Building The Future of Freelance Software / slashdev.io
Top 5 Pitch Deck Mistakes to Avoid When Seeking Funding/
As a startup, securing funding can be the difference between success and failure. Your pitch deck is crucial to making a strong impression on investors and getting the funding you need. However, many entrepreneurs make common mistakes that can hinder their chances of securing investment. In this article, are the top 5 pitch deck mistakes that are seen most often and the best practices on how to write a perfect pitch deck.
1. Failing to Anticipate Questions or Feedback
An investor will likely have questions and feedback about your pitch deck. If you are unable to answer their questions, it can put you in a bad position with potential investors. To avoid this mistake, practice your pitch deck in front of colleagues, peers, friends, and family to get critical feedback. Prepare answers to potential questions about your team, market opportunity, financials, competition, and more. Being prepared to think on your feet will demonstrate your competence to investors.
2. Providing Unrealistic Projections
Investors are not interested in outlandish projections that lack demonstrative evidence. Provide realistic projections based on identifiable risks and competition in the market. If you project high-end figures, be prepared to justify them with evidence.
3. Not Being Able to Tell a Story
Pitch the problem to the investor before pitching the solution. Clearly identify the problem, its size, why it’s important, and who you are solving it for. Once you establish the problem, you can then pitch your solution. Boil your business proposal down to the fundamentals to pitch the idea clearly and coherently to an investor.
4. Failing to Do Your Homework
Research the type and size of investments a firm or investor has made in the past to ensure your pitch aligns with their interests. Avoid sending unsolicited executive summaries or business plans to investors. Find a high-standing go-between, such as a lawyer or colleague, to refer your work to investors. Doing your homework will ensure you don’t waste time delivering a pitch deck to a disinterested investor.
5. Not Having a Professional Pitch Deck
Your pitch deck should look professional and not done by an amateur. Ensure that you have a strong, professional-looking design, organized content, good transitions, and presentable charts or graphs. Your presentation should not be text-heavy and should ideally be less than 15 slides. Use templates for guidance, hire a designer if necessary, and make your pitch deck your own.
In conclusion, delivering a perfect pitch deck is crucial for securing funding and taking your business to the next level. To avoid common mistakes, it is important to anticipate questions or feedback, provide realistic projections, tell a clear and logical story, do thorough research, and have a professional-looking pitch deck. By following these best practices and tips, you can increase your chances of success in fundraising and making your business idea a reality. Remember, investing in a professional pitch deck can be a small cost in the grand scheme of things, and could be the key to getting the deal you’ve been waiting for.