It can really make you feel lost…
Well, that is how 6 out of 10 pitch decks that come across my desks make me feel.
Working for an investment bank we see a lot of decks. A lot. So why do only a handful really accomplish their goal? It is not that they are poorly produced. On the contrary, the majority of pitch decks we see present really well. Clearly start-ups and early-stage companies are becoming increasingly savvy and tuned-in to effective communication tactics. For instance:
But the truth is that these tactics are mere window dressing if the investment case is not clear.
Entrepreneurs need to be aware that a pitch deck is not just a branding exercise, a design portfolio or traditional B2B sales collateral. It has two overriding goals:
So it always surprises me when I read a professionally designed deck, get to the end and ask myself, “WHAT THE HELL WAS THAT ALL ABOUT?”
At first glance these decks have all the elements you would expect. So why don’t I get it?
It often comes down to assumptions.
When assumptions work their way into pitch decks they become elusive.
I liken it to being late to a theater production and then sitting behind some really tall people. You have some sense of what is going on, but there is a lot you are missing.
I’ll give you a real world example.
Not too long ago we received a pitch deck for an early-stage mobile gaming business. Aesthetically it looked great – clean design, on brand, correct section flow and just the right number of slides.
However, unless you were a game developer or an experienced investor in that field the number of acronyms, technical terminology, and “take it for granted that you know nothing about mobile gaming” news/ideas left me alienated (feeling like the stupid kid in the room). It forced me to consult Google just to decipher individual pages. It was hard work.
No doubt the deck would have made perfect sense if the founders presented in person, but as a stand-alone piece of communication it failed. I had no sense of context, or at least not enough.
Most pitch decks like to present their investment case as a ’no brainer’ – i.e. with a business concept this brilliant who wouldn’t want to invest? And in the case of your business you might be right, but don’t assume that investors share your knowledge and experience.
Unless you are pitching to an investor that is intimately familiar with your industry you really want your deck to stand on its own two feet and be accessible.
The key is to assume nothing. Approach your deck with the mindset that any investor reading might have zero background on either your company or industry. If an investor can come to the deck ‘cold’ and still get it then you are doing a pretty good job.
But of course this is where it gets tricky.
Somehow you need to simultaneously educate ‘cold’ investors in a way that is economical (you can’t have 10 slides of exposition) whilst not patronizing those who are more knowledgeable. And don’t forget that you also need to craft a clear and enticing investment case.
If that sounds challenging, it is.
Distilling complex concepts into concise and engaging communication within a finite number of slides is a challenge. Needless to say, that is why there are communication professionals that specialise in this area.
Of course there are loads of free resources available online that will tell you how to put a pitch deck together – i.e. the mandatory sections, the correct slide flow, what financial information is required, what fonts to use, etc. All great and useful information.
However, these resources are just tools. It will always come down to the quality of your ideas and how well those ideas are expressed.
OK, a pitch deck is not brain surgery but it certainly requires a lot more effort than many might initially think. It is not easy and don’t let any start-up guru tell you that it is. After all you are asking someone to hand over their hard earned cash.
So, when it comes to pitch decks assume nothing.
Put on your investor hat and question every page, every fact and every figure. Maybe even let your friends have a read. If they can’t understand a particular element, don’t argue, figure out a way to make it crystal clear. Because far worse than not raising capital from investors is having them say, “WHAT THE HELL WAS THAT ALL ABOUT?”