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Raising money is crucial to the success of a startup. It is essential to drive growth, build infrastructure, attract talent, mitigate risk, access networks, scale marketing and sales activities, and achieve milestones.
The pitch deck is one of the most vital documents a founder can create in their profession. By now, certain rules have been established about what should and shouldn’t be included in pitch decks, shaped by a long time of the history of the enterprise market.
Here are some recommendations on what to avoid to make your presentation a success:
1. Missing relevant information
Certain information should be included in every pitch deck because all investors need to know it:
- the problem and solution your startup intends to deal with
- the development timeline for this product and the total size of the addressable market
- Your business model, unit economics and traction
- competitive landscape and peer evaluation
- Your team and their experience
- How can investors aid you with all this? What is the amount you raise and the use of funds?
Skip any of these sections and your possibilities of hearing from investors shall be significantly reduced.
It’s at all times a good idea to have a demo of your product to indicate how it really works in motion somewhat than describing it. Product demos, videos and prototypes provide your audience with precious, hands-on experience. This approach allows investors to see the potential of your solution and creates a lasting impression that can’t be achieved with words alone.
Another addition to strengthening your offer presentation is providing the first product metrics. Traction and evidence of market confirmation can instill confidence in potential investors. If you would like them to be much more positive about your solution, outline the company’s progress and achievements up to now or in the future with a strict motion plan.
2. (*9*) to grasp, overloaded slides
Prioritize clarity – avoid over-filling your slides and keep them clean. Each slide should contain a single, clear message so that your audience grasps the ideas quickly and remembers them long after the presentation. Also avoid jargon, overly technical terms and convoluted explanations.
3. Outdated numbers and data
Investors expect there to be a lot of numbers in the deck, including market size, market research, data from other partners, and your personal metrics showing traction. All these numbers should be fresh and updated commonly. No investor would take you seriously after receiving a presentation with 2022 market data in April 2024.
4. Dirty materials
A book is judged by its cover. Apply the same principle to the pitch deck. Investors see tons of decks every day, so it is important that your presentation stands out from them and is extraordinary. To achieve this, use visuals, concise text, and memorable images (not stock ones) to get your points across.
5. Pulling the wool over investors’ eyes
Sometimes firms in their presentations focus more on “advisors” than on team members directly involved in product development. Or mention projects in which they were involved not directly or for a very short period.
It is in the nature of individuals to need to associate themselves with large and renowned projects or market leaders. However, this is a losing tactic because investors often have extensive industry connections and can easily confirm this information. Be honest about your true strengths and weaknesses to present investors the right expectations and build strong and trusting relationships.
In the section about your team, highlight experience as evidence of what you are all able to. Show specific projects that team members worked on and what they were responsible for. It will even be nice to notice the achievements they achieved during these projects.
6. Too many slides
Ideally, your deck should consist of 10-15 slides. An vital purpose of the deck is to indicate the founder that he or she will be able to present his or her ideas in a clear and orderly manner. Cut off all unnecessary and generic details to maintain your deck running easily.
7. Lack of market validation
Neglecting to incorporate information about market research, customer reviews or competitive evaluation is a serious mistake. Investors and potential partners need to see evidence that there is demand for your product in the market.
Include data on goal market size, growth potential, and any early market traction gained. Testimonials, partnerships or customer reviews help validate your online business concept.
8. No call to motion
End your deck with a clear and compelling call to motion to make it more memorable and actionable. Indicate the amount you are raising so investors immediately know what you expect from them.
Be sure to elucidate how you propose to distribute this amount to assist investors understand how their funds shall be used. Define your value proposition, goals and exit strategy instantly and clearly show how your proposition can profit investors.
9. Neglect and avoidance of feedback
Delivering a memorable presentation requires thorough practice and refinement. Practice your presentation many times to make sure a smooth and confident delivery. Ask for feedback from mentors, advisors or colleagues to discover areas for improvement. The more refined your message is, the more likely it is to be remembered for the right reasons.
Update and improve your pitch after receiving investor feedback. Look for skilled analyzes of offers for related services.