How to Create Effective Competitor Slides for your Pitch Deck Without Rookie Mistakes

How to Create Effective Competitor Slides for your Pitch Deck Without Rookie Mistakes

In this blog, you’ll learn the important components of a strong competitor slide. We'll explore common pitfalls and provide actionable tips to help you create a standout slide that will excite VCs and get you more investor meetings.

We’ll tell you what investors are looking for in your competition slide and share insights to help you identify key differentiators, and transform your findings into a compelling competitor slide.

Here's the truth: investors aren't just looking for a great idea. They want to see a clear path to success, and a crucial part of that path lies in demonstrating how you stand out from the crowd.

The Importance of In-Depth Competitor Analysis

Before diving into the nitty-gritty of slide construction, let's address the foundation: competitor analysis. Remember, investors have a broad understanding of your industry.

Underestimating your competition is a recipe for disaster, so take the time to do an exhaustive analysis. Ask basic Questions Like : 1. Who are your direct and indirect competitors? 2. What are their strengths and weaknesses? 3. How does their product or service compare to yours?

This analysis isn't just about ticking a box. It's about identifying exactly what sets you apart from your competitors and how to showcase it.

It's your chance to discover potential blind spots and ensure your startup truly solves customer problems in a unique way.

Common Pitfalls in Competitor Analysis When Building a Pitch Deck

Many pre-seed founders raising funds fall victim to these common mistakes:

  • Incomplete analysis: Relying solely on a quick Google search won't cut it. Dig deep, use industry publications, competitor websites, and even talk to their customers to get a holistic understanding.
  • Focusing solely on features: Investors care about benefits. How does your competitor's product or service improve the customer's life? Don't just list features; understand their impact.
  • Ignoring indirect competition: Sometimes, established players in adjacent markets can pose a bigger threat than direct competitors. Identify all potential challengers.
  • Incumbent Practices: Sometimes your competitor is not actually a product or tool, but an accepted way of doing things today that creates a difficult shift for your target audience. Netflix famously said their competition was sleep!

Building an Effective Competitor Slide

Now, let's get down to business. Here's how to create a competitor slide that captures investor attention:

The Anatomy of a Compelling Competitor Slide

  • Choosing the Right Competitors: Don't waste space on irrelevant players. Focus on the 2-3 competitors your target audience and investors are most likely to ask about. Generally go for a big competitor and then 2 smaller competitors. You can use Score My Deck to ask for competitors in your industry.
    • Simple Questions can be - “Based on what you know about our Startup, can you share 5 competitors and their latest funding round?”
    • “Can you confirm how much they raised in their seed round?”
  • Identifying Key Differentiation Factors: What makes you unique? Is it your cutting-edge technology, superior customer service, or disruptive business model? Highlight these differentiators.

Visualizing Your Competitive Advantage: A clear and concise visual representation is critical. Consider a table format, listing competitors across the top and key benefits down the side, using check marks and quantifiable data where possible. (see the image below)

Going Beyond Features: Focusing on Benefits

At pre-seed investors are less interested in a laundry list of features. They want to know the impact those features have on the customer.

Showcase how your product or service solves a specific pain point or delivers a valuable benefit that your competitors don't.

Quantifying Your Competitive Edge

Numbers speak volumes. Whenever possible, quantify your competitive advantage.

Can you boast a faster processing speed, higher customer retention rate, or more affordable pricing? Quantify these benefits to highlight the tangible value proposition of your offering.

Critical Mistakes to Avoid in Your Competitor Slide

Create a well-structured competitor slide, similar to the one shared in the image above. While this highlights your moat, there are common mistakes pre-seed founders make that can undermine your deck’s effectiveness.

Let's dive into these mistakes and how to avoid them:

1. Underestimating the Competition

  • Dangers: Ignoring or downplaying competitors can make you appear unprepared and arrogant. Investors will question your market knowledge.
  • Solutions: Conduct thorough research, identify key competitors, and understand their strengths and weaknesses. Showcase your knowledge of the competitive landscape. Useful information to have to hand is your competitors' market dominance. I remembered once when we were able to share how fragmented an industry was, making it clear as to the challenges others have faced in capturing a bigger proportion of the market.

2. Focusing Solely on Features

  • Dangers: A feature-by-feature comparison can be overwhelming and doesn't highlight your unique value. Investors are more interested in benefits.
  • Solutions: Emphasize how features translate into benefits for customers. Use clear and concise language to explain how your product or service addresses customer needs better than competitors. Focusing on benefits also demonstrates good founder-market-fit, it shows that you understand the problem your target audience has.

3. Overcomplicating the Slide

  • Dangers: A cluttered slide can be difficult to understand and detracts from your key message.
  • Solutions: Keep it simple and focused. Prioritize the most important information and use clear visuals. Consider using a table format similar to the one I shared earlier with key competitors and main benefits. Stay away from Venn diagrams and quadrants.

4. Ignoring Indirect Competitors

  • Dangers: Overlooking indirect competitors can blindside you to potential threats.
  • Solutions: Identify potential competitors in adjacent markets that could impact your business. Analyze how their offerings might affect your target market.

5. Failing to Highlight Your Unique Value Proposition

  • Dangers: If you don't clearly articulate your competitive advantage, investors may question your company's value. This also leads to the question, “What stops Google from doing this?”
  • Solutions: Use the competitor slide to emphasize your startup’s value proposition. Clearly articulate how your product or service differs from competitors and addresses customer needs better.

Other Pitch Deck Mistakes Pre-Seed Founders Make

  • Overcrowding the slide: Too much information can be overwhelming. Focus on key differentiators.
  • Negativity: Avoid bashing competitors. Focus on highlighting your strengths.
  • Inaccuracy: Ensure all information is accurate and up-to-date.
  • Lack of visual appeal: A visually engaging slide is more likely to capture attention.
  • Ignoring indirect competitors: Consider potential threats from adjacent markets.

By avoiding these common mistakes, you can create a compelling competitor slide that effectively communicates your key differentiators and strengthens your pitch deck.

Enhancing Your Score My Deck Performance

Always use Score My Deck as your fundraising co-pilot. Here's how:

  • Get a Score My Deck Rating: Score My Deck analyzes your pitch deck based on industry best practices, including your competitor slide. It will identify areas for improvement and provide actionable feedback.
  • Personalized Feedback: Score My Deck goes beyond just a score. It provides personalized, expert feedback on your entire pitch deck, including your competitor slide.
  • Leverage Feedback: Use Score My Deck's detailed pitch deck review to identify areas where your competitor slide can be improved.
  • Iterate Based on Insights: Incorporate the feedback into your slide, refining your messaging and visual presentation.
  • Track Your Progress: Use Score My Deck to monitor the evolution of your pitch deck over time and measure the impact of your changes.

A strong competitor slide is not just about listing competitors;

Share your unique value proposition using these guidelines and leverage tools like Score My Deck to create a compelling narrative that resonates with investors and increase your chances of securing funding.