While many locations of the economy are set to reopen in the coming weeks– if they’re not already– most startups never ever really closed. Stashed in houses and houses across the nation, creators have been not just focused on running their companies, but also on securing capital to boost growth once the economy has actually normalized.
For the a lot of part, the fundraising marketplace has actually stayed open (for a deep dive into VC behavior over the last 2 months go here). The last 2 weeks might be establishing a new typical for fundraising this year that ought to make creators positive. Even though most VCs aren’t taking in-person meetings, and there are still a great deal of questions about what our economy will look like in the coming months, VCs are more active this month than they remained in May of both 2019 and 2018.
We’re utilizing the 2020 DocSend Start-up Index to track 3 significant metrics to reveal us real-time trends in the fundraising market. Utilizing aggregate and anonymous information pulled from thousands of pitch deck interactions across the DocSend platform, we have the ability to track the supply and demand in the marketplace, along with the quality of pitch deck interactions.
VC interest is at a two-year high
We’re tracking pitch deck interactions across our platform on a weekly basis to compare how VCs are running today versus a backdrop of the last 2 years. Among the primary metrics we look at is pitch deck demand, as measured by the typical variety of pitch deck interactions for each creator happening on our platform right now.
While VC interest took a dive in March (more on that here), the last two weeks have actually shown unseasonably high interest. Usually, May signifies the beginning of the summer season downturn, which bottoms out around August. Nevertheless, in the last two weeks, we have actually seen VC interest typically 21% greater than in the previous two years.
While VC interest is high, it’s possible we’re just seeing a displacement of the normal demand we see in the spring, and that the summer dip is still coming. Nevertheless, the other metrics we’re tracking lead us to believe that we’re going to sustain this development for a minimum of the rest of May and possibly well into June.