The numbers don’t lie.
According to DocSend, the average pitch deck is reviewed for just three minutes. And if you think a senior VC is studying the presentation your team crafted for months as if it were a Fabergé egg — well, you might be disappointed.
Even if you are lucky enough to land a meeting, it’s more likely that a junior person went through your pitch and ran it up the chain.
“The biggest lie in venture capital is: ‘Yes, I read through your deck,’” says Evan Fisher, founder of Unicorn Capital and Minimal Capital.
“Because those words are immediately followed by, ‘ … but why don’t you run us through it from the beginning?’”
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According to Fisher, the pro forma pitch deck is a thing of the past. Instead, the founders he’s worked with who made video pitches netted two to five times as many investor meetings as people who sent traditional pitch decks.
They also received up to five times more in terms of investor commitments from the first 20 meetings.
“Even if the only benefit was that other investment committee members heard the story direct from the founder, that alone would make your video pitch worth it,” says Fisher.
Thanks very much for reading Extra Crunch this week!
Walter Thompson
Senior Editor, ProWellTech
@yourprotagonist
Nothing founder Carl Pei on Ear (1) and building a hardware startup from scratch
Image Credits: ProWellTech
In an exclusive interview with Hardware Editor Brian Heater, Nothing Founder Carl Pei discussed the product and design principles underpinning Ear (1), a set of US$99/€99/£99 wireless earbuds that will hit the market later this month.
“We’re starting with smart devices,” said Pei. “Ear (1) is our is our first device. I think it has good potential to gain some traction.”
Despite Apple’s market share and the number of players already competing in the space, “we’ve just focused on being ourselves,” said Nothing’s founder, who also shared initial marketing plans and discussed the inherent tensions involved with manufacturing consumer hardware.
“Everything is a trade-off. Like if you pursue this design, that has a ton of implications. Battery life has ton of implications on size and on cost. The materials you use have implications on cost. Everything has an implication on timeline. It’s like 4D chess in terms of trade-offs.”
Will Didi’s regulatory problems make it harder for Chinese startups to go public in the US?
Image Credits: Nigel Sussman (opens in a new window)
Last week, just days after its U.S. IPO, cybersecurity regulators in China banned ride-hailing company Didi from onboarding new members.
Over the weekend, authorities called for Didi to be removed from several app stores due to “serious violations of laws and regulations in collecting and using personal information.”
The move suggests that China’s government “is willing to sacrifice business results for control,” writes Alex Wilhelm in this morning’s edition of The Exchange.
“For China-based companies hoping to list in the United States, the market likely just got much, much colder.”
79% more leads without more traffic: Here’s how we did it
Image Credits: Peter Dazeley (opens in a new window)/ Getty Images
Jasper Kuria, the managing partner of CRO consultancy The Conversion Wizards, walks through an A/B test showing how research-driven CRO (conversion rate optimization) techniques led to a 79% increase in conversion rates for China Expat Health, a lead-generation company.
“Using research-based CRO principles to optimize a landing page for PPC (pay per click) traffic produced a 79% conversion lift, dramatically reducing the cost per lead for the company,” Kuria writes.
“They could then afford to bid more per click, which increased their overall monthly leads. CRO can have this kind of transformative effect on your business.”