Are you a fresh business graduate brimming with innovative ideas? Well, that’s a great beginning toward entrepreneurship! However, you need capital and funds to transform your idea into a funded venture. For this, you must convince potential investors to believe in your idea and persuade them to invest in your project. Here, a well-designed pitch deck can do wonders.
A pitch deck is a canvas that lets you impressively showcase your project’s or product’s unique value proposition, vision, business model, team strength, market potential, and financial viability to investors.
According to a source, more than 1,000 pitch decks are created every day globally. According to a survey by the National Venture Capital Association, approximately 89% of venture capitalists expect a stellar pitch deck during fundraising. (source)
These statistics underscore the importance of a gripping pitch deck.
Stay tuned as we unfold more statistics and tips that will help you create a modern and trendy pitch deck and succeed in pitching to your potential investors!
1. The Decline in the Average Deck Viewing Times of Investors
What Statistics Say:
According to one of the studies from Harvard Business School, an investor or venture capitalist spends only 3 minutes and 44 seconds on a pitch deck. (Information Source: TechCrunch)
According to research by DocSend, the average deck viewing times of investors between 2022 and 2023 reduced by 16% on successful decks and 7% on unsuccessful decks.
According to research, in 2023, the fourth most scrutinized section of pitch decks was financials. Venture capitalists spent 48% more time scrutinizing the business model and 25% more time on the traction section.
In 2023, 110% more time was spent by investors on unsuccessful traction slides. Unsuccessful business model slides received 85% more time. (source)
According to the source, compared to 2022, in 2023, investors spent 20% less time scrutinizing seed decks.
In 2023, the average seed deck viewing times of investors dropped under 2 minutes for the first time.
According to Astel Ventures, inventors read the ‘executive summary’ slides of 80% of the pitch decks they receive.
Investors spend 21 seconds on average on each slide. (source)
Expert Tips:
The current investing landscape is stiffer than ever. As investors are always in a time crunch, they are more selective. So, to capture their attention in mere minutes and secure funds, you have to compete harder.
Remember, today’s investors are focused not only on the ‘what’ of your business but also on the ‘how’ and the ‘why.’
Avoid these mistakes to make your pitch deck influential:
- Not understanding the needs of investors
- Not dedicating time to market research
- Not showcasing your data in a transparent manner
- Not reserving time for questions
- Not refining your deck as per investors’ feedback
- Not following up with investors after the meeting
2. An Ideal Pitch Deck Should Not Have More than 15 Slides
What Statistics Say:
According to a survey, decks with 11-20 slides have 43% more chances of securing funds. (Information Source: Pitch Deck Creators)
According to the 10/20/30 rule coined by Guy Kawasaki, the ideal number of slides in a pitch deck is 10. (source)
The financial slide is one of the most important slides; however, only 58% of successful pitch decks have this slide. (Information source: Slidebean)
Expert Tips:
In the case of a pitch deck, less is always more. 10-15 slides in a pitch deck are sufficient for early startups.
To avoid too many slides in your presentation, take time to learn what matters the most to your investors. Incorporate only relevant slides having information that provides investors with a strong reason and convinces them to invest in your idea or project.
Don’t include more than 15 slides in the deck. Also, avoid including more than 6 words per line (20-25 words per slide) and 6 bullet points in each slide.
A well-crafted pitch deck highlights vision, market potential, unique value proposition, traction and milestones, a well-thought-out and realistic approach to addressing potential risks, the competence of the team, and endorsements and testimonials from customers or industry experts.
3. Including a Story in the Pitch Deck Makes It More Impactful
What Statistics Say:
Approximately 20% of on-stage pitches comprise personal stories. (source)
Expert Tips:
A great pitch deck narrates a visual story of your venture, creating an emotional resonance between your business and potential investors. You can etch crucial data in the audience’s minds by weaving it into a story or personal anecdote.
There are various ways of storytelling in your pitch deck; however, you must choose the one that best highlights your venture’s important aspects. Keep the following points in mind while including a story:
- The story should have a precise beginning, body (middle section), and end.
- It should take the audience on a journey and appeal to their reasoning abilities and emotions.
- Include relatable characters in your story.
- Add a personalized touch to your story by incorporating your personal experiences.
4. Very Few Startups Succeed in Securing Funds
What Statistics Say:
Only 1% of startup decks successfully secure funds, and 99% fail to do so. (source)
A venture investor receives approximately 3,000 pitches yearly and funds only 9 startups. An angel investor, on the other hand, receives 500 pitches every year, and only 1 in 400 secure funding. (source)
Expert Tips:
As investors receive hundreds of pitch decks daily, they can’t go through each. You can differentiate your deck and make it more meaningful to investors by including the following information:
- How does your idea have the potential to make a difference in the market?
