Reasons Why Your Pitch Deck Failed
Founders at times fail in adhering by a standard criteria in their pitch deck by making certain mistakes. No set of specified rules has ever been circulated in the startup ecosystem that decided whether a pitch deck is good enough. However, we should still be aware of some driving factors which can make or break our deal with investors.
In this article, we'll briefly explain to you some common mistakes that founders make while preparing their investor pitch deck.
1. Not Following The Structure of A Pitch Deck That Investors Expect
There's no predetermined format to a pitch deck that is required to be followed at all costs. However, investors still expect correctly placed slides in a pitch deck as per the industry requirements. Founders usually overlook this factor and it often turns out to be a deal breaker.
Here's an overview of how an ideal pitch deck is structured:
- Company Overview
- Market Size
- Business Model
- Target Customers
- Unique Value Proposition
- The Technology
- Current Traction
- Financial Projections and Ask
- Roadmap and Go-To-Market Strategy
- Team Behind
2. Not Identifying The Size Of The Market
Failing to dedicate enough time and effort in conducting market research prior to preparing the Market Size slide is a common mistake founders make. Find the size of the Total Addressable Market (TAM) along with Serviceable Available Market (SAM) and Serviceable Obtainable Market (SOM) and add them in your pitch deck accurately.
3. Not Adding The Current Traction Slide
Current traction determines your evident achievements so far, be it financial or qualitative. Customer feedback in the form of testimonials, sales growth, partnerships, etc, fall under this listing.
Missing this slide could lead the investors nowhere in decision as they'll remain unaware of your company's progress ever since it was established. Another component to add is the part where founders should now be mentioning their revenue and other metrics pre-pandemic and post-pandemic.
4. Including More Than 15 Slides In Your Pitch Deck
Avoid forcing unnecessary information in the pitch deck. It's recommended to not incorporate more than 15 slides in your pitch deck. The reason being that investors would face trouble reading a long presentation and it might also make them lose interest in your product.
5. Stating Unrealistic Financial Projections & Ask
It's important to state financial projections that are neither unrealistic nor too unexciting. Owing to quite a few years of experience, investors are well aware of what revenue figure is too unlikely to be achieved in the next two years.
For an instance, if your company hasn't been generating sufficient revenue yet, you can't anticipate a growth of 15x after raising funds. The ask slide should again include reasonable expectations. Let the investment history be correct and accurate. Spending a considerable amount of time for the intensive planning of fund allocation should be encouraged.
"Avoid making the above mentioned mistakes in your investor pitch deck to raise capital for your startup with ease!"