How can you balance being critical with being supportive when evaluating a pitch deck?

To effectively evaluate a pitch deck, clarity in your evaluation criteria is paramount. This clarity not only fortifies your assessment against bias but also guides founders to align their presentations with your expectations. By transparently sharing your valuation metrics—highlighting key areas of focus, evaluation methods, and potential inquiries—you foster a well-prepared and insightful dialogue. This approach ensures that both evaluator and founder are on a path towards a constructive and informed engagement.

Simple answer, hard to execute: Balance the fine line between asking yourself "What if?" and "Why not?". It is incredibly important to balance between being critical and forward-looking in VC. It's so easy to look at any early-stage idea and find hundreds of reasons for why it might not work out. Seeing the potential of why something might work out is much harder, but also more rewarding.

This post about balancing critique and support in pitch deck evaluation reminds me of a shark tale. Arabella, the shark, was known for her critical yet supportive review of fellow sea creatures' plans. She'd always start with, "Great effort, but let's not swim into the net!" Arabella had clear criteria: feasibility, innovation, and a touch of seaweed humor. She believed in providing constructive feedback, ensuring each fish left with a clear understanding of where they excelled and where they could improve. Her approach was a perfect blend of being sharp as a shark's tooth yet as nurturing as the ocean's embrace. In the end, it’s about guiding, not just criticizing. Swim wisely and spread shark love! #divineintervention #gabenfreude

In pitch sessions, venture capitalists ask a range of questions, focusing on market opportunities like the specific problem addressed, market size, and how the startup stands out. In deeper discussions, they examine the business model to understand how revenue is generated and the pricing strategy. They also pay close attention to the unique selling proposition (USP) of the product/technology, including its description, tech stack, and intellectual property (IP). Furthermore, they evaluate team experience and identify any skill gaps. Additionally, they analyze the competitive landscape to gain a comprehensive understanding of the startup's positioning.

Setting clear criteria evaluating pitch decks helps maintain objectivity and consistency in feedback. Clarity in evaluation criteria engages the brain’s executive functions, enhancing cognitive processing and decision-making. Activation of the prefrontal cortex supports goal-directed behavior and logical reasoning, facilitating structured assessment of pitch decks. In an interview with venture capitalist Mary Meeker, she emphasises the importance of defining evaluation criteria, stating, “Establishing clear criteria ensures that feedback is focused and constructive, leading to better outcomes for both entrepreneurs and investors.” Mary Meeker is known for her influential annual internet trends report and successful investments in tech.

This guidance on specific and actionable feedback takes me back to the story of Finley, the fastidious fish. Finley, unlike his vague and generic counterparts, always had a laser-focused approach. When reviewing his fellow sea creatures' business seaweed plans, he'd never just say, "This won't float." Instead, he'd dive deep, offering pearls of wisdom like, "Add more kelp here for better buoyancy." His critiques were as specific as a shark's tooth and as actionable as a dolphin's leap. It's like telling a clownfish to brighten its stripes, not just to "be more colorful." Remember, in the vast ocean of feedback, be the guiding lighthouse, not the foggy mist. Navigate with precision and spread shark love! #divineintervention #gabenfreude

Effective feedback transcends mere critique, transforming into a beacon for growth. When advising founders, specificity is your ally. Dodge the shadows of ambiguity; illuminate the path with precise, actionable insights. Rather than stating "the market size is too small," guide them: "Show how you'll broaden your market or tap into new segments." Enrich your feedback with examples, strategies, and resources, empowering them to refine their pitch and strategy. This approach not only highlights areas for improvement but also fuels their journey towards innovation and success.

Provide founders with specific examples and detailed explanations in your feedback to help them understand areas requiring improvement or attention. Recognise the challenges inherent in entrepreneurship and convey confidence in the founders' ability to overcome obstacles and achieve success. Utilize the feedback sandwich method, structure your feedback by starting with praise for what was done well, followed by suggestions for improvement, and concluding with further encouragement or praise. This balance fosters motivation and drives progress.

