Part 7: Common mistake: missing important information

In our previous posts, we shared a list of common mistakes we found across >150 pitch decks we reviewed in the last 12 months. Let’s continue with “missing information.“

Yes, you’d be surprised how often key information is missing or poorly explained. The latter is just as inexcusable as the previous. There’s nothing more frustrating than spending 5-15 minutes on a deck and coming out of it not understanding what exactly it is that the start-up is doing.

Please, please, please: explain your vision, product, etc. in enough detail so that your reader can get it. You should not need to voice over your deck because you won’t be in the room when it’s first read. Remember that the primary goal of your pitch deck is to help investors decide whether to take a call with you. Once you're on a call, you likely won't open up your deck.

While many decks are hard to follow, we also frequently find that critical information is missing. The most common item that’s typically missing is the funding ask.

What’s the funding ask slide? It covers how much money you’re raising, what type of instrument you’re using (SAFE note, convertible note, priced round), what value inflection points you expect to hit with the cash you’re asking for, and how exactly you’ll use the capital you're raising (called the “use of proceeds”).

If this information is missing, the investor has no way of knowing whether you’re a fit for their investment thesis. If they do end up talking to you, it’s like talking to a lead that’s unqualified. It’s going to waste your time and be frustrating for everyone. More likely, though, they’ll get a negative impression about you because you don’t know how fundraising works (which is a key capability, see our first email) and not talk to you at all.

As you’re putting together your funding ask slide, note that you don’t need to mention your valuation and which specific investors have committed to your round. In fact, mentioning these can hurt you because the former gives away negotiation power and the latter may lead to investors talking to each other and ganging up against you.

Talk soon

Rafael

PS: How do we help you? My team and I build pitch decks, review existing decks, and offer pitch simulations. Get in touch if you or someone you know may be interested.

PPS: This mini course is based on our popular “Fundraising & Pitch Deck” newsletter.