Russ Heddleston Factor
high possibility of an extremely active fundraising marketplace for the remainder of the year, creators require to know how to benefit from it. As you can see from the DocSend Pitch Deck Interest Metrics, spikes in the marketplace formerly have actually led to some quite specific behaviors by VCs.
Here are some pointers on how to utilize the increasing levels of VC interest to your advantage.
VCs are spending less time on your deck, so specify
We’re seeing record low time spent per pitch deck. We understand from previous research that VCs spend on average 3.5 minutes per pitch deck. However over the last quarter that time has actually dipped below 3 minutes. That can in fact be an excellent and a bad thing. It indicates that VCs are simplifying their procedure of looking at decks, which indicates they probably understand what they want. The downside of this is if you break a few cardinal guidelines today your deck could wind up in the reject pile.
From our research, VCs anticipate a deck to be around 20 pages. They anticipate a straightforward story that starts with your issue, causing the solution, and then your item and organisation design. Our data found that VCs react best to 35-50 words per slide (too couple of words per slide is likewise a concern; you wish to provide sufficient context for your deck to make good sense without you presenting it). The only location you can increase your word count is on your Group page. Our data shows the typical number of words on an effective Group slide is 80. This provides you room to highlight the founding team’s appropriate experience and demonstrate how you’re uniquely suited to construct your company.
You have to include a “why now” slide and it must point out COVID-19
We currently understand that financiers respond well to a Why Now slide. Our research shows that 54% of effective pitch decks included a Why Now slide, where only 38% of stopped working decks included it. That slide now has to work twice as hard. We’re speaking with financiers that they expect to see info in your pitch deck about how your company has been affected by COVID-19 and how you prepare to handle that effect moving forward. Even if the pandemic has had no product effect on your service, the investor will still have the question. Go out in front of it with a well-formed reaction near the start of your deck.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.