1%, that is the percentage of startups who secure funding from venture capitalists. Daily investors are approached by numerous startups with their
pitch decks, most of which they just skim through. The question is what does it take to create an attention grabbing pitch deck?
In this blog, we discuss 10 mistakes entrepreneurs should avoid while creating a successful startup pitch deck.
10 Mistakes a Startup Pitch Deck should Avoid
Start with a classic 10/20/30 rule for effective pitch by Guy Kawasaki. Per this rule, your pitch should have 10 slides of the pitch deck, 20 minutes long, and the font of the pitch deck should be no less than 30 points. This is a barebone structure on which you can build a successful pitch deck. So, what do you avoid in these 10 slides? Let’s discuss that in detail!
1. No Storytelling = No Investment
Stories get people invested. Yes, your pitch deck is about showcasing the solution you are providing for a problem, yet, when facts are backed by a
compelling story, that is sure to get some attention. Create a narrative that flows through the slides till the end. Don’t mistake an inventor’s love for numbers for creating a boring pitch deck that just talks about. A startup pitch deck should maintain a balance between numbers, storytelling and facts.
2. Overuse of Fancy Industry Jargon
You have to use certain technical terms in your pitch deck, to show your grasp of the market and your expertise. But use it only when necessary, overuse it and it will give the investors the impression that you are trying too hard and don’t
know when to scale back.
The language and structure of your pitch deck must be clear and straightforward. Avoid complicating the pitch by adding confusing charts, using
tricky languages, and excessively using industry jargon.
3. No traces of Traction & Validation
Like said in the first point, building a perfect pitch deck is about finding the right balance between numbers and narration. What some entrepreneurs do is keep talking about how great their idea is. The thing is the idea’s greatness should be backed by numbers. When creating the pitch deck, you should focus on the investors’ POV and highlight any traction and validation your startup has secured. It helps build trust between the investors and the startups and increases your chances of securing the funds.
Be loud about the startup’s achievements, even if you think it’s small. Small wins count when you are an early-stage startup or even if you are in the growth stage. Did you create the first MVP? Write it in the pitch deck. Did your startups gain validation from the target audience? Write it in the pitch deck. Did you win a local pitching competition? You guessed it, WRITE IT IN THE PITCH DECK!
4. Vague Business Model & Financial Projections
Clarity is your best friend when building a pitch deck. Any startup pitch deck with unclear or misleading business models and projection will get rejected immediately! Your information should be concise and have facts and stats to back it up. Take a few weeks or months to develop a reliable and scalable business model with well-researched financial projects for future revenue and profits.
5. Adding Irrelevant Information
While you need to tell a story through the pitch deck, avoid adding irrelevant information in it. You have no more than 4 minutes to impress investors. So, every word counts! Focus on facts and relevant statistics and explain them in the pitch deck for startups. Stick to the most important parts about your startups that intrigue the investors and help them decide.
6. Skipping Market Trends and Relevant Profits
Your startup is solving a problem, great! But is the solution scalable, will it have good ROI? While many investors do focus on the positive change you are bringing, they want profitability of your startup idea.
So, show market trends that highlight why ‘now’ is the perfect time to invest in your startup. Shine a spotlight on the profitability and growth potential of your startup.
7. Lack of Competitive Analysis
The time you take to say that you have no competitors equals how fast the investors will reject your pitch deck. It shows your lack of market research and awareness. So, take your time to research and highlight the top competitors in your pitch deck. Add how you stand out from the competitors and how you can win over the customers in your segment.
8. Ignoring your Team
Your startup is as good as the team who runs it. However, just mentioning their role and responsibility is not enough. Investors want to know if you and your team have the plan and capability to attain your startup goals. So, highlight their qualifications and skills and how they’ll help you achieve your goals.
9. Unclear Funding Ask
Startups often beat around the bush on funding requirements and how they plan to use those funds. Investors may perceive it as a lack of planning and reject the pitch deck. So, be transparent about how much funding you need, the equity you offer, how you plan on utilizing the funds, and the ROI you expect to provide.
10. Importance of Closing Slide
An abrupt ending leaves a negative impact on your startup. So, summarize your startup, the problem & solution statements, and the traction and market trends that make you a reliable startup to invest in. Add your contact information and CTA for a follow-up call to discuss this further.
Understanding how to make a pitch deck is crucial to creating a winning pitch deck for your startup. We are here to help you with some pitch deck examples. You can check out some winning pitches from one of our events dedicated to helping investors and entrepreneurs connect. Some examples are Revamp Moto, CIBOS Techno Solutions, and Keto India. You can explore more pitches and insightful panel discussions from Global Startup Summits here on YouTube.
Conclusion
Whether you pitch for early-stage funding from angel investors or growth-stage funding from VCs, understanding what investors look for in a pitch deck can help you secure the funding. This blog lists the top 10 mistakes to avoid in startup pitch decks. If you use complex language and charts in your pitch, you are bound to get rejected. Instead, opt for a simplified narrative style for the pitch, highlighting your traction, skilled team, scalable business model, financial projects, and competitive analysis. Explore 21BY72’s website and YouTube channel for more insightful content on the Global Startup Summit and the Indian startup ecosystem.
FAQs
1. What is a pitch deck for startups, and why is it important?
A pitch deck for startups is a formal and brief presentation about your startup. The pitch deck acts as a medium for investors to understand your startup and decide if you have potential. It enables you to create a strong first impression and increases the chances of you securing the funding. It also helps the investors understand how well-prepared you and your team are to achieve the startup goals.
2. What investors look for in a pitch deck before investing?
Investors go through hundreds of pitch decks in a day. Investors look for the problems and solutions the startups work on and their market trends to
determine potential returns. Furthermore, the investors look for the startup’s traction, validation, competitive analysis, team strength, and business model to determine if they are worth the investment and pitching opportunity.
3. What is the format for startup pitch decks?
Ideally a startup pitch deck should be 10 slides. However, you can take up to 15 slides and keep the fonts at 30 points. The pitch should follow a narrative flow. Start with an entrepreneur and startup introduction, the problem you identified, and the solution you offer. Follow this up with the market potential, your product, your business model, and the traction for your startup. Next, explain the competition, your market strategy to overcome the competition, and financial projections. Highlight your team’s strength to achieve the desired goals, followed by your funding needs and closing slide summarizing the pitch deck.
4. How long should the startup pitch deck and pitch be?
Ideally, the pitch deck should be between 10-15 slides to provide the necessary information to the investors. The pitch should be no more than 20 minutes, followed by a Q&A round with the investors to provide the required information without overwhelming the investors. Keep the information simple, uncomplicated, and to the point. It helps the investors understand your startup, build trust, and make the final decision.
