In 2022, investors will spend 24% less time looking at pitch decks than they did in 2021. On average, it takes him just under three minutes to convince an investor to attend a meeting with you. In fact, for that deck, failure Investors give up after just 2 minutes and 13 seconds to raise money. It doesn’t take long to make a first impression, so it should be taken seriously.
I rarely get to talk to pitch deck geeks like myself, but when I finally got to talk to a research leader, DocSend, How come you can’t? Dive deep into what the data tells you about what makes pitch decks successful and the metrics that don’t work as well.
The biggest trend shift in how investors view pitch decks is that investors are spending significantly less time on slides overall. Where The time spent is changing.
“This year, we know that investors are spending less and less time on pitch decks. The amount of time spent remains very low,” explains Justin Izzo, Research Lead at DocSend. “What’s amazing to me is that I know that the Products and Business Models section of Deck is where investors really want to go, especially for early-stage companies. We’ve almost halved the time we spend on these sections at the pre-seed level, and investors are still scrutinizing these sections, but they’re doing it faster than ever before, so founders are more likely to own their businesses. You have to think really hard about it, but you have to keep your communication brief.”
One of the biggest changes is that investors are spending more time on what DocSend describes as the purpose of its startup slides: the “why are we doing this” part of the story.
“Founders have to think really hard about their business, but they have to communicate it succinctly,” laughs Izzo. It’s not easy, but founders should strive for it. ”
The third-longest-viewed section is the company purpose section (following the product and business model section), but Izzo says this section is usually just a small part of the slide deck and is often , pointing out that it’s just one or two lines of text. On deck he slides one or two.
“Usually it’s a to-the-point, balanced statement about what the company is about. What struck me at the time was that the past few years have been mediocre in terms of viewing time,” says Izzo. “This year has really surged and investors tend to use this section as a sort of gatekeeper. I would like to know in
It makes a lot of sense. Business purpose statements are often formulated as follows:Venmo for fundraising” Also “Transform the customer experience with human-centric AI” Also “Issue Tracking SaaS for Physical Product DevelopersBy the way, these are all examples from the Pitch Deck Teardown series.The great thing is that investors can use those statements to see if an investment is potentially right for them. investment paperIf you don’t invest in SaaS, or are not interested in fintech, or you can’t complain about customer support, it’s a pretty easy filter to give the startup team a ‘no’. Dive deep into your product, team, or market size.
“The key is whether founders can communicate vision and concreteness, but they can communicate what their company does in a compelling way. and show that this paper is a fit, which prepares investors and prepares them to read the rest of their story,” says Izzo. It’s hard to do this in sentences, half sentences, or anything like that.
Successful and unsuccessful deck slides
The DocSend team analyzed 320 materials to see which slides were included in each. Teams was the only slide that worked for 100% decks, both successful and unsuccessful, but things start to change a bit from there.
The most interesting difference between successful and unsuccessful decks is the missing slides. Surprisingly, only about a quarter of the startup decks contained financial information (believe me. you really need an operational plan), but I wasn’t surprised that none of the failing decks had finances.
Another big difference is the competition slides. Every deck should have an overview that covers the competitive landscape.
“The first thing that is often missing is the competition slide. “I always say include some analysis of other players in the field, but you can define the field however you want.”
Created by the team at DocSend fundraising playbook or sort, and Union Status Report In terms of funding, we compare the shift from 2021 to 2022. This makes for a fascinating in-depth read that will give you an idea of how the fundraising process looks like.