The most common competition slide mistake is a tick-box table where the startup checks every box, often comparing simple features competitors could copy in days. VCs want a sharp view of the market instead: the few criteria that will determine the future market leaders, and how the startup positions itself along those criteria.
Yesterday, I went through the deck of a quite experienced founder team in my capacity as Managing Partner of Delin Ventures, an early-stage Future of Work fund.
It was an interesting topic in an area relevant to me. The competition slide, though, was disappointing:
A table comparing the startup with competitors and, of course, the startup ticked all the boxes while the competitor’s columns were full of X. If you follow me for longer, you know that these kind of competitive differentiation slides are at the top of my hate list.
But even more crucial the first of many dimensions compared in the table was the possibility to bookmark items (I’m keeping it abstract for anonymity reasons).
Bookmarking items is a simple feature competitors could replicate within a few days max – if it makes sense for them.
There are already three fundamental mistakes here:
- Don’t go for cliche competitor comparisons where you tick all the boxes and the others don’t.
- When you go the route, don’t compare simple features others could easily build, too.
- Even if you add not-so-sophisticated features, don’t list them at the top of your table. At the top, I expect the most important differentiator. Putting one of your weakest differentiators at the top is quite a disservice to yourself.
But there is something that is even more important:
It’s easy to come up with differentiators where you tick the boxes and the others don’t.
The crucial question is: Why will those differentiators move the needle? Why will exactly these differentiators determine who will win the market?
Will the company win the market that allows users to bookmark items? Because it had that one feature?
You need to have a laser-sharp view of the market and a clear hypothesis on which differentiators will separate the winners and losers–and convey it to VCs.
It’s not about feature differentiation and simply comparing what you have that others don’t. This is not a sales pitch.
It’s (a) about determining the few criteria that will determine the future market leaders and (b) showing how you position yourself along those criteria.
Will Ferrari win a Formula 1 race because their cars are red and most others are not? Or because of the leather they use for their driver seats? Or are there other criteria that determine the winner?
So, what are the real criteria that will make you win your race?
Frequently asked questions
What is wrong with tick-box competitor tables in pitch decks?
They are a cliché: the startup ticks all the boxes and competitors’ columns are full of X. They often compare simple features competitors could build within days, which says little about who will win the market.
What should go at the top of a competition slide?
Your most important differentiator. Putting one of your weakest differentiators at the top of the table is a disservice to yourself.
What do VCs want to see on a competition slide?
A laser-sharp view of the market and a clear hypothesis on which few criteria will determine the future market leaders, plus how your startup positions itself along those criteria.
