In the world of startup fundraising a well-crafted pitch deck is one of the most powerful tools you can use to generate attention from investors and showcase to them exactly what you plan to achieve. In this series of articles, we are breaking down one by one each of the slides that constitute a pitch deck - from problem, solution, product, and market - and now, to one of the pivotal elements of every successful startup pitch - competition.
And even more tips on the fundraising process, with insights from investors and details on all kinds of startup pitches, can be found in Vestbee’s ebook: Perfect Pitch - The Ultimate Startup Guide. To discover more VC funds, check out our VC list - a complex database of the best early-stage venture capital funds investing in innovative startups across different verticals. Read More.
So without further ado, let’s continue our exploration of the startup pitch deck for investors and delve into the nuances of a perfect competition slide - its significance, content, visual elements, and more.
What is a competition slide in the Investment Pitch Deck?
The competition slide in the startup pitch deck informs investors who are you competing against in the industry and what unique characteristics make you better than your competitors. It places your product offering on the competitive landscape and shows how your startup distinguishes itself from other key players in the market. You should demonstrate a deep understanding of your industry and reveal your perspective on market opportunities, competitive advantage, and business defensibility. Investors often see this slide as a perfect way to measure founders’ business and strategic abilities.
Contrary to what your instincts may tell you, a lack of competition is typically a bad sign. It either means that you didn’t do good enough research (already a red flag with investors) or that the problem you're attempting to address doesn't truly exist - resulting in a lack of demand. It's important to recognize that customers often address their pain points through various, sometimes less apparent methods - and they need to be taken into consideration when conducting your competitive analysis. What investors seek is a comprehensive understanding of the competitive landscape, supported by thorough research.
Key components of the competition slide in the Investor Pitch Deck
The competition slide serves as a canvas on which you can show how you stand among your competitors. It should paint a clear picture of your main rivals, highlighting what they excel at, and where they fall short. Instead of diminishing their strengths, you should aim to demonstrate how you plan to surpass them. The essential elements to include are:
- Direct and indirect competitors - Present a comprehensive list of competitors, both direct (offering similar products/services) and indirect (tackling the same problem through different means).
- Your Unique Selling Propositions (USP) - Show what sets your product or service apart from the competition. Highlight what is the most important - may it be features, benefits, pricing, customer service, user experience, or any other distinguishing attributes.
- Focus on your customer’s needs - When differentiating your product or service from the competition, it's crucial to focus on answering the question of how you are meeting customer needs. Identify what your target audience wants and needs, and position your product or service as the solution to their problems.
What is more, in your presentation you can also address potential threats posed by competitors, industry shifts, or emerging technologies. This could signify that you are not shying away from more difficult topics. Demonstrating your preparedness for these challenges shows your strategic thinking and long-term planning.
Tips on positioning your startup against competitors
Accurate competitor analysis is the basis of an effective competition slide. Identifying competitors requires recognizing both obvious and less apparent rivals, and positioning your business, product, and value proposition against what they are offering. There are some strategies that could be useful in this process:
- Keyword analysis - Perform a competitor keyword analysis to understand what keywords your rivals rank highly for. This data can inform your content strategy and highlight companies gaining traction in the market - you can use this data to outperform your competitors and see what works for them, what channels drive their traffic etc.
- Benchmarking - Compare your brand's strategies, practices, and offerings against those of competitors. Assess key performance indicators to identify gaps and potential areas for improvement.
- Analyzing your market share - Evaluate the market share held by competitors and assess growth potential. This aids in understanding the space available for your product or service to thrive.
- Looking for gaps in the market - Identify unmet needs in the market, areas where competitors fall short, and offer solutions that address these gaps. This positions your product as unique and valuable.
