A slide in your pitch deck that shows the competition is a must. However, it's not enough to just list your competitors and their market share figures. You also need to show what makes you stand out from them: why would investors invest in your company over someone else's? In this article, we'll go through some examples of good and bad competitor slides so that you can understand how to make yours stand out from the rest.
Do your homework
Your competitors are a good source of information for your slide deck. You can learn about their products, pricing models, and customer acquisition strategies. They may have the same goal as you (e.g., to disrupt an industry or to create a new product), but they may approach it differently because they have different resources and constraints than you do.
Use the information from your competitors' slide decks to understand how they define success—their metrics will likely be different from yours, so don't compare yourself against them in this regard! After all, if one company defines success as "100% penetration into the market" while another defines it as "10% more sales than last quarter," then who's right? Both are equally valid definitions of success in their own minds; it depends entirely on what matters most to each company's long-term goals (and maybe even its investors).
You also need to understand whether your target audience cares about these companies at all—if not, there's no point in highlighting them at all.
Look beyond valuation
Valuation is important, but it's not the only thing you should be highlighting.
You'll want to draw attention to other ways that your company stands out from the competition. This can include:
- The way that your product or service is better than the competition's
- How much faster/cheaper/easier it will be for users to use your product or service than their current options
- The additional benefits of using your solution as opposed to others
Talk about what makes your company unique
A key aspect of competition slide creation is highlighting what makes your company unique. This can be as simple as listing the unique features and/or value proposition of your product, or it could entail discussing how you serve a unique customer segment.
When creating a competition slide, think about all of the ways in which your startup differentiates itself from its competitors. What makes you special? Why should investors choose to invest in you over other startups?
Show how you add value, not how others don't
You have to show how you add value, not how others don't.
Your competitors may have the same problem that you are trying to solve, but they probably haven't solved it in the way that you will. You'll want to show what makes your company different from the competition. Are there any unique features? Does one offer more convenience or better quality than another? Can yours be used in a variety of situations? What is unique about your product or service?
It's important that your competition slide show what makes you stand out from your competitors
- You should only include the companies that are most relevant and competitive to yours, since this is not a complete list of all companies in the space.
- You do not need to show any more than three to five direct competitors, unless there are multiple products or services being offered by each company. If this is the case, then it's acceptable to add some others so that they're represented fairly.
Our final words of advice for creating a truly unique competition slide are to do your homework and make sure you have the facts straight. We’ve seen plenty of slides from startups that seem confident in their valuation, but when you look at the numbers behind them, there’s just no way they could be correct. Likewise, if all you have to say about your competitors is that they don’t do things as well as you do, then maybe it would be better if we didn’t know about them at all! With our pitch deck services we offer a package which included all these points down to the smallest detail.