As startup funding becomes increasingly challenging to secure, new data reveals the key elements that can make or break a pitch deck. A comprehensive analysis of 210 pre-seed pitch decks, spanning from 2023 to the first half of 2024, has unearthed valuable insights that could help founders better attract investors. In a market where high-interest rates are tightening the wallets of angel investors and venture capitalists, these findings from Dropbox/DocSend might just provide the roadmap to success.
1. Start with the Problem, Not the Product
The data highlights that startups are more likely to succeed when they lead with the problem they are solving, rather than diving straight into product specifics. The survey indicates that introducing the problem and solution early in the pitch provides vital context for investors, helping them understand the significance of the product.
The most successful pitch decks followed a consistent structure. According to the report, these included essential slides on the business model, market opportunity, traction, financials, and competition, while avoiding getting bogged down in too many details early on. In contrast, startups that immediately jumped into product details often lost investor interest.
2. Have a Ready-to-Go Product
Another major factor that set successful startups apart was their product’s stage of development. Nearly half of the startups that secured funding had already launched their product, while 38% were in advanced stages like alpha or beta testing. On the flip side, the lack of a concrete product was the downfall of many; 60% of unsuccessful pitches came from startups without a ready or near-ready product.
3. Showcase Your Team’s Strengths
With the rise of disruptive industries like artificial intelligence, investors are taking more risks. However, they are increasingly scrutinising the teams behind these innovations. The data shows a marked increase in investor focus on the Team slide, with investors spending 30% more time reviewing team details in 2024 than in the previous year.
Younger, smaller, and more diverse teams were particularly successful. Startups led by founders in their 20s were more likely to secure funding, raising an average of £520,000 with around 36 meetings, compared to £460,000 raised by founders in their 40s, who needed closer to 50 meetings to secure backing. Teams with two founders performed better than those with larger teams, raising an average of £500,000, while larger teams of four or more averaged just £340,000. Additionally, diverse teams, particularly those with gender or minority representation, attracted the highest funding, averaging £540,000.
4. Keep It Brief and Focused
Time is a precious commodity in a pitch meeting. The survey revealed that pitch decks are shrinking, with successful decks averaging just 10 slides in 2024, down from 14 in 2023. Founders have less than two minutes and 15 seconds to make an impression, and slides that bog down in financials and competitor analysis are increasingly being cut.
Investors are looking for concise, focused narratives that are easy to digest. Founders should aim to deliver a clear and compelling presentation that outlines the problem, demonstrates product readiness, and highlights a capable and diverse team. This approach could be the difference between walking away empty-handed or securing the seed funding needed to take a startup to the next level.
With these data-backed insights, founders can build more effective pitch decks, making them more appealing to today’s selective investors and giving them the best chance at success in a challenging market.
