Pitch Deck Teardown Recaps

The business model

The business model slide is a critical component of a pitch deck because it is how you will convince investors that your business model will work and will generate a profitable return on investment (ROI). Think of it as a snapshot of your company’s essence. 

The slide should feature a clear visual representation of your company’s revenue streams and its value in the market—blending both compelling storytelling and data. Flowcharts and pricing charts are often used to define how the company will generate revenue in simple terms. 

During a pitch deck teardown, investment professionals will examine the business model section closely to understand the company's viability and scalability. They will typically analyze revenue streams, customer segments, value proposition, cost structure, distribution channels, key resources and partnerships, and overall growth potential. 

The startups

The panelists reviewed four sections of the pitch decks from four different companies: Allps AI, Map Hunter, Ulama, and Soap Health. They started with an analysis of the business model slides in each deck, and then each provided a summary of their expert advice. 

Allps AI 

Allps AI is an AI-powered platform for IT hiring and talent acquisition. 

It was noted that the picture in the middle of the slide was just decoration, and not needed, as it wasn’t crucial to the overall communication. Images can be distracting, especially if they are too busy and take away from the messaging. 

The panelists suggested that the slide be cleaned up because it was too visually complex, and needed to be stripped down to its essence. They recommended that the founder instead discuss the core basics of the business model first, and then later expand on the details. 

Additionally, it was mentioned that many founders who aren't located in the US are talking to US audiences. This makes it unclear as to whether they’re planning on raising funds from US VCs or not. Differentiating those numbers with periods and commas would help with clarification. In reviewing this slide, there was a unanimous question across the board as to how the company planned to achieve its financial goals. 

Map Hunter

Map Hunter is a travel app that allows tourists to access customizable content from anywhere. 

The feedback on this slide was that it was too complex. It was difficult to follow the track and to understand how the company was going to go to market. The experts also said that the business model was a little convoluted, and going after so many customers simultaneously would be challenging. 

The recommendation was to focus on one segment at a time, such as self-serve B2B, otherwise, the VCs will think that the company is trying to accomplish too much at once. Additionally, it was advised to eliminate the mention of owned data, because that information will only be valuable once the company has gained more success down the line.

It was also suggested to nix the subheadings under “customer products,” as they were confusing. The experts said it was a red flag to show both a B2B and a B2C go-to-market approach because it makes it seem like the company doesn’t know who its customers are. The advice was to hone in on one customer or one segment first. 

Ulama

Ulama is a platform that automates the approval of construction projects and permit applications. 

The team pointed out that the Ulama slide was clean and simple, with visuals that weren’t too distracting. It was clear that the company was talking about businesses.

Additionally, the feedback was that talking about government agencies can be complicated, but they did a great job breaking this down on the slide. The team also liked that pricing was eliminated from this section, as they didn’t feel it was needed.

The panelists noted that the company clearly highlighted its three tiers — essentials, pro, and enterprise — as investors will expect that. Overall, this slide had the least amount of words, and according to the experts, made it the most successful. 

It was reiterated that less is more, and this slide was unanimously voted the favorite among the panelists.

Soap Health

Soap Health is an AI-powered primary care provider. 

The experts felt that the go-to-market and the business model should be separate slides. The business model slide should clearly state how the company plans to make money, including the pricing. The go-to-market slide should be more concise and less wordy, as too much text makes it difficult to hone in on key market activity. It was advised to share a more narrow focus of where you plan to concentrate your efforts and how you will convert your target customers. 

The panelists agreed that this slide was difficult to follow, making it hard to determine what the company wanted to achieve. It wasn’t clear as to how each go-to-market item was going to monetize the business. It was also suggested to present a circular image of the four go-to-market items instead of side by side since they all work together. 

The importance of simplicity 

The overarching message gained from the panelists’ feedback was that there needed to be a greater focus on the formatting of the pitch decks. Since most investors only spend a few minutes per slide, there should be just headlines, not headers—making it easy to understand who the company is and what they are doing. 

The goal of a pitch deck is to first peak someone’s interest so they will want to learn more and set up a meeting. Investors don’t need to know every single detail about the business model before having a conversation. There will be plenty of time to dig deeper during future meetings. 

