Raising money for your company is a challenge that almost all startups must face. It can feel like a burden that takes you away from the day-to-day runnings. That is exactly why it could be the most important project you ever tackle: distilling your idea into a compelling story.
Getting your vision into a concise, direct flow isn't just beneficial to an investor. It can help to guide the marketing of your product, inform your employees of the direction, and formalize your message.
DocSend took the time to review 200 pitch decks from companies raising their seed round. The results are out, and the brutal process of getting funded just became clearer than ever before.
Some of the main findings:
- You will have an average of 3.44 minutes of attention from an investor.
- It will most likely take 12 weeks to close the round.
- You should expect to take ~40 investor meetings.
- Raising from a seed firm, like ourselves, will lower the time spent and will increase the capital raised.
What you should include:
Sequoia outlined the optimal information that you need to get across and it was pretty accurate according to DocSend's findings...
How long, how many, and who:
"We asked the research participants to rate the actual length of their fundraising round against their expectations. On a scale of one to five, where three was “as expected” and five was “waaaaay longer,” the average response for seed rounds was 3.6." [Source]