Providing specific and actionable feedback enables entrepreneurs to understand areas for improvement and take meaningful steps to enhance their pitch decks. Specific and actionable feedback triggers neural mechanisms associated with learning and skill acquisition. Activation of the hippocampus facilitates memory encoding, while engagement of the dorsolateral prefrontal cortex supports cognitive control and planning, enhancing the effectiveness of feedback implementation. In a dialogue with startup mentor Guy Kawasaki, he emphasises the importance of actionable feedback, stating, “Offering specific suggestions allows entrepreneurs to make targeted improvements and refine their pitch decks for greater impact.”

Define Your Must-Haves: Identify key areas like problem, solution, market, team, financials, and presentation itself. Define specific standards for success in each (e.g., quantified impact for "clear problem"). Communicate your evaluation framework upfront so teams tailor their pitch and address your concerns directly.Adapt criteria for early-stage (idea focus) vs. later-stage (detailed plan) ventures. Stick to your core, but welcome unique approaches that still meet the needs effectively. Innovation shouldn't be stifled.

Being humble is one of the most important qualities as investor. While investors see a lot and certainly have great pattern recognition, strong founders typically know the space they build in better than even very experienced investors. Therefore, spending time to listen and learn before applying judgment will get much better outcomes.

Assessing a pitch deck demands reverence and empathy. Acknowledge the founders' dedication and vision—cherish their journey and efforts. Offer constructive insights, focusing on strengths and potential. Phrase feedback positively, e.g., "Your approach inspires...", "Your vision captivates...", or "Your creativity stands out...". Eschew negative critiques that diminish their endeavor. Empower them with encouragement and genuine interest, fostering a culture of respect and constructive growth.

Navigating the waters of pitch deck evaluation calls for a blend of respect and empathy, much like the approach of the wise octopus, Oliver. Oliver was known for his tactful tentacles, always gentle yet firm. When critiquing the underwater startups, he never inked harsh words. Instead, he'd wrap his arms around their ideas, highlighting the spots with phrases like, "I admire your coral-like resilience," or "Your plankton strategy is quite innovative." His style was to uplift, not deflate, recognizing the effort poured into every bubble of their vision. It's a reminder that in the sea of feedback, a respectful and empathetic current can carry ideas to new depths. Let's create ripples of positive change! #divineintervention #gabenfreude

Approaching pitch deck evaluations with respect and empathy fosters a supportive and constructive environment for entrepreneurs. Empathetic feedback activates brain regions associated with social cognition and emotional processing, promoting rapport and trust between evaluators and entrepreneurs. Activation of the mirror neuron system facilitates empathy and understanding, enhancing the receptivity of feedback recipients. In an interview with prominent entrepreneur, “Shark Tank” investor investor and philanthropist Mark Cuban, he underscores the importance of empathy in feedback delivery, stating, “Respecting the effort and passion behind each pitch deck fosters a culture of collaboration and mutual growth.”

Deliver your feedback constructively, avoiding personal attacks or dismissive language. Remember, the team has poured their heart and soul into this pitch. Acknowledge their effort and passion while offering critical insights. Instead of saying "Your financials are unrealistic," frame it as "From my perspective, the financial projections need further explanation to ensure their credibility." This takes ownership of your feedback and avoids placing blame. Don't just highlight weaknesses. Recognize strengths and celebrate achievements.

In assessing a pitch deck, strive for equilibrium and fairness. Celebrate its strengths, yet candidly address its shortcomings. Judge it by its inherent value, not against others. Let facts and evidence guide you, sidelining personal biases. Avoid assumptions; instead, inquire and understand. This balanced approach not only honors the creators' efforts but also fosters a culture of constructive feedback and growth.

Be balanced and fair When you evaluate a pitch deck, you should be balanced and fair. Do not focus only on the negatives or the positives, but on both. Give praise where praise is due, but also point out the gaps or weaknesses. Do not compare or contrast the pitch deck with other pitch decks, but judge it on its own merits. Do not let your personal preferences or opinions cloud your judgment, but base it on facts and evidence. Do not make assumptions or jump to conclusions, but ask questions and seek clarification.