Your pitch deck should also include clear details on how you plan to make money, what the percentage cuts are (if applicable), and the projected transaction volume. 

When crafting an initial pitch deck, and particularly, the business model, the advice from the experts is crystal clear — keep it simple!

Follow us to the next post in the series where we’ll summarize the expert’s feedback on traction. 

Traction

A traction slide in a pitch deck should present a compelling growth story for your startup and showcase your success to date. This slide shows investors that your business idea has market demand and should include information such as current sales, pre-orders, data from a pilot study, partnerships, and endorsements. The layout should be concise and include relevant metrics and graphs. 

During our pitch deck teardown, the panelists spent a fair amount of time analyzing this section. The host, Justin Izzo from DocSend, said that data shows 25-30% more VC time has been spent on this section of the deck over the last year, specifically for early-stage companies seeking pre-seed and seed funding. 

According to global venture capital consulting agency Waveup, the following are some of the best indicators to include on your traction slide: 

• Total revenue, including monthly recurring revenue (MRR) and annual recurring revenue (ARR)
• The number of active customers and users you have
• Your net promoter score (NPS), which gauges customer loyalty and satisfaction
• Engagement and retention rates
• Your average revenue per account (ARPA)

The startups

The panelists reviewed four sections of the pitch decks from four different companies: Alps AI, Map Hunter, Ulama, and Soap Health. The second section the panelists analyzed was the traction slides in each deck, and then each provided a summary of their expert advice.

Allps AI 

Allps AI is an AI-powered platform for IT hiring and talent acquisition. 

In analyzing this slide, the experts said that the timeline looked really good. In regards to formatting, it was suggested to separate the past, present, and future—honing in on what you’ve done thus far, where you are currently, and what you project for the future, including how you are going to meet your goals. 

It was recommended to put dotted lines around the present and the future, and maybe even to put the present section in a box, to make more of a differentiation—so the content on the slide doesn’t seem so flat. That way, investors will have a better idea of where you are today and where you are headed.

Map Hunter

Map Hunter is a travel app that allows tourists to access customizable content from anywhere. 

The experts liked the timeline on this slide and said they did a nice job showing the past, present, and future. They mentioned that it’s important to show the number of current users today, not just the projected number, because that’s important to investors. 

The feedback on the lower half of the slide for go-to-market was that it was a little confusing, as the value proposition seems to switch over time.

Ulama

Ulama is a platform that automates the approval of construction projects and permit applications. 

According to the experts, this slide didn’t provide enough details on the traction. If there isn’t a lot of traction currently, then the suggestion is to focus more on their future plans and how they plan to get product-market fit (PMF)—being in a good market with a product that can satisfy that market.

It was recommended that they supply additional details on their prototype process and where they are today with their current customer, versus just mentioning it in one sentence on this slide.

Soap Health

Soap Health is an AI-powered primary care provider. 

The experts unanimously liked this slide best because it features great logos and also shows revenue and projections. As feedback, it was suggested that they make it clearer who is a customer and who is a partner—many companies blend both logos. 

They also said that it’s a good idea to mention how many current customers are associated with the revenue on the slide, and how many customers they project will reach the $1 million ARR by the end of the year. 

When you think about presenting your traction, revenue should be at the forefront of the slide. You want an investor to be able to quickly glance and clearly understand whether or not you currently have revenue. If so, then you should provide details such as how many customers are paying you. 

If you don't currently have revenue, then you should highlight whether or not you have pilot customers or design partners, for example. If not, then you should share your pipeline of people and any interesting logos that will visually reinforce that.

Adding too much information on a traction slide can make it difficult for investors to understand where a founder is in their journey. At the pre-seed stage, in particular, the advice from the experts is to demonstrate to an investor that you have a working “MVP” and a validation of interest from customers. 

You want to prove that you have meaningful traction early on by showing signs of strong engagement and active users of the product. It was suggested that it might be better to highlight month-over-month, quarter-over-quarter, and year-over-year metrics here. This slide could be improved by having a KPI metric that speaks more to the growth trajectory of your traction.

