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Category VC/investor pitch

·Investor presentation

And also, and also, and also

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.

·Investor presentation

I can only explain it in 45 minutes...

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.

·Investor presentation

How to explain magic

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.

·Investor presentation

Getting used to the image

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

·Investor presentation

Confusing accounting

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.

·Investor presentation

Sales vs. investor presentations

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.
·Investor presentation

Check list vs. stories

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.

·Investor presentation

The PGDN test

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.

·Investor presentation

The bar is rising

The average investor pitch deck gets better and better (bad news for presentation designers like me). SlideShare, video streams of startup competitions, TED videos, all create examples of good presentations that people can copy.

Five years ago, version 1 would be a horribly looking bullet point document with standard Microsoft Office fonts/colours, full of small low resolution images scraped from Google with their aspect ratios distorted, that is changing.

Many startups have some sort of designer involved, she gets pulled of the web site work to give the slide deck a much needed make over. The result: decent looking slides, decent colour scheme, decent story flow, still lots of bullet point slides, but at least they are written properly, newspaper heading style.

How to push it one more level up?

Focus on the content, not so much on the local and feel which is already pretty OK. Here is a check list of possible mistakes:

  • Think about where to focus your time/slides. Many of these decent presentations spend too much time stating the obvious. Instead go one level deeper: everyone seems to understand the problem, but why is it that in 2014 we sill have not found a solution for it?
  • Add more substance to your competitive differentiation. A simple 2x2 matrix with generic sounding axes is not always enough. Why are these other companies doing something different while it sounds like they do exactly the same thing you do? And why do they do it differently? Very rarely, this will because of stupidity, there is probably another reason these companies focus on a different solution for a different customer segment.
  • Even if your bullet points are short and well-written, remember that as soon as you start listing more than 3-5 benefits/differentiators, the audience will perceive this as no benefits/differentiators. Bla, bla, bla
Continue reading →
·Investor presentation

Demo vs introduction

A live app demo is not the same as an introduction of what your app does. Getting the technology to work, logging in as a dummy user, creating some dummy files, showing some dummy output, changing some settings, quickly going back to the management console, before switching to the user screen. All this shows that the app is real, it exists, the beautiful design, the fast response time, the powerful algorithms. But it is step 2 in the introduction, the audience is missing step 1, the overall context of what problem the app solves, and what it actually does. Time to throw in some good old slides that can get these messages across faster/better than a live demo. Then, fire up the tablet.