How to Stand Out Your Startup in a Crowded Market, According to Investors

At TechCrunch Disrupt, three investors took the stage to analyze what makes – and breaks – a pitch deck. Jyoti Bansal, founder turned investor; Medha Agarwal of Defy; and Jennifer Neundorfer of January Ventures shared with the crowd their candid opinions on what works in a pitch deck – and what doesn’t.

Their biggest pet peeve? Buzzword overload.

The more a founder talks about AI in their pitch, Agarwal said, the less likely the company is using AI. “People who are doing really innovative things talk about it, and it’s baked in, but it’s not the core of their pitch,” she told the audience.

Bansal, who started and sold several businesses before becoming an investor, divided investors’ expectations into three basic questions. First, he questions whether there is a large enough market to exploit. Does the founder’s idea have the potential to become a huge company? And is the problem he or she is solving actually worth solving?

The second thing investors want to know is why This the founder is the one who should build the company. “There must be something unique about you,” Bansal told the crowd, adding that this means having special founding team members or special skills. “Why would you win? If the problem is interesting, there will be 20 other companies trying to solve it, so why would you win and what is your opportunity?”

The third thing investors want to see, Bansal said, is some validation. “Traction with customers,” he said. “Validation can be initial feedback from the customer, revenue, something, but some kind of validation.”

These three questions, Bansal noted, all lead to the ultimate litmus test: Could this company become a billion-dollar company?

The panel also discussed how AI startups can differentiate themselves as the space becomes saturated. Bansal emphasized the importance of domain expertise and a clear competitive strategy. Neundorfer said the companies that catch his attention are those that drive new behaviors rather than just incrementally improving an existing process.

Agarwal offered more tactical advice to founders, saying they should explain how AI technology makes their product possible; articulate clear marketing strategies; and demonstrate how their business will be more efficient than that of incumbent operators.

It’s also very important to be honest about who your competitors are, she added. Some of you have “lost some credibility with me because it wasn’t on your slide,” she told the founders in the audience.

Finally, investors shared tips for navigating a rapidly changing landscape. Agarwal urged founders to stay abreast of industry developments. Neundorfer recommended staying connected to founder networks to share tools and information.

Bansal’s advice was simpler: “Focus on creating your product.” »