What is the secret behind creating the perfect pitch deck?
According to research, plenty of it has to do with numbers and studying data. While cleverly contemplated content and seamless execution matters greatly, a lot comes down to statistics.
Interestingly, there is an abundance of statistics on pitches of various branches and industries. In addition, these reveal an array of conclusions that will help you conceptualize your pitch deck and present it right.
Now, let’s think of your pitch deck in terms of numbers.
Here are some of the figures that count the most:
- 3 minutes 44 seconds is the estimated time an investor will spend considering your pitch, in areas such as finances, team management, and competition. This is why a clear and concise presentation is crucial for winning investors over.
- 10% of your pitch deck is your idea, but 90% of it is execution, so make sure your presentation is well-prepared and your team carefully selected.
- The 10/20/30 formula. According to pitch deck guru Guy Kawasaki, it all comes down to the 10/20/30 rule:
A quality pitch deck should be composed of no more than 10 slides. However, when doing a Serie A pitch, remember that you will have to include three times the statistics than you would in a regular pitch deck, equating to around 24 slides total.
The key behind an effective pitch deck is to keep it short and precise. All in all, a well-executed pitch deck should not take longer than 20 minutes to present. Got any extra time left? Save it for additional discussions and Q&A! Remember, a high-quality pitch should always spark up the interest among potential investors.
Instead of using too much text in your pitch deck, keep your information in 30 point font or bigger, requiring you to present only the most essential information to your investors.
- When presenting financials, include no more than 7 lines of information in the slide. Reading excel sheets within a slide is never anyone’s idea of fun, so present your numbers clean and clear.
- It should take an investor no more than 5 seconds to understand the contents of each slide you present, so don’t overdo the content. KISS (Keep it Simple, Stupid) is the motto!
- Include 20% more graphs and statistics than words, as interested investors respond better to organized information underpinning the logic in your presentation.
- 60% of all pitch deck slides are blue in color, which statistically works well for most industries. Blue signifies trust and reliability — a safe bet if you want to emulate the likes of HP, LinkedIn, CrunchBase and Facebook.
- Include 3 actions or types of information in each slide. Many major companies, such as Airbnb, apply this rule when making their pitches.
- 10% of all potential investors will read your pitch deck on their mobile phone. Because of that, make sure your slides are compatible with smartphones and mobile devices.
- The 30-second pitch — this is why it’s called an elevator pitch as it shouldn’t last longer than an elevator ride.
- On average, 3,000 startups are presented to investors each year. Out of all, only 15 pitches make it to the next stage.
- Prepare a 3-5 year projection plan, estimating the potential profit of your business. Your investors want to see continuity, growth and scale so make sure this is reflected in your projections.
- 82% of all pitchers use visuals to enhance their presentation, with most startups using 50% screenshots, 14% demos, 12% maps, and 6% video content.
- Pitch decks typically offer 41% information on Required Investments, but bare in mind most investors prefer higher representation.
And there you have it, the science of a well-crafted pitch deck. But figures aside, what is important is to keep your investors interested and well-informed, so instead of expecting success — prepare for it!