⏮️March's Highlights Across Startups, VC, Data & AI
Content, Research, Reports, Podcasts, Events, Jobs & More
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Brought to you by Affinity - Due Diligence 2.0: Strategies for the AI Era
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Welcome to our monthly wrap-up episode where we cover March’s most relevant content at the intersection of startups, VC, data & AI.
We read it all so you don’t need to - here we go👇
INTERESTING RESEARCH & REPORTS📈
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.
Decoding Value-Add in Venture Capital
Dealroom’s latest report on investor value add delves into the tangible metrics that define value-add among VC investors, focusing on their role in nurturing startups from seed to success. The right investor choice can have an astounding effect, with outcomes following a long-tailed distribution—where a select few investors dramatically outperform the rest in driving startup success.
Seed to Series A Conversion Rates: Top 5% of investors achieve a 63% conversion rate from seed to Series A, with some exceeding 75%. Startups backed by these investors are 4.5 times more likely to progress compared to those supported by bottom-quartile investors.
Quality of Follow-On Capital: Leading investors facilitate follow-on funding from top-tier Series A+ investors, enhancing startups’ growth trajectories.
Quantity of Follow-On Capital: The report also measures the total follow-on capital raised per company, reflecting investors’ ability to secure substantial funding in subsequent rounds.
✈️ KEY TAKEAWAYS
The report underscores significant disparities among VC investors in guiding startups from seed to Series A, highlighting the impact of investor quality on startup success. Much like with the startups they invest in, it is the few top percent of investors who generate most of the value.