not geography) drives billion-dollar success.