What I saw in deep tech pitch decks…
I’m grateful for the opportunity I have at Included VC to evaluate, assess, compose investment memos and engage in investment simulation committee of 60+ pitch decks and provide feedback. I’ve been truly impressed by the innovative technologies and solutions that these founders are developing. However, even though they have some impressive solutions, I noticed a few shortcomings in the pitch decks, particularly in the deep tech domain. As I was personally delivering feedback to the founders, I realized that it would be incredibly valuable to share my observations and feedback through a blog post.
So here are my observations and feedback:
👉 Slide Organization: Since analysts have limited time to review pitch decks, a structured approach is crucial. During my analysis, I observed that many decks lacked proper organization. It’s essential to be mindful of the number of slides to respect the time of VCs. In my personal view, it’s advisable to adhere to the following recommended slide structure: Problem, Solution, Market Size, Business Model, Competition, Go-to-Market Strategy and Milestones, Financial Projections, and Team. Yes , again, just my personal opinion because for me, it was easy to understand the deck following this structure.
👉 Costs, Financials, and Timelines: It’s a common observation that financial details, a significant factor valued by VCs, are frequently omitted. Similarly, timelines tend to be overlooked in their presentations. Often, founders forget to include a breakdown of expenses such as manufacturing costs, patent expenses, labor, and operational costs. It would also be beneficial to include revenue forecasts and a clear understanding of the burn rate.
👉 Customers : This is another crucial aspect that is frequently overlooked in deep tech pitch decks. The methods of acquiring and retaining customers are of significant importance. Additionally, highlighting user experience is vital in this context. Similarly, logistics and distribution play equally pivotal roles. Providing insights into the production plan and supplier relationships can enhance the overall presentation
👉 Problem vs. Solution: I often noticed more prioritization of the solution over the problem in many cases. It’s important to strike a balance because not all problems are easily understood by VCs. Providing a comprehensive understanding of the problem is crucial. Be sure to clearly define the problem, outline the associated pain points, identify the target audience experiencing this problem, and emphasize its significance. Furthermore, some decks tend to offer excessive explanations about the solution using scientific jargons, while others provide too little detail. Striking the right balance is essential. Also adding additional information about the outcomes of product testing can significantly enhance your pitch deck’s effectiveness.
👉 Strategy: The first key point to keep in mind is to clearly communicate your current stage and your plans for the present, immediate future, and long-term future. This provides a strong indication of a well-thought-out strategy for product development and commercialization. So it’s essential to articulate your growth, scaling, and expansion plans. This demonstrates that you have a long-term vision and a clear path for business growth. Similarly, outline your approach to forming partnerships, especially if you have potential partners in mind. This indicates your proactiveness in seeking collaborative opportunities. Don’t forget to specify your target market or region. Additionally, make sure to clarify your monetization strategy. This is the part which I often struggled to understand in the deep tech pitch decks.
👉 Founders: The founders are the backbone of deep tech pitches. Instead of pushing them to the final slide without much attention, invest some effort in highlighting the team members. Elaborate on your team’s backgrounds, emphasizing what makes your collective expertise stand out. Incorporate any pertinent track records, past entrepreneurial accomplishments, or notable achievements in the relevant sector to underscore why your team is the winning combination.
👉 Competition: Even if your product is entirely innovative, it’s crucial to acknowledge your competitive landscape. Offer a thorough assessment of your competition, both on a local and global scale. Emphasize what distinguishes you from them and articulate your strategy for securing a competitive advantage in the market.
👉 Demo: As they say, a picture is worth a thousand words, and a demo can speak for itself. If you have an impressive demo video on YouTube, use that including a direct link within the pitch deck which enables investors to swiftly grasp your product’s value . Deep-tech companies often require more time and funding to develop an initial minimum viable product, so founders might not have had the opportunity to test their product with customers before embarking on fundraising efforts. This is why having a convincing acquisition strategy and initial testing with users is critical.
👉 Regulatory Landscape: The deeptech product might require approvals from regulatory bodies like FDA and CE. It would be useful if deck can make clear about current status, clinical trials, the prototype phase, or undergoing clinical validation, and how close you are to attaining these approvals.
