Raising startup capital is a complex process. You'll need a killer pitch deck to get investors to open their wallets. To help you avoid these common pitfalls, we've compiled a list of pitch deck mistakes made by startup entrepreneurs.
What Is a Startup Pitch Deck?
A pitch deck is a short, visually appealing set of slides that convey essential information about your business. It includes fundraising needs, target market metrics, financial goals, and other relevant data. Many mistakes are made in the startup pitch deck by entrepreneurs. It's inevitable. We've all been there, and it's why we're here today. Ensure you avoid these ten common mistakes when putting together your pitch deck to give your business the best chance of success.
Too Many Slides
When you pitch your business to investors, the more slides, the better, right?
Not necessarily. One of the biggest mistakes you can make is too many slides in your pitch deck. Investors want to see that you're confident in your product and know what you're doing—not that you have much information to share. If they feel like they're being bombarded with data, they'll tune out before hearing what you have to say.
When you get ready to pitch your startup idea, think about how much information will be helpful to the investor. Please don't include anything that isn't necessary for them to understand how great your company is. All you need is 12-15 slides to make your case in front of investors.
Too Many Words
One of the most common mistakes we see is that entrepreneurs fear being too brief, so they keep adding more text to cover everything. This is not a good strategy! You want to avoid overwhelming your investors with information overload or making them feel like they need an internet handy on some of the industry jargons. Instead, it would be best to focus on delivering your message clearly and concisely using visuals and short sentences.
Sticking to bullet points in your pitch deck will help you avoid lengthy, uninteresting paragraphs. The company's perfect pitch deck is as visual as possible and includes pictures, tables, and charts.
Poor Layout & Design
Another mistake founders make choosing the poor quality design and layout for their presentation. Pitch deck looks can significantly impact whether investors will even listen to it.
You don't have to be an expert in design, but you should understand what works and doesn't. Regarding layout and design, there are many elements to consider for a clear structure.
Margins, font size, color palette, and images are essential in creating a well-designed document. And it's important to be consistent with margins, font sizes, and colors throughout your document. It is recommended that you work with a designer to make beautiful slides.
Lack of Storytelling
Storytelling is a great way to make an impression on potential investors. Investors are more likely to remember you as an individual after meeting you in person than to place your business or product. So, to make your presentation stand out from the crowd, you should use storytelling techniques.
When you tell an investor a story, they will better grasp your startup's vision. Storytelling is best explained as the why of your startup, and it can take multiple forms, including:
- A narrative about why you started the company in the first place
- The story of how you got from point A to point B
- The story of how your product or service solves a problem
The broken flow of the content/pitch
A common mistake in startup pitch decks is an unsteady flow of content. It's essential to remember that you're communicating with your audience, not just presenting information to them. So when creating a deck, ensure you're thinking about how your content will flow from one slide to the next and how your audience will receive it.
For example, if you want to move from discussing your product's features to its benefits, make sure there's a clear transition. If your product has several features and benefits, consider grouping them into one slide for clarity so that you don't lose your audience by giving them too much at once.
Not including essential slides
When you're building your pitch, some slides are so crucial to the story you're telling that they need to be included, even if they don't seem all that exciting. Slides like this serve as reminders of why your product exists or what problem it solves for users. They also help keep everyone on track during the presentation, which can be essential if you're running a long pitch or if multiple people are presenting simultaneously.
While it is true that some investors and customers will ask for additional information, it can be challenging for them to do so. Suppose you need to have all of your essential slides in your deck. In that case, you risk losing out on a sale or investment opportunity because the person you're pitching was unable to get the information they needed from your presentation.
Taking too long to present
Taking too long to present is another big mistake in a startup pitch deck. If you take too long, you risk losing your audience's attention and never getting it back. You also miss out on connecting with investors and getting them excited about your product or service. Keep you presentation under 15 minutes.
If you have an effective way of presenting your startup, it can be easier to capture the interest of potential investors who may be busy or distracted. To get them interested in what you offer, you must create a presentation that gets right down to business and doesn't waste any time.
Lack of clarity on ask
This is important because it's the only way investors can decide whether they want to fund your startup. They need to know what they're getting into and why this funding will be worth their time and money. You need to clarify what you're asking for, why you need it, and how much you think it will cost. If you don't do this well enough, no one will be able to tell whether or not they want to invest in your company—and that means no one will invest!
So take a step back from what's happening around you during an investor meeting and focus on explaining why someone should invest in your idea/product/service.
