Ready to raise a round of funding for your startup? Check out these interesting facts and data around pitch decks to make the most of your campaign…
Pitch decks are one of the most pivotal and valuable documents in history. Perhaps far more so than the invention of the business card. Looking at the impact of notable funded startups they are perhaps more powerful than some 100-year-old businesses, Super Bowl ads, entire national economies, and the founding constitutions or legal systems of some countries.
Think about the changes Facebook, Twitter, Airbnb, and Uber have made. Yet, despite the tens of billions of dollars in capital pitch decks can bring in for hyper-growth companies there is very little clarity on them, and best practices for creating and presenting them.
Consider that even Wikipedia does not have a page dedicated to Pitch Decks. Instead, you’ll be redirected to a page for ‘sales presentations’. The next runner up is a page for M&A pitch books.
Though you aren’t going to even get close to selling your company for billions and needing one of these pitch books until you’ve mastered raising startup capital with a pitch deck.
Pitch Decks 101
A pitch deck is a type of sales presentation. Startup entrepreneurs shouldn’t forget that overriding theme. It is far more a sales tool than a traditional investment prospectus or business plan. Though it does share traits of these documents and business tools as well.
A pitch deck is a collection of slides. Typically arranged in Microsoft PowerPoint or Google Drive. Its purpose is to present a startup business idea or thesis or to document an existing business and project the outcome of venture investment.
Pitch decks are used by startups before launching through a variety of rounds of fundraising over a period of years.
They tell the company’s story, explain why it is a good investment, and predict potential returns for investors.
A pitch deck can be shared via a link to these slides hosted in the cloud for new investor prospects or presented live on screen or stage to a real audience. Each presentation includes the most interesting facts and data around pitch decks pertinent to your new company.
Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
Interesting Pitch Deck Facts & Stats
Check out these interesting data points, statistics, and facts around pitch decks that can help you put them in a better perspective and empower your understanding of them and how to excel at fundraising for your startup.
1,000 Plus Pitch Decks Are Created Every Day
In fact, that’s how many pitch decks are believed to be created just in San Francisco, California each day. With other major cities like New York catching up with or surpassing San Fran as tech hubs, and new startup ecosystems thriving and surging around the world, there are many, many more decks being created.
While the number of startup investors and funds may have been growing as well, the limited number of these investors certainly sounds overwhelmed by pitches and funding requests.
It’s competitive, to say the least. Something to definitely keep in mind when it comes to investing in creating your next pitch deck and getting help connecting with the right investors.
Just 10 Slides Are Needed For Early Stage Startup Pitch Decks
One of the most significant, common, and financially deadly mistakes for startups is going too long with their pitch decks. Keeping it short and sweet seems almost impossible. Even for founders who can code virtual magic and map out space expeditions.
There may be scenarios in which a few more slides are justified. Note that this is almost exclusively for later-stage startups. Those which already have a substantial amount of existing operational and financial data to report, or more complex and multi-level business structures.
For early-stage startups, there is rarely justification to go over 10 slides. One for each point you need to convey, plus a cover slide.
The Best Font Size For a Pitch Deck Is 30 Point
Guy Kawasaki has said all text in a pitch deck should be at least 30 points. This is key for being able to deliver your points clearly and quickly. It also helps you stay disciplined in minimizing the text used on each slide, so your pitch remains simple and clean.
It is also wise to stick to clean, basic fonts that are easy to read. You don’t want to create any more friction than necessary. But be sure to include all the interesting facts and data around pitch decks.
How Long Investors Will Spend Viewing Your Pitch Deck
Despite how important and valuable pitch decks are and all of the money riding on them, investors now spend an average of fewer than 3 minutes viewing a full pitch deck according to Docusend.
This number has long been under 4 minutes. As of 2021, that time has dropped to just 2.7 minutes on average.
Consider what that means for each of your slides and trying to get your points across. You have just seconds to convey what is most important and get them to remember it. If you want them to remember anything, you need to keep it very simple and clear.
Percentage Of Pitches That Investors Fund
It is commonly said that investors only fund 1% of pitches they receive. What they don’t tell you is how widely this varies throughout the life of your startup and across different funding rounds.
According to Dennis Tracz, a serial founder and Entrepreneur In Residence at East Carolina University, angel investors only fund around 1 out of every 400 pitches. Those are far slimmer odds than 1%.
On the bright side, these odds can get dramatically better in later VC rounds. Especially as you build out your network, credibility and prove your company.
Remember, these are pitches given, not just contacts or emails sent out.
Number Of Pitches Delivered In Order To Get Funded
From the founder side, it can take dozens and even hundreds of pitches and actual investor meetings to secure that first lead investor. Things get a lot easier and accelerate after you get that first yes. Though these are the types of numbers that even the most successful startups and founders have to put up to get funded.
