DocSend Newsletter - The Startup Index: September 1, 2023

This week, we’re excited to share our fourth annual pre-seed report, and highlight expert tips on how early-stage founders can find success in this new fundraising climate.

Plus, the six essential due diligence documents you need – whether or not you’re actively fundraising. We also share how companies around the world are finding ways to access creativity and discipline in remote work environments.

The pre-seed round in 2022-23: VCs shift from rapid growth to long-term risk aversion

Our fourth annual pre-seed report shows that risk aversion is driving VC funding decisions, meaning that founders need to sharpen their storytelling and demonstrate traction to instill confidence in VCs and stand out. Download the report to get the full scoop into how today’s fundraising climate has changed, and how to adjust your fundraising strategy and pitch deck for maximum success.

Download now

Pitch deck interest metrics

Last week was relatively light for founders and investors, and both sides of the dealmaking table are now right in line with 2022’s pace. VC activity rose by 1.88% and the average time on deck remained stable at two and a half minutes. Despite all the volatility we’ve seen in the macro landscape this summer, investor activity is only down about 1% compared to last year. Founders were slightly less busy: their activity levels fell by 4.72% and now sit just 2% higher than this time last year.

Given this parity, we expect both founders and investors to hew closely to seasonal trends through the rest of the summer and early fall. Although the fall rush will likely happen as always around late-September, it may nonetheless be slightly muted when compared to years past.

The due diligence documents you need to seal the deal

Securing and organizing your due diligence documents are key elements to a successful raise. Even if you’re not actively fundraising, you’ll need organized due diligence documents if you get hit with a surprise audit or legal action you didn’t anticipate. Learn exactly what you need for a complete package of due diligence documents, all the way from the financial to the legal.

Check out our guide to the 6 essential due diligence documents.

Recommended reads:

Finding discipline and creativity while working remotely. For Hrishikesh Hirway, musician, podcast host, and producer, producing his best work means marrying a creative idea with a disciplined practice. He shares his creative process and how to tap into deep focus by limiting distractions.
Can an AI robot learn what makes you laugh? The short answer is yes. We asked Dr. Julia Taylor Rayz, a Professor of Computer and Information Technology, about the potential to teach humor to computers.
The DocSend Fundraising Network is back. Receive professional pitch deck feedback, amplify VC outreach, get your deal flow vetted, and connect with quality founders and committed VCs. Join now.