Striving for balance and fairness in pitch deck evaluations ensures equitable opportunities for all entrepreneurs. Fairness activates brain regions associated with reward processing and social decision-making, fostering positive perceptions and cooperation. Activation of the anterior cingulate cortex and insula supports emotional regulation and conflict resolution, facilitating impartial judgment and fairness. The importance of fairness in evaluation processes is emphasised in the likes of startup accelerators, highlighting the need for transparency and consistency to uphold integrity and credibility. Such practices ensure that entrepreneurs receive equitable consideration and constructive feedback to support their growth and success.

Create a space where the team can respectfully challenge your feedback and offer their own perspective. This open dialogue allows for a more nuanced understanding of the issues and can lead to mutually beneficial insights.

Assessing a pitch deck demands a blend of candor and tact. Embrace transparency, sharing feedback directly yet with kindness. Avoid the pitfalls of empty promises; instead, offer realistic insights. Promptness in feedback fosters consistency, enhancing its value. Openness to critique not only nurtures trust with founders but also refines your acumen as an investor. This balanced approach, merging critique with encouragement, cultivates trust and bolsters your stature in the venture realm.

Entrepreneurship isn’t for everyone, and while feedback should always be respectful, I am a firm believer that feedback should be honest and transparent. By leaving out tough feedback, investors miss a huge opportunity to truly help a founder who clearly could benefit. Hate their pitch? (Respectfully) tell them why Don’t understand their market? (Respectfully) say their slide could have been more clear Think they have a garbage business? (Respectfully) talk about the improvements you think they can make Investors should be open and honest with their feedback to founders but always with respect.

The goal is to leave each interaction with the founders gaining something tangible (an insight, a perspective, feedback etc). A better way to give feedback is to ask questions that help the entrepreneur reflect on their own ideas and identify the possible flaws, rather than pointing them out directly. This also shows that you are paying attention to what they are saying.

In the coral reefs of honesty, there swims a straightforward starfish named Stella. Stella's mantra for evaluating pitch decks was simple - be as open and honest as the ocean is vast. She never hid behind seaweed curtains of vagueness or sugarcoated her words with plankton. Instead, she offered her feedback like the clear waters of the tropics - transparent and refreshing. Stella believed in timely tides, providing her insights when they were most needed, not after the coral had bleached. Her openness wasn't just about giving feedback; she welcomed it too, understanding that even a wise starfish has much to learn from the currents of different perspectives. #divineintervention #gabenfreude

Transparency builds trust and ensures they're presenting relevant information.Avoid vague critiques like "it needs work" or "I'm not convinced." Pinpoint specific areas for improvement and offer evidence for your observations. This helps the team understand what needs refining and provides actionable steps for progress. Everyone has biases. Acknowledge your own perspective and how it might influence your evaluation. This fosters trust and encourages a more objective discussion.

Oftentimes, we might need to give feedback that needs be actionable and help the founders with the outcomes. This requires us to choose our words and any recommended actions carefully in the founders context and their maturity to handle feedback. One thing that I have found very helpful here is to ask a question to the founder and engage in a discussion. For instance, instead of being critical about the business model, we can choose to ask the founder to reflect on what they perceive are some of the gaps in the business model. Engaging in a conversation to discover the gap can be more productive than being critical about the gap.

(a) Recognising the potential in people, I highlight the team's strengths & areas for growth. Reflecting on a successful exit where the founding team's complementary skills were pivotal, I encourage startups to present their team dynamics and expertise clearly in the pitch, sometimes suggesting strategic hires to fill critical gaps (b) Having witnessed many startups struggle with cash flow, I emphasise the need for prudent financial management. Sharing insights from a venture that thrived by adopting lean principles & a staged funding approach, I advise startups to plan for financial sustainability, even in the face of unexpected market shifts (c) Understanding the value of proprietary technology, I advise on the importance of IP protection

The questions you ask can lead the founders to think deeply about various aspects of their business. This may help them refine areas such as product/market fit, business model, growth strategy, etc.

Follow up with written feedback: If time allows, provide a written summary of your key points and suggestions. This gives the team a concrete reference to guide their revisions and future development.