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In 2022, investors spent 24% less time than in 2021 on startup pitch decks they faced. The average time they invested in successful pitch decks in 2022 was 2.46 minutes, and 3.30 minutes in 2021.
According to many venture capitalists and Angel investors attending LEAP 2023, this trend will continue in 2023 with mass layoffs and a turbulent global economy.
Yes. For startups, there is no ‘cheap money’ anymore.
Coming to the technical side of things, in the past, pitch decks were primarily made up of text and images. Admittedly, text and complex graphics on pitch deck slides have lost their charming days – the rich eye-candy effect.
So, what’s the game changer in 2023? Video.
Technically, the power of video is becoming increasingly important in today’s investment climate.
Related: Connecting With Your Target Audience Through Video
Capture investor attention this year: the importance of video in pitch decks
We all know that video is a dynamic and engaging medium that can help to bring a pitch deck to life, making it more compelling and memorable for investors. Let’s explore how video can enhance a pitch deck and why it’s becoming increasingly important in the current investment climate.
Video can effectively convey a startup’s message and value proposition because it allows for multiple forms of communication, such as verbal, visual and audio. This can help to make the message more engaging and memorable for the viewer.
Video presentations in pitch decks can increase investment chances by 50% and increase engagement and understanding by 80% compared to text alone.
Additionally, video in pitch decks can be used to showcase a product or service in action, give a behind-the-scenes look at the company or introduce the team, which can help to build trust and credibility with investors.
Examples of successful startups that have used video in their pitch decks include Dropbox, which used a simple animation to explain how their service worked, and Airbnb, which used a video of real customer testimonials to showcase the value of their platform.
Understandably, using video alone won’t guarantee success. It should be incorporated with other elements of the pitch deck, such as clear and concise messaging, a strong value proposition and an understanding of the target audience.
Related: Five Best Pitch Decks of All Time
And here are some success stories!
Dropbox: In its early days, Dropbox used an animated video to explain how its service worked. The video helped quickly convey their product’s value and how it solved a common problem.
Airbnb: Airbnb started using videos of real customer testimonials to showcase the value of its platform. This helped to build trust and credibility with investors and demonstrate the real-world impact of their service.
Square: Square used a video to introduce its team and showcase its product. This helped to build a personal connection with investors and demonstrate the ease of use of their payment processing solution.
Zendesk: Using video to explain their product, Zendesk Chat helped businesses connect with customers in real time. This helped convey their product’s value and how it solved a common problem.
It’s worth noting that these are just examples, and many more successful startups have used video in their pitch deck to convey their message and value proposition effectively.
Tips for creating a compelling video pitch deck
A successful video pitch deck is like a movie trailer, where every element is carefully crafted to engage the viewer and convey the key message effectively.
1. The story — Storytelling is a crucial element of a video pitch deck. It’s important to have a clear and compelling story that communicates the problem your startup is solving, the solution you offer, and its impact on the market. This should be presented in a way that is easy to understand, relatable, and memorable.
2. The design & visuals — Visuals are an important video pitch deck element. They should capture the viewer’s attention, convey information and help them understand your message. Using a mix of animation, live-action footage and infographics can make the video more engaging and memorable.
3. The voice — Sound is another key element of a successful video pitch deck. A well-crafted soundtrack can set the tone, create an atmosphere and help to keep the viewer engaged. A professional voice-over can also help convey critical information and give a polished feel to the video.
4. The alignment — Lastly, it’s essential to remember that a video pitch deck should be tailored to your target audience and align with your overall marketing strategy. It’s also important to ensure the video is high-quality, visually appealing and easy to understand.
Over to you
Many stalwart startup investors are being pretty vocal about using videos in startup pitch decks.
Once, I was having a one-on-one conversation with one of my business connections (the investor herself); she told me that I would love to see more videos in fundraising pitches. She claimed that if 85% of her pitch decks included video, she probably would answer 85% of those emails.
This is the game changer we have been talking about in this blog, and as a founder, you need to harness as much information as you can to set your deck presentation apart from the sea of pitch decks faced by investors.