Be mentally prepared for this. If you are not you will probably give up too soon. There is no reason to get discouraged. It is just a numbers game. The more noes that you receive, the closer you should be to a yes.
Just make sure you also keep optimizing your pitch and campaign and are iterating your pitch deck to boost investor conversions. And ensure you include the most interesting facts and data around pitch decks.
The Average Length Of Time It Takes To Close A Fundraising Round
TechCrunch reports that it takes an average of 12 and a half weeks to close a Seed round. Yet, Dennis Tracz says that most startups give up fundraising after just 6.7 weeks of running a campaign.
If they would have just kept on going a little longer they could have landed that financing and made their venture a reality. You don’t fail until you quit. So, don’t quit. Keep going, keep reaching out, and improving.
It’s worth mentioning that a lot of entrepreneurs find it takes even longer than this. The better your deck is, the shorter this timeframe can be. Though don’t just give up after 12 weeks either.
Some have spent a year or more raising their first round. Of course, getting help upfront can make all the difference in how much time you spend on this phase too. Time is money, and time can make a big difference in your competitive edge and the viability of your idea.
Investors Spend The Most Time Viewing These Three Slides
According to TechCrunch investors spend the most time viewing these three slides:
- The financials
We can assume this means they consider these pages the most important to them and their investment decision.
It is worth noting that they spend more than double the time on the team and financials slide than the solution slide.
Only 58% Of Successful Pitch Decks Include A Financials Slide
According to Slidebean, less than 60% of successful pitch decks include a financials slide. That’s interesting given how much attention investors give this slide when included.
It is true that new startups may have no existing financials to report. As well as investors knowing that all of the best-laid plans and projections are likely to change dramatically in just a few months.
However, using this slide to forecast financials anyway can have great benefits. It allows you to create the narrative and story and demonstrate the returns possible.
Rather than having investors make their own guesses. It is your opportunity to demonstrate the value. And this you can do by including all the interesting facts and data around pitch decks
More than this, it proves to investors that you’ve really done your homework, know your space, and are not just making up overly bullish numbers to sell them. It is more of a test of your character and effort, than what the actual numbers are and how big your projections are.
This shows up in data points like profit margins, sales volume, customer acquisition costs, etc.
How Much Time It Should Take You To Deliver Your Pitch Presentation
Again, it was Guy Kawasaki who said your pitch presentation should take no longer than 20 minutes to deliver. This is true even if you have an hour time slot.
If you have an hour pitching slot, this gives you 20 minutes for introductions and to overcome any technical glitches and still be able to give an effective visual and verbal presentation.
It then allows you 20 minutes for an engaging Q&A session to fill in any gaps, and overcome any objections, and come to a powerful closing. If your verbal pitch is any more than 20 minutes you are going to have to sacrifice somewhere, and you don’t want to do that.
If you’re looking for more valuable tips on how to share information with your investors, check out this video I have put together. You’ll get some valuable insights into how to present vital data and stats.
How Much You Can Expect To Raise In A Seed Round
Funding rounds are getting bigger. Startups are also raising more rounds.
According to data from Crunchbase around 48% of Seed funding rounds raised more than $1M from 2018 to 2020. In fact, 6% of startups raised more than $5M in their Seed round. Almost three times more than in the previous three year period.
There are many variables, but do be sure you are watching the competition and are benchmarking against recent relevant rounds when you begin strategizing your next round. Including interesting facts and data around pitch decks will give you that important edge.
How Much Each Pitch Deck Slide Is Worth
If your startup is raising a $2M seed round with a 10 slide deck, each one of those slides is worth $200k to you.
If you are raising $20M, each slide is worth $2M to your company, and so on.
How Much A Good Pitch Deck Costs
The average cost of a professionally created pitch deck can run from $1,500 to $50,000. That’s just likely to go up too. Fortunately, if you are bootstrapping without a penny to your name then you can also use pitch deck templates to get started as well.
However, even if you paid $20k per slide, and it landed you $200K per slide in the capital, that’s really a 10x return on your investment. If you raised $20M, that would be a 100x return.
Worth thinking about.
How Many Serious Startup Entrepreneurs Are There?
The Dealmakers Podcast details the journeys of the most successful founders and fundraisers, and their tips and already has more than 1M downloads.
You are up against some serious competition. You can make it, but you need to learn and prepare and master the pitch deck more than ever before if you are going to stand out and convert the best investors. And the one way to make that happen is to get maximum traction by including interesting facts and data around pitch decks.
You may find interesting as well our free library of business templates. There you will find every single template you will need when building and scaling your business completely for free. See it here.