- What sets your product/service apart and distinguishes it from the competition?
- Growth trends, market dynamics, and potential customer adoption rates.
- What is your business/revenue model?
- Highlight your team members’ skills, knowledge, and competence.
5. The Executive Summary is the Crucial Section of the Pitch Deck
What Statistics Say:
Most investors dedicate more time viewing the executive summary than the first top three slides of that deck combined. They don’t spend more than 45 seconds on reviewing a 1-page executive summary, which is poorly designed and lacks the key points. (source)
According to findings, a 3-5 page long executive summary likely loses 60% of investors. An ideal summary is one that highlights important key points in only 2 slides.
Expert Tips:
A well-written executive summary gives an overview of your business to investors in a concise yet persuasive manner, piquing the interest of potential investors and opening doors to further discussion/meeting.
- Don’t add any of the fluff to your summary.
- Highlight the milestones you have achieved, an overview of your customers, the management team’s introduction, and the business model.
- Showcase market opportunity and the forecasted growth over the next 5 years.
- Include details of the investment, such as the ask, how you will utilize funds, how much equity you will sell in return for the investment, etc.
- Provide contact details.
6. The Design Can Make or Break Your Pitch Deck
What Statistics Say:
15% of investors read pitch decks on screens of small phones (source). It underscores the need and importance of effective design.
Getting a pitch deck designed by a professional designer may cost you from $1,500 to $50,000. (source)
According to Harvard Business Review, an average of 18 hours are invested by startup founders in refining and fine-tuning their pitch decks. 60% of them even invest more than 20 hours! (source)
For every $2 million raised by startups, they invest a minimum of $1,100 in design. (Information source: SketchDeck)
According to Astel Ventures, slides should be designed in such a manner that the content can be comprehended within 20 seconds. The deck should not have more than 30 takeaways.
The best font size of text in a pitch deck is at least 30 points. (source)
Expert Tips:
The design of your pitch deck demonstrates your professionalism and passion for the product/project and helps you establish credibility and trust.
You should consider the following points while designing the pitch deck:
- Keep a uniform and consistent typography, imagery, and color schemes across all slides of the pitch deck.
- Opt for a simple design that makes your content shine.
- Replace lengthy paragraphs with bullet points and relevant visuals (graphs, charts, infographics, etc.).
- Use ample white space in slides to give them an uncluttered look.
- Don’t go overboard with animations.
- Design the deck in such a way that the quality of visuals doesn’t get impacted even on smaller screens.
For a more professional-looking and visually consistent presentation, you can consider downloading pre-designed pitch deck templates that are easy to customize.
7. Visuals Make Your Pitch Deck Spellbinding
What Statistics Say:
According to research conducted by 3M Corporation and the University of Minnesota, pitch decks that comprise visuals are 43% more attention-grabbing than decks without visuals. (source)
Expert Tips:
Information presented through visuals fosters an emotional connection and is more likely to be processed and remembered well than text alone.
- Visuals should be relevant to your pitch deck and support your key points.
- Don’t brim visuals with too much content.
- Visuals should be understandable and visually appealing.
- Use right-sized fonts and high-contrast colors to make visuals readable from a distance.
8. The First 30 Seconds of Your Pitch Deck are Crucial
What Statistics Say:
According to Astel Ventures, you lose investors for the entire pitch if you fail to grab their attention in the first 30 seconds.
Expert Tips:
The initial 30 seconds of your pitch deck help investors decide whether to fund your project/idea or pass it over. So, make these moments count and your deck distinguished by following these tips:
- Keep it simple, clear, brief, and engaging.
- Avoid using technical terms or jargon.
- Highlight your USP and competitive advantage.
- Practice until you deliver it right.
9. AI-Generated Pitch Decks are the Future
What Statistics Say:
80% of investors found pitch decks created using GPT-4 more compelling and convincing. (source)
GPT-4 generated pitch decks have a 39% higher likelihood of getting approval than human-created decks. (source)
In the technology sector, GPT-4 created pitch decks deemed 70% more influential and persuasive. (source)
Expert Tips:
Artificial intelligence has transformative power. It can do the heavy lifting for your pitch deck, redefining customization, accuracy, and efficiency. However, AI can’t replace human design expertise and creativity. AI can make your pitch deck good, but the human touch can make it look great.
The best strategy to leverage both AI and human expertise is – to use artificial intelligence to get a head start but use professionally designed templates or hire an experienced designer to bring the finishing touch and reflect your brand’s ethos.
The Wrap Up
With each passing year, the investment world evolves, and new trends in pitch deck design and content surface. Adapting your pitch deck to the changing landscape of investment and modern investors’ preferences and expectations is important to increase your chances of securing funding.
The crucial insights in this article will empower you to craft a compelling pitch deck that will help you navigate competition and impress investors.
