So far, 2021 has been a record year for deals and funds raised: the average seed funding amount in H1 2021 was $2.5M in comparison to 2020's total average of $1.7M, a 47% increase, according to Crunchbase. As larger deal size and volume create even more opportunity for startups at this stage, it also means investors are busier reviewing pitches, adding to the pressure to deliver a strong, concise pitch deck.

With an increased volume of funding activity across the board, VCs have become continuously more efficient when evaluating pitch decks, spending just 3 minutes, 18 seconds on average per seed deck. Investors paid more attention to decks they ultimately went on to fund, (3 minutes, 20 seconds), which is 24% more than the time spent on unsuccessful decks.

"The market is red hot right now, and while VCs are competing with each other to court earlier-stage startups, seed stage startups still have to work hard to pitch their business and raise money," explained Russ Heddleston, DocSend Co-Founder and Head of Commercial, DocSend at Dropbox. "Startups are reaching out to more investors than ever before and are under pressure to demonstrate clear progress of their business. And despite businesses returning to some in-person meetings, the virtual process of fundraising is here to stay, keeping the pitch deck front and center."

From Business Idea to a Business That Endures
The seed pitch deck sections that held the most weight in the minds of discerning investors were the business model and market traction slides. VCs spent 94% more time on the business model sections of successful decks than on unsuccessful decks. Investors also spent 78% more time on the traction sections of unsuccessful decks than on successful decks.

"When you are in fundraising mode, you are constantly hustling to prove yourself and your business," said Nyasha-Harmony Gutsa, CEO of Billy and member of the DocSend Fundraising Network. "There are many hurdles in fundraising, and knowing what makes a successful pitch deck, from financials to product readiness, can help make the process smoother and more successful."

Show Them The Money, Get the Money Faster
The research shows that the financial section is not always included in seed stage decks, but if there are viable financials to share, investors will look. In 2020/21, investors spent 236% longer on this section in successful decks (those decks that received funding) than unsuccessful decks (those that did not receive funding). And when successful in fundraising, 73% of companies went from term sheet to money in the bank in under 6 weeks (up from 15% in 2019). Showing early proof of fiscal discipline and realistic plans for the use of future capital can make a difference in the speed and success of today's seed-stage fundraising.