- Keep away from disappointing investor pitches not committing some of the widespread errors.
- Deal with telling a charming story that does not get slowed down in quotes or stats.
- Maintain it brief and do not shrink back from addressing your competitors.
- Visit the Business section of Insider for more stories.
Pitching traders within the hopes of touchdown funding is a traumatic however essential process when scaling your startup. You may make the method much less taxing by guaranteeing your pitch deck shouldn’t be overly difficult or too lengthy, two of the most typical errors entrepreneurs make of their decks.
Insider spoke with profitable entrepreneurs and traders to collect the 5 commonest errors founders make when presenting their pitch decks. They steered methods to keep away from or restore these essential errors, which may price you tens of millions.
First, inform traders a charming story
Some of the vital points of a pitch deck is telling a narrative, stated Andrew Parker, founding father of senior service startup Papa. Final September, his firm raised $18 million in a Sequence B, bringing its complete to $31 million.
When Parker introduced Papa to traders, he began by highlighting the issues his startup would remedy. He used related statistics — for instance, there are 50 million US seniors and social isolation prices the US $7 billion per yr — to rapidly present the trade stakes to traders.
“The perfect method could also be to make use of the titles [of your slides] as the muse to inform the story,” Parker instructed Insider. “If the potential investor solely reads the titles will they be excited to speculate?”
When Parker crafted his pitch deck, he drafted headlines of the foremost factors he needed to deal with. Particularly, he confirmed traders that elder care is an more and more vital trade that Papa can capitalize on.
Do not get misplaced within the stats, quotes, or logos
Whereas statistics and knowledge factors are important to any pitch, they can not be the one components, stated Matt Martin, the co-founder of good calendar assistant Clockwise. Martin’s startup raised $18 million in Sequence B funding final yr, bringing its complete funding to $31.6 million.
“Too usually I see founders lose the forest for the bushes of their decks: An excessive amount of element and never sufficient storytelling,” Martin stated in an electronic mail to Insider. “Inform the story clearly first, then, assist the narrative with knowledge, quotes, and logos.”
Echoing Parker, Martin suggests entrepreneurs do not get slowed down by the numbers. As a substitute, stability storytelling with different particulars that articulate your mission. “Key stats, buyer quotes, and headcount charts all have their place, however on the finish of the day, your job is to inform a compelling story about how that is going to grow to be an enormous firm,” he stated by way of electronic mail.
Consider the info, quotes, and logos are supplemental supplies that flatter the narrative you are making an attempt to inform, Martin added.
Do not lean on technical language — it betrays a insecurity
Founders who’re involved about sounding unqualified have a tendency so as to add additional particulars and technical vernacular to their pitch decks, making them illegible, Russ Heddleston, cofounder of safe doc sharing platform DocSend, previously told Insider.
Heddleston’s firm has studied hundreds of pitch decks despatched to traders by way of its platform. He usually personally evaluations these pitch decks earlier than deciding whether or not to ship them to enterprise capital contacts. If the displays are laden with jargon or complicated language, he will not ahead them.
“It is like, I do not know what you do. I am not going to take the assembly,” Heddleston stated. “I do not perceive why blockchain is concerned with the canine strolling market. That does not make any sense to me.”
Deal with your competitors
Do not shrink back from the opponents in your trade. As a substitute, present traders that you just perceive your market panorama, the foremost gamers, and your opponents, Anu Duggal, the founding associate at Feminine Founders Fund, previously told Insider.
Feminine Founders Fund invests in early-stage expertise firms run by girls and, oftentimes, Duggal sees pitch decks that keep away from the subject of competitors. Present traders you have performed your analysis; they’re anticipating your startup to have rivals.
“Once we take into consideration investing in an organization, we wish to perceive — that is nice that you’ve an fascinating concept otherwise you noticed one thing that has the potential to be an thrilling enterprise — however we additionally wish to perceive what’s already available in the market,” she stated.
Brief and easy is the perfect coverage
It might appear tempting to incorporate as a lot info as potential, however holding pitch decks easy is the perfect coverage. In any case, “traders are sometimes not specialists, they’re generalists,” Samir Smajic, founding father of gross sales platform GetAccept, instructed Insider. GetAccept raised $20 million in Sequence B funding in December, bringing its complete to financing to $30 million.
Buyers wish to know if the issue you are presenting is important, if there is a market on your product, can your crew execute on the plan, and is your answer the one that can change the world, Smajic stated.
“Attempt to construct out a pitch deck round a story the place every dot connects and the place it’s simple to comply with the crimson thread,” Smajic stated.
To maintain pitch decks digestible, do not add pointless slides, Smajic steered. Round eight slides is suggested for early-stage firms whereas 14 is healthier for later-stage startups, she added.
Moreover, should you pitched an investor who does not know your trade or market, in 20 minutes or much less, would they have the ability to clarify your product and provide you with suggestions after, Smajic stated. Think about that query when weighing what to incorporate or how granular to make the pitch.