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  • Jeanel Carlson

Startup Founders: 3 Reasons Why Your Investor Pitch Fails

Updated: Aug 6

Even with a promising business idea, many startups struggle to communicate their vision clearly. If you struggle with this as a tech startup founder, it is VERY hard to fundraise – particularly if you’re conducting cold outreach. But it's not impossible! However, you must build a compelling pitch deck for doors to open.

If you aren't finding traction, there are a few problems we see startup founders face with their investor pitch time and time again.


Here are the top three reasons why investors might not understand your investor pitch deck (and how to address them):


Startup founders investor pitches can make or break your busines
If investors don't get your pitch in the first 2 minutes, you've likely missed your opportunity window.

1. Your messages are too complex and are confusing your audience.


Poor communication sabotages your chances from the outset. Too much jargon, complexity, or irrelevant technical details dilutes the messages you’re sharing. This is particularly problematic for investors who must grasp your key points in a few minutes of deck skimming — aren't likely to give you anymore time.

How to fix it:

  • Simplify your language: Use clear, concise, and straightforward language. Avoid industry jargon and technical terms that might confuse your audience.

  • Focus on the essentials: Highlight the most critical aspects of your business — what problem you’re solving, how you’re solving it, and why it matters. Leave out unnecessary details that can clutter your message. Only include technical details that address common questions you receive, or some critical or disruptive element of your business.

  • Use design and visuals effectively: Support your points with clear, engaging visuals such as charts, graphs, and relevant pictures. Everything in your deck communicates something and if the visual hierarchy is off, or the page is cluttered — impact is lost. Visuals convey complex information more simply and memorably if you use them strategically. If your images don’t add context or emotion to your story, ditch them.


Example: Instead of a slide filled with bulleted text explaining your product, use a diagram to illustrate how your solution works and a brief, clear statement about its impact. Beelinguapp uses existing companies to help offer additional context and UX imagery to clarify its product’s functionality.


2. You lack a compelling startup founder story or "why" behind your business.


VC investors are not just looking for facts and figures; they are looking for a compelling narrative that explains why your startup exists, fits well in their portfolio, and why it will succeed. Without storytelling, your pitch is dry and unmemorable. A pitch story works for the same reasons a strong brand story works: it is the ethos and emotion solidifying the substance. While impressive financials and a no-brainer idea are the substance of your pitch, storytelling, and an authentic personal brand, reinforce that you are the RIGHT choice for investors who are already sold — it can also sway those on the fence.


How to fix it:

  • Start with a powerful hook: Begin your pitch with a powerful opening that grabs attention. This could be a surprising statistic about your market, a compelling personal story, or a clear statement of the “no-brainer” problem you’re solving.

  • Build a narrative arc: Structure your pitch like a story with a beginning, middle, and end. Introduce the problem, present your solution, and conclude with your vision for the future.

  • Make it personal: Share your passion and personal connection to the problem you’re solving. Your story is a way to prove founder-market fit — why you are the best person to lead this company. Personal brand is essential for investors, because when your business is small they are investing in you, not just your business. Personalization makes your pitch more relatable, engaging, and helps investors trust that you have what it takes to succeed.


Example: Begin your pitch with a highly relevant story. Abortion access startup HeyJane ties its statistics to emotionally powerful language and the challenges faced by customers and recent current events.


3. Your fundamentals don't prove you're a "no-brainer" investment.


Financial projections and a clear business model are critical components of a pitch deck, but they are often presented in ways that are either too vague or overly complex. Investors need to see the right info they're looking for at the right time, positioned in the right way. There's an art to adding detail when you need it, and eliminating it where you don't.


How to fix it:

  • Provide clear financial projections: Include an at-a-glance that offers essential information for your financials, and keep an appendix that holds detailed and realistic financial forecasts. Show key metrics like revenue, expenses, profit margins, and break-even points.

  • Explain your business model: Clearly outline how your startup plans to make money. Include information about pricing, revenue streams, and sales strategies.

  • Outline key assumptions and milestones: Indicate the assumptions behind your financial projections and the key milestones you need to hit to achieve them. Make sure to also recognize that investors are curious about different elements of your projections depending upon what stage of funding you are in.

  • Anticipate questions: If you frequently receive the same questions, consider adjusting content to ensure those questions are answered. You can also add an FAQ or Appendix to help address specific questions that are asked about your business or financials.


Example: Use charts for detailed data but highlight key takeaways. Customer communications hub Front outlines their product roadmap, revenue projections and all necessary financials in clear, easily digestible charts, with key takeaways highlighted. Practice with friends or family outside your industry. If they don't understand you, investors won't take the time to understand either.


👉Get our free marketing ebook to learn 10 branding strategies that help 

early-stage startups double their marketing’s impact on profits, or read the blog


Ready to build a brand story that lands with your customers? OakBloom Marketing is a strategic marketing agency that specializes in helping startups craft magnetic brands and stories that influence. San Francisco Bay Area-based, OakBloom Marketing services startups in the Bay Area and throughout the U.S. learn more.

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