- Keep away from disappointing investor pitches not committing one of the frequent errors.
- Concentrate on 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 buyers within the hopes of touchdown funding is a annoying however essential job 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 commonest errors entrepreneurs make of their decks.
Insider spoke with profitable entrepreneurs and buyers to assemble the 5 commonest errors founders make when presenting their pitch decks. They advised methods to keep away from or restore these important errors, which may price you tens of millions.
First, inform buyers a charming story
One of the essential points 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 complete to $31 million.
When Parker offered Papa to buyers, 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 yr — to rapidly present the business stakes to buyers.
“One of the best method 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 take a position?”
When Parker crafted his pitch deck, he drafted headlines of the main factors he needed to handle. Particularly, he confirmed buyers that elder care is an more and more essential 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 cannot be the one components, mentioned Matt Martin, the co-founder of sensible calendar assistant Clockwise. Martin’s startup raised $18 million in Sequence B funding final yr, bringing its complete 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 attempting 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 buyers via its platform. He typically personally evaluations 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 shrink back from the rivals in your business. As a substitute, present buyers that you just perceive your market panorama, the main gamers, and your rivals, Anu Duggal, the founding associate at Feminine Founders Fund, previously told Insider.
Feminine Founders Fund invests in early-stage know-how firms run by ladies and, oftentimes, Duggal sees pitch decks that keep away from the subject of competitors. Present buyers you have accomplished your analysis; they’re anticipating your startup to have rivals.
“After we take into consideration investing in an organization, we wish to perceive — that is nice that you’ve an fascinating thought 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 very best coverage
It might appear tempting to incorporate as a lot info as attainable, however retaining pitch decks easy is the very best coverage. In spite of everything, “buyers 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.
Traders wish to know if the issue you are presenting is critical, if there is a market on 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 purple thread,” Smajic mentioned.
To maintain pitch decks digestible, do not add pointless slides, Smajic advised. Round eight slides is suggested for early-stage firms whereas 14 is healthier for later-stage startups, he added.
Moreover, should 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 provide you with suggestions after, Smajic mentioned. Contemplate that query when weighing what to incorporate or how granular to make the pitch.