Cash is the king of traction

Many investors revere the traction slide as the most important slide in your pitch deck, especially when you have revenue.

The experts agreed that, overall, Soap Health had the strongest traction slide. As with the business model, simplicity is always best—making this slide the unanimous favorite. 

Alps AI and Map Hunter’s slides seemed more like a road map than traction. Traction is what you’ve already achieved, so this slide should show your momentum thus far, whereas a road map looks more into the future. They can be blended somewhat, but the feedback shared was that backward-looking traction is more important at this stage. 

Many investors revere the traction slide as the most important slide in your pitch deck, especially when you have revenue. Therefore, your quantitative KPI metrics should be bold, front and center. 

One of the panelists stated that “cash is the king of traction.” Revenue numbers should be very prominent on this slide, especially if there has been strong and consistent growth. 

Follow us to the next post in the series where we’ll summarize the expert’s feedback on market size.

Market size 

The market size slide in a pitch deck, also known as the TAM (Total Addressable Market) slide, represents the total potential revenue or sales for a product or service within the target market segment. This is the slide that investors use as a make-or-break decision. 

Market size is important because investors want to see that your startup is scalable and that the market opportunity is enough for competition. You should be realistic when creating this slide and back up your figures with sources. Flowcharts and diagrams are often used, as they are a great way to show statistics. 

This slide is sometimes considered controversial because market size at the pitch stage is just an estimation. If you can confidently show there’s a high probability of you making money, then it will be much easier to secure an investment.

Showing viability and growth

The market size slide is known for being one of the top five sections of a pitch deck with the longest viewing times. Being able to clearly and succinctly communicate the potential of your business is key. 

This is also an opportunity to showcase your research skills, demonstrate that you understand your target market, and make a compelling case for why your business is poised for success.  

According to the experts, this slide should be less about the numbers (unless the market is very established), and more about how you think of your user base and customer. Founders should highlight what the value add is and how they are going to penetrate the market. 

According to the experts, you can be the least creative with the market size slide in your pitch deck. A classic breakdown showing TAM, SAM, and SOM is preferred.

• TAM (Total Addressable Market) represents the total global marke for your product or service. 
• SAM (Serviceable Addressable Market) focuses on the portion of the market you can acquire based on your business model.
• SOM (Serviceable Obtainable Market) refers to the portion of SAM that your business can realistically capture

Allps AI

The feedback on Allps AI’s slide was that the setup was a little strange, showing North America, Europe, and DACH (Germany, Austria, and Switzerland). The experts said they would prefer a more traditional TAM layout that cited sources.

Map Hunter

The experts felt the graphics didn’t match up well with the metrics above on this slide—making the numbers confusing. The “Why Now” section should cite CAGR (compound annual growth rate), and include quantitative metrics to back up their claims. They also said to avoid highlighting a one-time event such as the World Cup as a market driver. 

The layout of this slide seemed a little “salesy”, and it was recommended to make the verbiage more objective and pointed. Additional feedback included mentioning how they planned to capture the market potential, i.e. by providing examples such as the percentage booking fee of the travel market. 

Ulama

This slide was revered as the best slide among all the experts because they cited their sources, and it was laid out simply, making it easily digestible. There were no assumptions to be made or math to be done, which is preferable for investors. Ironically, Ulama has the smallest market among the startups.

Soap Health

As with the previous slides, the underlying feedback was that the sources should be cited because there are some unstated assumptions. The experts said the SAM was a little confusing, specifically the terminology around replacing all US healthcare premiums. It wasn’t clear whether they were referring to premiums, deductibles, or co-pays—to move toward full telehealth. 

How to address your market

Focusing on your total addressable market is a great way to demonstrate tailwinds in an industry (positive factors that can help a company’s growth), and share the excitement around that. The experts said that when trying to understand a market, they care more about the bottoms-up sizing. 

It’s also important to have a pulse on how investors perceive you and the business because they’ll be calculating whether your company will be able to return their funds. 

When creating your market size slide, place more emphasis on the market opportunity versus how big you think the business can get. Your primary focus should be to demonstrate that you understand your specific customer. 

