The great tragedy of the pitch deck is that dozens of rock-solid startups get overlooked due to a mediocre deck. Because of the sheer number of pitches that most investors receive, pitch decks and brief financials end up being the default way for funds to comb through the noise and decide who gets a callback.
After a firehose of exposure to pitch decks this past year, what makes a ‘good’ pitch deck is not what I thought when I started this job. So, in order to help level the playing field, here are the top 8 vital things a pitch deck needs, that are often left out.
Acknowledging your competition is an excellent opportunity to explain why you are different…
…and therefore better. Comparing your business to your competition allows investors to see that you are not only aware that competition exists, but you have put thought into creating an offering that differentiates your business from what is already out there. You can also use similar companies to help explain your own, adding clarity by giving investors comparative examples of similar concepts.
Another great benefit of acknowledging your competition is to talk about the market and size. For example, if there’s already a product on the market that does what yours will do, you can use that business’s TAM (total addressable market) to help you explain the size of your projected market.
Aesthetics Matter
This may seem rather obvious however it is worth mentioning due to how frequently it gets overlooked. Aesthetics not only make the pitch deck more digestible, but good design also communicates a level of legitimacy and attention to detail. When investors can only choose 1 out of 10 startups to actually follow up with, the one with the pretty pitch deck often turns out to be the one that gets the call.
Fonts, colors, images, spacing, ext are all critical when it comes to design. It’s essential you use good-quality photos or graphics, that fonts are consistent and easy to read, and that the layout helps guide the viewer. The main idea here is to make your deck ultra-consumable. The better you are at using design to communicate your ideas, the better your chance of getting legitimate interest.
You should also ensure your deck has consistent branding throughout so that investors know this presentation came from a company with a strong identity. This is left out more than you might expect. If you are unsure of your brand's identity, use your pitch deck as an opportunity to develop some personality. Choose a font, pick a few colors, make a logo if you haven't already. All of these give the impression that your business is not just a product, it is a valuable and unique brand that has value on its own.
Clarity is Vital
It is imperative to remember that the investor looking at your pitch deck may have no prior knowledge of your business or industry. This potential gap in knowledge means you have to take great care in explaining what your company does. This catch 22 is one of the most difficult parts of building a killer deck. On one hand, you want to make things as brief and clear as possible. On the other hand, you want to provide enough detail to educate even the most uninitiated. When done well, this is what turns a good pitch deck into a great one.
I speak with founders on a regular basis that struggle with explaining the basics of their business. This does not disqualify them from funding, but it does make it more difficult for an investor to communicate the offer with the rest of their team. It also displays that the brand is not doing a good job of communicating its offering to potential customers, which can be an obvious red flag.
Clarity will also ensure that if an investor only has a moment to scan your pitch deck (which happens often), they will still be able to get a basic understanding of you’re offering.
Highlight your team members
Investors want to work with people they trust, so building a relationship is vital for securing funding and future partnerships. It’s essential that you have a team committed to making your business successful, but it’s also crucial to highlight the experience each member brings to the table. Celebrating your team will help give investors a window into the unique value your team brings. The main idea here is to communicate that you have assembled a team of people who are ready, willing, and well equipped to give your business legs.
Don’t ignore your challenges
Every business faces challenges, don’t gloss over yours. Often startups say their only gap is ‘funding’. This is never the case. When a startup avoids addressing its obstacles, it shows they are either unaware of what challenges they face or uninterested in solving problems. Both of these are reasons enough to disqualify a startup from funding. Also, investors often have access to a network of resources to help solve these problems. Addressing them can yield real progress in getting help and advice to take of them. It also communicates authenticity and self-awareness.
If you present your business as flawless, investors will see right through the veneer of perfection. Ideally, a pitch deck shows it is both aware of its obstacles and has a plan to overcome them.
Data drives interest
There are creative ways to prove that with the right amount of fuel, your business can be successful. Current sales, growth rate, customer acquisition cost, scalability, time to profitability, and a dozen other buzzwords should dominate the financial half of your deck.
Investors are always keen to see metrics that prove the viability of your business. This can be achieved by combining the data history you have on your own company, and often to great effect, the data gathered from similar successful businesses.
Industry numbers are also vital in proving that your sales projections are accurate. Identifying how big your market is and what percentage of that market you can reasonably capture will help show investors that you have a clear mathematical path to success and will show you have the foresight to create quantifiable goals. Projected sales are great, but only if you can reasonably explain why you believe them to be attainable.
Know your audience
Not every investor should get the same pitch deck. Pitch decks should be tailored to suit the needs and interests of each specific investor. For example, if you’re going for early-stage investment from a local angel group that invests in companies that can help grow through mentorship or networking opportunities, focus on those points. Highlight why you are seeking mentorship, what makes your business exciting, and communicate you are open to critical feedback.
If you are pitching to more traditional venture capitalists, highlight how you will grow and scale your business. Focus less on the story of how you got to where you are, and more on the numbers that will ensure a successful investment. Your decks can be similar, but it always helps to adjust to your audience.
Polish your pitch
Before sending pitch decks out, I always recommend practicing with friends or colleagues to get feedback on the clarity of the presentation and content.
It’s important not to underestimate pitch decks: after all, this is what can make or break an investment opportunity. If done correctly, it should be a clear and concise presentation of your business that highlights all the important elements in an easily digestible way.
Pitch decks are… frustrating. They can take huge amounts of time and resources to get right and can often seem like a waste of time. However, I have found that taking the time to build a stellar pitch deck can also help a startup identify its weaknesses, can contribute to the beginning stages of branding, and even make the business’s goals feel more attainable. Your deck, for a while anyway, is gonna be the face of your business. It will act as the first impression and last word in funding conversations. Most importantly, it should act as a direct culmination of all of the work you have put in thus far. When a pitch deck is done right, it gives the startup a huge leg up.
Looking for feedback on your deck? Submit it here and I’ll roast it for you.
