Ditch the 2x2 Graph Format In Investors Decks

In the dynamic landscape of startups, a compelling investor deck can be a pivotal tool in garnering interest and securing funding. While many components of these decks are crucial, the competitive analysis stands out as a linchpin. Yet, a significant number of founders opt for a rudimentary 2x2 graph with logos, missing out on the opportunity to present a comprehensive picture. In this post, we'll explore the pitfalls of this approach and champion the merits of a detailed competitive analysis table.

Here’s why your 2x2 ticks all of the WRONG boxes with investors:

It’s Repetitive: The startup's logo, often brightly showcased in the top right corner, suggests a position of market leadership. But so does every 2x2 graph on any investor deck…. You understand why it’s ludicrous.

It’s Opaque: Those minuscule or faded logos of competitors are not just hard to discern but also fail to convey the depth of the competitive landscape.

It’s F–g Lazy: A basic graph overlooks the intricate differences between the startup and its competitors, leaving investors with more questions than answers.

It Puts You in a Defensive Position: The overreliance on the 2x2 graph is a glaring oversight. Investors, well-versed in the startup ecosystem, often glide over this graph, prompting them to undertake their own competitive analysis. This can unearth overlooked competitors, placing founders in the uncomfortable position of defending their oversight and potentially diminishing investor trust.

Instead, we strongly advise founders to include a thoughtful competitive analysis over a table format, with the following bits of information:

Addressable Buyers: Delving into the target audience of each competitor is paramount. It's not just about numbers; it's about understanding the nuances of each segment. Recognizing these subtleties can unveil potential market opportunities or threats.

Go-To-Market (GTM) Tactics: A deep dive into the marketing and sales strategies of competitors can unearth insights into market trends, successful growth tactics, and potential entry barriers that might not be immediately apparent.

Feature Sets: A granular comparison of features can spotlight a startup's unique offerings. It's not just about what features are present, but how they're implemented, their user-friendliness, and their real-world impact.

Using the table format, will grant you with happy investors that recognize the hard and thoughtful work that is required to run a real competitive landscape analysis.

It’s Informing Your Investors: A meticulously crafted table offers a panoramic view of the competitive landscape, arming investors with the insights they need to make informed decisions.

It Builds Your Credibility with Investors: Demonstrating an in-depth understanding of the market and competition can significantly elevate a founder's standing in the eyes of potential investors.

It Helps You and Your Team Identify Opportunities: A thorough analysis can illuminate market gaps, potential areas for differentiation, and innovative avenues that might have been previously overlooked.

In summary, in the cutthroat world of startups, every detail counts. Founders have a golden opportunity to make a lasting impression with their investor decks. By transitioning from the rudimentary 2x2 graph to a comprehensive competitive analysis table, they not only showcase their market acumen but also position themselves as thorough, proactive, and primed for success. As the adage goes, "It's the little details that are vital. Little things make big things happen."