- 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.
- Preserve it quick and do not draw 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 vital job when scaling your startup. You can also make the method much less taxing by guaranteeing your pitch deck is just not overly difficult or too lengthy, two of the most typical errors entrepreneurs make of their decks.
Insider spoke with profitable entrepreneurs and traders to assemble the 5 most typical errors founders make when presenting their pitch decks. They steered methods to keep away from or restore these vital errors, which might price you thousands and thousands.
First, inform traders a charming story
Probably the most vital features of a pitch deck is telling a narrative, mentioned Andrew Parker, founding father of senior service startup Papa. Final September, his firm raised $18 million in a Sequence B, bringing its whole to $31 million.
When Parker offered Papa to traders, he began by highlighting the issues his startup would clear up. He used related statistics — for instance, there are 50 million US seniors and social isolation prices the US $7 billion per 12 months — to shortly present the business stakes to traders.
“One of the best strategy could also be to make use of the titles [of your slides] as the inspiration 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 main factors he needed to handle. Particularly, he confirmed traders that elder care is an more and more vital business that Papa can capitalize on.
Do not get misplaced within the stats, quotes, or logos
Whereas statistics and knowledge factors are very important to any pitch, they can not be the one elements, mentioned Matt Martin, the co-founder of good calendar assistant Clockwise. Martin’s startup raised $18 million in Sequence B funding final 12 months, bringing its whole funding to $31.6 million.
“Too typically I see founders lose the forest for the timber of their decks: An excessive amount of element and never sufficient storytelling,” Martin mentioned in an e 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 change into an enormous firm,” he mentioned through e mail.
Consider the info, quotes, and logos are supplemental supplies that go with 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 further 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 1000’s of pitch decks despatched to traders by its platform. He typically personally opinions these pitch decks earlier than deciding whether or not to ship them to enterprise capital contacts. If the shows 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 mentioned. “I do not perceive why blockchain is concerned with the canine strolling market. That does not make any sense to me.”
Handle your competitors
Do not draw back from the opponents in your business. As a substitute, present traders that you just perceive your market panorama, the main gamers, and your opponents, Anu Duggal, the founding associate at Feminine Founders Fund, previously told Insider.
Feminine Founders Fund invests in early-stage know-how corporations 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 attention-grabbing concept otherwise you noticed one thing that has the potential to be an thrilling enterprise — however we additionally wish to perceive what’s already out there,” she mentioned.
Brief and easy is the perfect coverage
It could appear tempting to incorporate as a lot info as doable, however protecting pitch decks easy is the perfect coverage. In spite of everything, “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 whole to financing to $30 million.
Buyers wish to know if the issue you are presenting is critical, if there is a market to your product, can your crew execute on the plan, and is your resolution the one that can change the world, Smajic mentioned.
“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 pink thread,” Smajic mentioned.
To maintain pitch decks digestible, do not add pointless slides, Smajic steered. Round eight slides is suggested for early-stage corporations whereas 14 is healthier for later-stage startups, he added.
Moreover, when you pitched an investor who does not know your business or market, in 20 minutes or much less, would they have the ability to clarify your product and offer you suggestions after, Smajic mentioned. Think about that query when weighing what to incorporate or how granular to make the pitch.