Did you know a strong pitch deck makes a startup twice as likely to get funded? Yet, creating that perfect pitch deck feels as challenging as building the business itself. Some say 80% of a founder's job is to work on the statistics for their pitch deck.
But what makes yours stand out from the countless others? It's about telling a gripping story, showing how you solve real problems, and using visuals – after all, 90% of what our brain picks up is visual.
So, what is a pitch deck? It's not just a presentation; it's your story, backed by solid data. Here we’ll discuss some interesting and must-know statistics and facts related to startup pitch decks.
22 Interesting Statistics and Facts About Startup Pitch Deck
Following are the 21 vital facts about pitch decks. These insights will enhance your perspective, deepen your understanding, and guide your startup to fundraising success through a killer pitch deck:
1. On average over 1,000 pitch decks are created worldwide daily.
Every day, over 1,000 new pitch decks pop up worldwide. Think about it: a typical venture capital firm sifts through 500 to 1,000 of these annually. The numbers shift based on the firm's size and its niche.
With such fierce competition, it's crucial to make your deck stand out. Remember, it's not just about a great deck, but also finding the right investors to show it to.
2. Around 89% of VCs expect a pitch deck during fundraising.
For startups eyeing funds, a pitch deck is no longer optional. Around 89% of venture capitalists anticipate one during fundraising. This isn't just a trend; a survey by the National Venture Capital Association confirms it.
So, if you're a budding startup founder, having a stellar pitch deck isn't just good practice—it's expected.
3. Around 10-15 slides pitch deck is perfect for Early Startups.
For early startups, a pitch deck of 10-15 slides hits the sweet spot. DocSend's survey reveals decks with 11-20 slides are 43% more successful in raising funds. Guy Kawasaki agrees, suggesting a golden number of 10 slides.
Going beyond can raise investor's eyebrows. While there are exceptions for later-stage startups, brevity remains key. Too lengthy? You might be waving a red flag.
4. Only 1% of pitch decks succeed in acquiring funds.
Fundraising is becoming tougher every year. Only 1% of pitch decks clinch the funds. While investors glance at about 10% of decks, a mere fraction, less than 1%, get the green light.
In the US, just 0.91% of startups win over angel investors. Want to escape the dreaded 99% of rejected decks? Your pitch deck needs to be more than good—it needs to be unforgettable.
5. An investor spends only 3 minutes and 44 seconds on a Pitch Deck.
Time is of the essence when presenting to investors. On average, they'll spend a mere 3 minutes and 44 seconds on your pitch deck. That's less time than brewing a cup of coffee! Studies, including one from Harvard Business School, confirm this brisk pace.
With countless decks to review, every second counts. The takeaway? Make your deck concise, visually engaging, and unforgettable. After all, first impressions matter.
6. Successful startup founders spend an average of 18 hours on their pitch.
Creating the perfect pitch isn't a quick task. Harvard Business Review reveals that triumphant startup founders invest an average of 18 hours fine-tuning their pitch. Surprisingly, 60% even dedicate over 20 hours!
It's not just about throwing together slides; it's about precision, clarity, authentic stats and data, and passion. So, if you're aiming to impress, remember: that quality takes time.
7. Pitch decks with visuals are 43% more persuasive than those without.
A picture is worth a thousand words, especially in pitch decks. Research from the University of Minnesota and 3M Corporation reveals that decks with visuals pack a punch, being 43% more persuasive. It's not just about looking pretty; it's about clarity and impact.
While your message is king, presenting it with the right visuals boosts its chances of success. So, when crafting your deck, choose visuals wisely and make every image count.
8. All text in a pitch deck should be at least 30 points in font size.
Size matters in pitch decks, especially font size. Guy Kawasaki's golden 10/20/30 rule emphasizes a minimum 30-point font. Why? It ensures clarity, prevents slide overcrowding, and keeps your message succinct. Large fonts force discipline, making you prioritize key points.
Plus, they're easily readable, ensuring your audience grasps every word. So, when designing your pitch, think big with fonts, and let your message shine clearly.
9. Pitch presentation should take no longer than 20 minutes to deliver.
Time is precious, especially in pitches. Guy Kawasaki firmly believes a pitch should wrap up in 20 minutes, even if you've got an hour. Why? It leaves room for introductions, tech hiccups, and a valuable Q&A session.
Stretching beyond 20 minutes risks losing your audience's attention. So, when you're on stage, make every minute count, and aim to captivate, not elongate.
10. Angel investors only fund around 1 out of every 400 pitches.
On average, only 1 in 400 pitches secures funding from these investors. While venture capitalists may review hundreds to a thousand decks yearly, the funding rate remains slim.
Dennis Tracz, a seasoned entrepreneur, echoes this reality. However, as your startup matures and your network expands, your chances in later VC rounds can improve significantly.
11. The average cost of a pitch deck can run from $1,500 to $50,000.
Creating a pitch deck isn't cheap. Prices range from $1,500 to a staggering $50,000. A professional design from scratch starts at $1,500, with businesses typically spending $2,000 to $4,000 for a basic deck.
Hourly rates for designers vary, from $25 to $115. Yet, consider it an investment. Even a $20,000 deck could yield a 10x return if it secures $200,000 per slide in capital. That's a small price for potentially huge gains.
