SlideMagic Blog

There is no better person to get VC pitch advice from then the people who sit at the receiving end of your presentation. Here are startup VC pitch suggestions from a few well known people in the industry. Click on the image to see what to they have to say.

Mark Suster, Upfront Ventures

Dave McGlure, 500 Startups

Paul Graham, Y Combinator

David Rose, angel investor

Reid Hoffman, LinkedIn

Vinod Khosla, Khosla Ventures

Art: Frans Hals, Regents of the St. Elizabeth’s Hospital in Haarlem, 1641

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“Big data” is fashionable right now and many startup pitches emphasise how if an investor wants to put dollars in big data, this company is the best place to do it. Visualisations look similar: a big spaghetti of lines enters a box and out comes a super insight. The traditional IT-way of visualising the world: everything fits in an architecture diagram.

The problem: all these decks look and sound the same.

Architecture diagrams that describe the technology in a top down view are not always the best tools to pitch business ideas. The other approach is bottom up, story, and case example driven. Take one specific insight, and work your way through the system and show how it was produced. Super detailed, super specific, and super real.

Once the audience is convinced that this one microscopic case example works/is brilliant, they will have no problem believing that it works for the other 5 billion possible use cases. And in the process, they are convinced that you did not just slap the label “big data” on your pitch because it is the latest fashion.

Art: Jackson Pollock, Autumn Rhythm, 1950, image by Matthew Mendoza

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There are so many wonderful things to say about your idea. all the problems it solves, all the things it can do, all the thought you have put in to make it perfect.

In the middle of the “and also, and also, and also, and also” the audience gets bored and wonders what it actually boils down to. In 99% of pitches I have designed, there is one original idea that is more important than all the other features.

Design your presentation around this. When describing the problem (always easier to do than selling the solution), focus on the most important issue. When presenting the solution, hammer in that one crucial innovation. After that is done, you can mention other elements of your story as a “by the way”. But, watch out not to get carried away here.

Prioritising that one big idea out of all your smaller ideas is not a matter of diluting things with generic terms: “we deliver ROI”. It should be highly specific.

I often get this issue in client discussions. So we start out, and in that first meeting, it often turns out that the client can explain it in 5 to 10 minutes. The difference? Me impolitely interrupting monologues where I got the point already, and asking questions inviting conversation about issues that are not covered.

How to do it without the help of a probing presentation designer? Take a radical approach to how much time you spend on each element of your story. If a certain section is incredibly important, but at the same time totally obvious, old news, and well known, cut it to the minimum. On the other hand there might be a tiny detail that is completely counter intuitive and merits a total 5 minute deep dive.

You are not writing an essay about your brilliant idea, you are racing against the clock to explain your idea in 5-10 minutes.

I admit that this is easier to do in 1-1 conversations than in formal presentations. Test your story in 1-1 conversations with smart people before pitching it to larger audiences.

Some technology solutions appear to be magic, almost too good to be true. Complicated algorithms that are hard to apprehend for example. Your audience might not believe you, because they cannot understand it, you are trying to sell snake oil. How to pitch magic?

• Do not start of your audience on the wrong foot by claiming yourself that it is magic. It does magical things, but it is not snake oil, everything is science and engineering.

• Use two stories:

• One: a powerful analogy/story that explains the fundamental approach your system takes. This is to explain the concept.

• Two: a super detailed, super in-depth deep dive on one aspect of your algorithm, show how it works on one micro example. This is to show that it is tangible and real

Many people try to make story 1.5: an analogy that is too forced and complicated to understand quickly, and a technology explanation that is too vague that it leaves people wondering whether they are looking at a magician instead of an engineer.

Strangely enough, it is a visual analogy that might drive you to story 1.5. A simpler, verbal story might do a better job here.

In conservative industry sectors such as finance, the use of images in presentation is not very common. When I put on in, the immediate reaction is one of: that is not how things work here. But usually, over time, people get somehow used to the image and realise that even serious presentations do not have to be boring.

This slide was created with  presentation design app SlideMagic for presentations that mean business

Accounting regulation and business reality can sometimes be far apart. A client could show incredible revenue growth because it was forced to recognise revenues early because of accounting regulations. At first sight, it looks great, but as soon as an analyst tries to dig in only a centimeter deeper (“Why does the cash flow not match?”) the story starts to unravel.

Yes, you can explain them how undo the accounting policies, yes a good analyst will probably ignore the profit and loss account (which is merely a tool to set tax rates), and focus on the cash flow. But, you left an impression of hiding the truth. And that leaves a bitter after taste with investors even if the company is actually doing very well (even without the help of obscure accounting policies).

You might have to come clean up front.

As long as the content is right in an investor presentation, you probably will get away for poor graphics design. Even if you did not manage to draw that banana perfectly, the audience will get the point. It even shows that you are a prudent CEO of an early-stage company not to waste money on expensive graphics designers*.

That changes with sales presentations. If you show up with poorly designed slides, you will lose credibility instantly, even if the content, visual concepts, and story flow are great. You come across as an immature, brand new startup (which you actually are), and that makes people scared to buy from you.

• Note of a professional presentation designer: getting the slides to look pretty from a graphics perspective is not the hard part, it is hard to get the content and concepts right.

When you ask a VC what to include in your pitch, she will instantly produce a check list with menu items. But taking this check list and use its components as the chart headings for your pitch deck will make a boring story. Grocery shopping lists have not won Pulitzer prices (yet).

Craft a story that will excite potential investors, then go back to the check list to see whether you covered everything. Even if the she says that the only thing that matters is the check list. VCs are human and want to be surprised, entertained, and intrigued.

Many investors will scroll rapidly with the page down key through a presentation that is attached to an email. They will skip the cover letter in the email body (too much text), they will skip the dense summary page one of the presentation (too much text) and will continue to scroll down your slides, stopping at pictures (newspaper readers read the caption of a photo before the headline of the article).

I have seen horribly looking presentations that pass the PGDN test. When scrolling rapidly through the pages you actually get what the author wants to say.

I have seen very sophisticated, professional-looking presentations that completely fail the PGDN test (many were written by consulting firms and investment banks).

To your own PGDN test before cold-emailing your pitch.