advice from Due Diligence of 50+ Pitch Decks

Advice for Aligning Product, Technology and AI in your Pitch Deck Story

Post was originally published in July 2022, and updated in October + December 2022, March -- May 2023

I help VC firms evaluate alignment between how SaaS (software-a-a-service) or HaaS (hardware-as-a-service) start-ups solve their customers’ pain points with their products, align incentives on product and pricing, and how they use technology and (where applicable) AI to do so.

I review about 200+ decks/year; investors see 1000+ (!). What stands out are those that are great and those that aren't. To get your pitch decks to stand out (for good!), here's what I look for as I review each pitch deck.

Working Backwards from End Goals of Pitch Deck

First, we need to understand the goal of a pitch deck. It won't get you a check, but it may get you a meeting if you can demonstrate why we need this now -- and that this is a (relatively) low-risk investment.

Bonus: As a non-investor, especially when reviewing a D2C brand, by the time I'm done reviewing your pitch deck, I'd love to have you leave me wondering (and answering) one thing -- "where can I buy this now?!?"

Due diligence is one such meeting, where the end goal may be either get you to the next meeting, get you to an intro, to get you to the next due diligence meeting, etc. Before I start, I find out what the (high-level) end goal is of due diligence, and work backward from there.

One mistake I see many founders make is assuming that a pitch will get you that check, when in reality, it may get you to an introduction or the next meeting. To help you prepare for the 8 fundraising steps (or stages), please see this blog post for advice.

Raise

Why are you raising money? How will the raise help you reach the end goal of a scalable product?
1. - Cat Middleton in an interview for the "Daily Bolster" podcast puts it another way: "Do you have a clear vision of the future you're building towards?"
What are the steps this raise will help you achieve, to get you closer to the end goal? Connect the dots for me.
Does the amount of the raise accurately reflect what you’re trying to accomplish, to get you to the end goal – or next milestone/raise/exit?

Product

Does the product solve 1+ much-needed, highly valued (out of 30+) customer pain points?
Do the product and pricing align incentives between the start-up and its customers?
Does it tie into the current customer habit/workflow? Or (not recommended) will customers be expected to overhaul how they currently do things to solve their problem(s)?
1. - Can you walk me through (at a very high level), how the product ties into the current customer's habits and solves their pain point (end-to-end)?
Is the scope manageable, focusing on one product/feature at a time?
Do I have enough information to agree – or disagree – with you? Or will I ask you for more information to make a more informed decision?
Who are your competitors (on a national and global scale) and how are you different?
1. - For example: if you're a smoothie-making start-up, I'd argue that fresh/frozen fruit from your grocery store are also an alternative to your product. What sets you apart?
  - Even if you think you have no direct competitors, what is the workflow of how your customers are solving this pain point now? This workflow (even if it takes 3 vendors to do so) is your competition. How can you make it more efficient?

Technology and Infrastructure

Is the product scalable, such that 2 and 20 fee structure for VC compensation and ROI on investment makes sense for it?
If technology is core to the business, is there a technical (co)founder/employee (even if they're part-time)?
If you’re showing me an architecture diagram of your future tech stack (it happens!) – are these the right tools for the job?
If there’s existing software/hardware infrastructure that you call out, do I have enough information to agree – or disagree – with you? Or will I be asking you for more information to make a more informed decision?

Analytics/AI

Is it clear how data will be accessed or created?
Is the analytics/AI appropriate for the stage of the product – and feasible, or is the claim to develop state-of-the-art that doesn’t exist yet with the next raise?
1. - Please see my (opinionated) blog posts on the Biggest AI/ML mistakes made by startups and What should (not) be your AI roadmap? (or) Why You Don't Need AI in your SaaS MVP for more details.
How will AI be used to help the company scale?
Will this AI offering be an added feature you charge for, separately? or is it part of the core product bundle?
If you are integrating with ChatGPT, how are you using it to create additional value for your customers? How are you mitigating the risk of hallucinations that may have an adverse and material effect on your customers?

Parting Advice

Connect the dots for me on "why you, why now", so that by the end of the pitch deck, you've built credibility and I have no doubt you can execute on what you promised. And the audience is left feeling -- I need to be a part of this, now!
Are there any objections you keep hearing (what seems like) repeatedly? Call them out and address how you're already solving them (if not in the main part of the deck, then in the Appendix). This will go a long way to continue to build credibility and rapport.
If your answers to the questions raised here are unclear, I advise that founders address these points before recommending them to the next step.
Don't include full sentences in the slide deck.
Is the deck in layman's terms? Or do we need a background in your field to understand the pitch?
I hope you're not requiring an NDA for people to access the pitch deck.
To avoid more pitch deck mistakes that others make, consider reading my other blog post on the topic.

Now you know what you need to improve; good luck!

You're not getting a "yes" from investors. Let's rescue your pitch deck! Please schedule a (flat-fee) session with me.

Good luck!