Insights from 30,000 Pitch Decks: Trends in Startup Funding

The UK-based venture capital firm Fuel Ventures has released a decade-long retrospective on the 30,000 pitch decks it has received since its launch in 2014. This report provides valuable insights into the trends and patterns in startup funding over the past ten years.

Increase in Female Founders

The report notes a 45 percent increase in female founders pitching over the last ten years, with a notable 30 percent rise in the past five. However, despite this increase, the number of investments in female founders continues to decline across Europe. This highlights the need for more support and investment in female-led startups.

Buzzwords in Pitch Decks

Perhaps unsurprisingly, “AI” was the most mentioned term in pitch decks over the past year, appearing in 86 percent of submissions. Other popular buzzwords included “disruption” (61 percent), “scale” (52 percent), “sustainability” (45 percent), and “pivot” (32 percent). However, the VC flagged a growing trend of “AI washing,” with a 20 percent rise in companies mentioning AI in their decks without any actual AI capability.

Debunking Myths Around Age and Innovation

The data debunks myths around age and innovation, with a 35 percent increase in founders over 40. This points to a growing trend of experienced professionals launching startups later in their careers. This challenges the common perception that entrepreneurship is only for the young.

Importance of Founding Teams

One of the standout insights from the report is that 76 percent of successful pitches came from startups with co-founders. This reinforces the long-held industry view that founding teams are often more attractive to investors than solo entrepreneurs due to their ability to share skills and responsibilities.

Regional Shift in Startup Activity

While London remains the UK’s startup epicentre, the report notes significant growth in other cities. Birmingham and Manchester saw increases in founder activity of 120 and 95 respectively, suggesting a decentralisation trend supported by the rise of remote work and regional investment initiatives. This regional shift aligns with a wider policy push from the UK government to "level up" economic opportunities outside the capital.

Tips for Founders

For founders preparing their next pitch, the report provides some valuable insights. Pitch decks sent on Tuesdays were more likely to receive a follow-up compared to those submitted on Fridays, perhaps due to fresher minds and inboxes. The key takeaways are simple: work with a team, be authentic about AI, and, if you want that follow-up – send it on a Tuesday.

Conclusion

The report from Fuel Ventures provides a unique glimpse into the world of startup funding and the trends that are shaping the industry. By analyzing 30,000 pitch decks, the report highlights the importance of founding teams, the growing trend of experienced professionals launching startups, and the need for more support and investment in female-led startups. As the startup landscape continues to evolve, these insights will be invaluable for founders, investors, and policymakers alike.