DocSend Newsletter - The Startup Index: October 13, 2023

In a nutshell, the fundraising competition remains intense and shows no signs of abating. Founder activity has seen a 9% year-over-year rise, while VC activity has experienced a slight dip of nearly 2% over the same time period. Some macroeconomic factors, notably high-interest rates, may be responsible for the lukewarm enthusiasm among investors. Explore our insights into the potential implications for the market down the road.

Investor activity ticked upwards last week while many founders who had been eagerly sending out decks took a break to start Q4. VC activity rose by 2.51% and the average time on deck was unchanged from the previous week at 2 minutes, 24 seconds. In year-over-year terms, investors are sticking close to 2022's pace and are actually ahead of 2021's pace. Looks can be deceiving, though: in the hotter 2021 market, investor activity increased throughout the fall season, whereas last year it trailed off at the start of Q4. We expect 2023's pace to split the difference between the two climates (erring a bit more toward 2022), but the next few weeks will be a barometer.

By contrast, founder activity declined sharply last week, dropping by 20%. This isn't cause for concern: founder activity historically drops at the start of Q4 as many founders who have been raising turn their attention back to growing their business. The outsized drop we’re seeing reflects the very high activity baseline we’ve seen all year, and we predict founder activity to begin moving back upwards through October. Will VC demand rise to meet the incoming founder supply of decks? Next week will provide an important early look at what the rest of the year might look like.

After successfully raising funds, the pressure is on to allocate the money wisely and to keep investors informed of progress. To help navigate this post-fundraising period, we put together top three tips from experienced founders.

• DocSend empowers you to take a proactive approach when closing deals, whether securing investments, forging collaborations, or obtaining authorizations. Don't believe us? Hear from two entrepreneurs who turned the beverage industry on its head.

• Have you ever wished you could delegate virtual meetings to an avatar to save time for more important tasks? Thanks to AI advancements, that reality might be pretty close. Follow along as Dr. Robby Ratan delves into the world of machine learning, where innovative solutions are reshaping our work processes for the better.
• DocSend's startup research provides founders valuable insights and market trends for a successful fundraise. Join us in supporting the next generation of founders by sharing your fundraising journey by taking our Startup Fundraising research survey here.