Visual elements in the competition slide - examples
Utilizing visual elements enhances the clarity and impact of your competition slide. Graphs, tables, flowcharts - there are multiple ways you can showcase your company’s data against that of your competitors. Consider the following options:
Competitive Analysis Template
This competition matrix is a visual tool inspired by the concept of the magic quadrant. It consists of a chart divided into four sections, each assigned different values based on two attributes: high trait and low trait. The chart is segmented by arrows or lines that connect the extremes of these attributes, creating the four quadrants. To build it in your pitch deck, start by selecting attributes that highlight your company's strengths and differentiate it from others. These attributes should be aligned with your unique value proposition. Using these attributes, you compare your company with competitors.
In the matrix, position your company in the top right-hand quadrant, above and to the right of all competitors. This location is significant as it represents a privileged spot on the matrix. From here, you can craft compelling narratives for potential investors, showcasing your company's superior positioning and value in relation to the competition.
Examples from startups:
- Front (source)
- Yalo (source)
Competitor Comparison Chart
Create a chart that visually contrasts your company's attributes with competitors'. This offers a clear comparison and provides a basis for investor discussions.
Examples from startups:
- Fibery (source)
- Albusi (source)
Other visual representations of competition slide
Here are some other examples of competition slides from successful startups’ pitch decks.
- Revolut (source)
However, it must be said that looking at this slide with a 2023 lens - as strong in the merit as it is, with strong use cases and lots of relevant data, it would benefit from a graphic boost.
- Mint (source):
- Hive (source):
- Fibery (source):
Common mistakes to avoid when crafting a competition slide in Investor Pitch Deck
- Overlooking the competition - don’t downplay your competitor’s achievements. Investors want to know that you have thoroughly researched the market and understand your competitors. Downplaying the competition can make you appear unprepared and unrealistic, which can hurt your chances of securing funding.
- Not enough research - make sure you have a thorough understanding of who you are competing against - make sure you are familiar with your rivals’ strengths, weaknesses, business plans, and funding history - the more you know about the industry you are entering the better.
- Lack of differentiation - while it's important to list competitors, it's equally vital to articulate how your startup stands out clearly. Avoid a generic description of your differentiators, and instead highlight specific features, technologies, or strategies that give you a competitive edge. Show how your solution addresses gaps in the market that others haven't.
- Don't focus only on your product’s features - while features matter, investors are also interested in understanding the broader value proposition, market trends, and how your solution fits into the bigger picture.
- Neglecting market trends - failing to highlight relevant market trends that can impact your startup's position. Investors want to see that you're aware of emerging technologies, shifts in customer preferences, and industry changes. Address how these trends might affect your competition and your strategy.
Competition slide in Investor Pitch Deck - a summary
The competition slide in your investor pitch deck plays a pivotal role in demonstrating your thorough market understanding and strategic thinking. Avoid common pitfalls like downplaying competitors or being overconfident. Instead, focus on accurately representing your competitors, highlighting your unique values, and providing evidence to back your claims. Through effective competitor analysis, thoughtful positioning, and compelling visual elements, your competition slide can serve as a catalyst for further investor engagement.
For more assistance in writing your Investor Pitch Deck and pitching your startup to investors see the following articles:
- How to Create a Perfect Problem Slide in Your Pitch Deck?
- Tips for Crafting the Perfect Ask Slide In Pitch Deck
- Common Mistakes In Startup Pitch Deck To Avoid During Fundraising
- A Bunch Of Tips On Pitching Your Startup To Investors
- How To Write Elevator Pitch For Investors
- How To Create A Pitch Deck That Will Get Your Startup Funded
For even more insights on how to create a perfect investor pitch deck click here to download Perfect Pitch - The Ultimate Startup Guide, an ebook prepared by a team of experts and investors addressing the question of how to make your startup fundraising process successful.
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Related Posts:
Startup Fundraising: How To Create The Perfect Product Slide In The Investment Pitch Deck (by Katarzyna Groszkowska, Editor, Vestbee)
Startup Fundraising: How To Create The Perfect Market Slide In Your Startup Pitch Deck (by Katarzyna Groszkowska, Editor, Vestbee)
Startup Fundraising: How to Create a Perfect Solution Slide in Your Pitch Deck?
(by Katarzyna Groszkowska, Editor, Vestbee)
