Three Startup Pitch Deck Mistakes That Are Red Flags For Venture Investors

🌈 Abstract

The article discusses the role of a venture investor and the common mistakes they see in startup pitch decks. It covers three main issues: exit slides, milestones, and founder/team bios.

🙋 Q&A

[01] Exit Slides

1. What are the issues the author sees with "exit" slides in seed decks?

• They narrow the thinking to what the company is today, rather than what it can become
• They talk about potential acquirers and market comparisons, which can lead to obsessing over the acquirers' market moves instead of just building a big, profitable business
• They focus on realizing value rather than creating value - the author says if you can build a big, profitable business, the exit opportunities will come
• They suggest risk aversion and a desire for a quick cash-out rather than a long-term venture partnership

[02] Milestones

1. What does the author recommend founders focus on in their fundraise slides instead of just the time the funding will last?

• Focus on the specific milestones you will use the funding to achieve, rather than just how long the funding will last you (e.g. 18-24 months)
• Explain what you will accomplish with the investor's dollars as the headline, and then support that with how long you think it will take and why this capital is the right amount to get there

[03] Founder/Team Bios

1. What issues does the author see with founder/team bios that feel "deceptive"?

• Highlighting impressive-sounding credentials like Google, Harvard, etc. that turn out to be exaggerated (e.g. a summer internship, a short executive education course)
• Trying to "draft off the social proof" of these credentials, rather than highlighting the founders' real lived experiences
• This can signal a lack of self-confidence and get you the "wrong" investors who care more about status than substance

The author advises being authentic about your background, as this will help build mutual understanding and trust with the right investors.