The way investors read and analyze pitch decks changes yearly, based on factors like inflation, interest rates, and accessibility to capital. Thankfully, DocSend released a “state-of-the-union” report on pitch decks and TechCrunch gave us a further breakdown. Here are the top 3 takeaways; you now have less time to impress, the purpose slide is the gateway, and the business model and traction get you picked.
Less than 3 minutes to Impress
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Unfortunately, you now have even less time to impress an investor than last year. This shouldn’t be too surprising as the down market has reduced the number of deals that investors are funding, while the number of startups is increasing. This means a long pitch deck with a ton of content and words will not help you, and this year it will hurt you even more. The key to success will be how concise you are able to get your message across and being able to provide the key data that investors are looking for this year.
Your Purpose Slide is the Gateway
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Besides less time overall, many pitch deck slides that were important are seeing reduced time spent on them by investors, as investors are tuning out if they don't resonate with your company purpose slide. This is the initial filter that investors are using to quickly sort through the pile of pitch decks they are getting. My advice here is to make sure your problem or purpose section is not only concise but crafted to show your alignment with the mission of the investors that you are pitching to.
Get a Meeting with your Business Model and Traction
Image Credits: DocSend
If you make it past the Company Purpose Filter, it looks like investors are going back to the numbers this year as they try to pick the companies that have well-thought-out business models and traction back them up. This is essentially investors taking the companies they resonate with, and figuring out which companies are the least risky and furthest along. With so much importance riding on these sections, make sure the data is easy to read and that the point you are trying to make is clear.
Conclusion
Amazing write-up and report to help you stay ahead of other startups that are fundraising. Especially as we enter a down market, what is considered important and how investors are filtering pitch decks will become key to your ability to get funding as investors become more cautious.
There are other great takeaways and helpful tips and trends outlined in the DocSend Pitch Deck Playbook and Report that are listed below.
Additional Resources
TechCrunch Pitch Deck Review 2022
DocSend PitchDeck Playbook
Sample Pitch Decks
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