12. Less than 60% of successful pitch decks include a financials slide.
While financials are crucial, only 58% of successful pitch decks include them. DocSend's analysis of 320 decks revealed a stark difference: none of the failed decks had financials. Though startups might lack existing financials, forecasting can shape the narrative.
It's not just about numbers but showcasing diligence and understanding. However, if the financial story isn't compelling, some say it's better left untold and focus on traction.
13. The Team slide is the only slide present in 100% of startup pitch decks.
The team slide is crucial in a startup pitch deck, being the only slide present in 100% of decks analyzed by DocSend. It's the backbone of any successful pitch, as investors primarily invest in the people behind the ideas and products.
A survey by Entrepreneur highlights that the team is the most important factor for investors, accounting for 23% of their evaluation criteria. This slide is your chance to showcase your team's credibility, skills, and vision.
14. Investors value market opportunity (28%) and growth (19%) in startups.
When evaluating startups, investors place significant emphasis on market opportunity and growth potential. A survey by Entrepreneur revealed that the market opportunity is the top consideration for investors, accounting for 28%.
Additionally, the potential for growth is another crucial factor, with 19% of investors prioritizing it. This underscores the importance for startups to clearly highlight their market potential and growth strategies in their pitch decks.
15. Your title slide has 7 seconds to impress; make every second count.
First impressions are pivotal, especially in pitch decks. With just 7 seconds to make an impact, your title slide is the gateway to your presentation. Research indicates that 94% of first impressions are design-driven.
An eye-catching title slide not only grabs attention but sets the tone for the entire pitch. If it falls short, you risk losing your audience from the start. Prioritize clarity and compelling design.
16. Avoid information overdose, and don't cross 20-25 words per slide.
In pitch decks, clarity is key. Adhere to the 1-6-6 rule: no more than six words per line and six bullet points per slide. Aim for a concise presentation, limiting slides to 20-25 words. Investors typically spend around 3 minutes on a deck, equating to about 600 words.
Each slide should ideally contain four bullet points with a four-word title. This approach ensures your message is delivered effectively, capturing investors' attention without overwhelming them with information.
17. 15% of investors view pitch decks on small screens.
According to the JBT Consulting report, at least 15% of investors read pitch decks on small phone screens, highlighting the need for effective design to capture attention. Moreover, 75% of investors get distracted within the first 10 minutes of a pitch.
Given that investors often review hundreds of pitch decks annually, creating a standout design is crucial. A well-designed pitch deck not only maintains investor interest but also communicates your message effectively, even on smaller screens.
18. For every $2 million raised, you’ll spend at least $1,100 on design.
Dedication to a pitch deck's design reflects a startup's seriousness about its idea. A well-designed deck leaves a positive impression on potential investors. According to research by SketchDeck, for every $2 million raised, startups invest at least $1,100 in design.
On average, businesses allocate between $2,000 to $4,000 for an initial investor pitch deck. This investment underscores the importance of visuals and design in effectively conveying a startup's vision and potential to investors.
19. VCs prioritize the why now slide more when evaluating pitch decks.
DocSend's data reveals a growing investor emphasis on the "Why Now?" slide in pitch decks. Positioned ideally between the Problem and Solution slides, it articulates the market's readiness for the startup's offering.
With 28% of investors prioritizing market opportunity, the "Why Now?" slide becomes pivotal, focusing on seizing that market potential. A well-crafted "Why Now?" slide can significantly enhance a startup's appeal to potential investors.
20. 80% of investors prefer GPT4-generated pitch deck copy.
Investors are increasingly favoring AI-generated pitch decks. A study by BIP Ventures revealed that pitch decks crafted with GPT4's assistance outperformed human-made decks. Impressively, 80% of investors found GPT4 decks convincing, doubling the 39% approval for human-created ones.
Especially in the tech sector, GPT4's influence shone, with its decks deemed 70% more persuasive. The rise of AI like GPT4 in copywriting highlights its potential to create compelling and clear pitch deck content.
21. A VC analyst sees 3,000 Decks per year But only invests in 9.
VC analysts are inundated with pitches, with an average analyst reviewing around 3,000 decks annually. Yet, they invest in a mere 9 out of these. Similarly, while a moderately active angel investment group might consider 500 pitches yearly, the odds remain slim, with only 1 in 400 securing funding.
Whether it's a new fund seeing up to 2,000 pitches or a high-profile one with up to 10,000, the competition is fierce, emphasizing the importance of a standout pitch.
22. It takes 40 investor meetings and 12 weeks to secure seed funding.
A compelling pitch deck is crucial for founders in the prolonged process of fundraising. On average, it takes presenting to 58 investors, holding 40 detailed investor meetings, and a span of over 12 weeks to successfully close a seed round, as noted by Harvard Business School professor Tom Eisenmann and Docsend.
This data underscores the pitch deck's pivotal role in capturing investor interest and emphasizes the need for meticulous preparation and refinement to stand out in the fundraising process.
Conclusion
A pitch deck is more than just slides; it's your startup's story backed by strong data. Every day, over 1,000 decks are made worldwide, but only 1% get funded. Investors spend just under 4 minutes on each deck, so it must be clear and engaging.
Visuals make a deck 43% more convincing, and the team behind the idea is vital. It's also interesting that founders often meet 58 investors over 12 weeks for a successful raise.
So, make your deck stand out, show your passion, and use solid facts to back your story.