The competition slide in a pitch deck serves as a conversation starter and shows investors what distinguishes you from your competitors. You should identify your competitors, highlight their strengths, and share why you have an edge over them. 

Data visualization is often used on this slide to help translate numerical data into a visual representation—making it easier to process. Examples include charts, graphs, maps, and comparison tables. 

Some of the essential components to include are:

• A list of your competitors (both direct and indirect) 
• Your Unique Selling Propositions (USP) 
• Who your target audience is, and their wants and needs
• How your product or service can solve your customers’ problems

Allps AI

The experts liked this slide because it highlights both the features and the competitors, not just the company in the top right corner. They also said Allps AI did a good job showing that they have a pulse on their competitors. 

Map Hunter

They suggested cutting out JobCloud from the slide since they didn’t check any of the boxes. If a competitor’s metrics don’t apply, or they aren’t in direct competition with you, then they shouldn't be included.

The feedback on this slide was that it was a little confusing. It was difficult to understand how Map Hunter was going to compete with YouTube, and what their value proposition was. They highlighted two metrics on generic and personalized integrations, but it was difficult to differentiate because the point goes across.

Similar to the feedback given on the Alps AI slide, the experts recommended only highlighting the most direct competitor(s) that you’re actually in competition with. Map Hunter mentioned that the only company close to their unique value proposition (UVP) was Airbnb, which seemed inaccurate to the experts. 

The other competitors were labeled under different categories, such as guide booking and audio, which made it seem like those companies may not be the most direct competitors.

Ulama

Ulama also chose two different features to differentiate on this slide. The experts said they discount the validity when they see just one logo in the upper right corner. The recommendation is to be more realistic, especially as a newer company—because other similar companies are entering the market. 

Competition in the market is a good signifier that it’s a large market that many companies are going after. The advice given was not to shy away from mentioning newcomers in general.

Soap Health

The experts liked the feature comparison on this slide but said it was a little too crowded. The feedback was to use the title and real estate to add more color and better communicate their message. This slide should show how your company is unique and stands out from the competition. 

It was also mentioned that nobody else was listed in their quadrant—making it seem like they were moving farther away from the competitors while in product development. That may stand out as a red flag to investors because it’s not super informative. 

It was recommended that they remove ADA and Symptomate on this slide because if the metrics listed are the most important for competition, these companies don’t meet any of them. 

In regards to the choices made with the feature sets on this slide, the experts didn’t like using the terminology of lowest cost because they felt the focus should be on the highest cost—showing the best value and demand. 

Additional feedback was that the voice-based digital human patient interview made it seem like an AI robot was interviewing a human. This was labeled as a red flag because the experts weren’t sure this was a feature that patients would want.

The panelists felt that Soap Health did a good job with the color coding. When thinking about deck design, they recommended aligning Xs and check marks—making it more easily glanceable. They also said putting some additional color behind Soap Health would help remind the audience who they are and help them stand out.

Advice for founders

The experts collectively weighed in on competition slides and said that most companies put themselves in the top right corner of the graph, and check every box of their differentiation measures. This isn’t necessarily useful because it doesn’t calculate the risks associated with the business. 

They went on to say that many of the best founders are very straightforward during early conversations. They are honest about the risks that they see in their business, the challenges they anticipate, how they see themselves playing in this competitive set, and how they're thinking through mitigating those risks.

Founders should be prepared to share where their business is today and how they’re going to solve any challenges. Competition slides should educate your investors on who the other players are in the market, and focus on both legacy and newcomers. They should also educate the investor on your value, differentiation, key features, and the value drivers of your company.

What investors want to see

The experts agreed that the most important part of the competition slide is showing that you’re listening to your direct competitors. 

While you want to show how your company is unique, you also want to ensure that you’re on the right track. If no one else is doing something you’re doing, that could be a really good thing, but it could also be a bad thing. Thus, sharing a feature only you offer, doesn’t necessarily mean it's valuable or a good idea. 

Lastly, the competition slide is a great way to communicate that you understand the risks involved with your product and how it’s relative to other products on the market. 

Missed any of our previous pitch deck teardown posts? Visit the HubSpot for Startups Resources page for recaps of the business model, traction, and market size slides.