As an investor, I'm constantly on the lookout for data points that will validate the idea and the opportunity. In the elusive world of early stage startups, data is few and far in between, and too often founders don’t spend enough time collecting and backing things with data. So any time a founder presents data, I pay very close attention.

‍

Now, while in general, sharing data points can make you stand out, here are 3 often overlooked data points that I think any deck should include.

‍

1. Value

Many founders are familiar with the 10x rule: the notion that for a customer or user to truly embrace a solution, it must offer benefits that are ten times better than existing alternatives. Despite this understanding, a significant number of founders overlook the importance of substantiating this claim with concrete evidence in their presentations. Instead, they often resort to mere storytelling, hoping that investors will take a leap of faith and recognize the inherent value in their proposition.

This approach is a big mistake. ❌

‍

Investors are inherently drawn to data-driven assessments that quantify the potential value and adoption of a product or service. By providing clear, measurable evidence of how their solution exceeds existing options by a factor of ten, founders can significantly enhance their credibility and appeal to potential investors. It's not just about telling a compelling story; it's about backing it up with hard numbers that demonstrate the transformative impact of the proposed solution. Therefore, failing to quantify the 10x value represents a significant oversight, as it could be the decisive factor in securing investor interest and support.

‍

2. Sales cycle

Early stage investors want (and need) to see a potential for quick results and a fast traction. Their goal is to ensure that the startup they're considering is “fundable” and capable of progressing to the next funding round in optimal condition. A crucial determinant of this viability lies in the length of the sales cycle.

‍

A shorter sales cycle is indicative of the startup's ability to swiftly convert prospects into customers, thereby generating revenue more efficiently. By presenting concrete data on how swiftly the startup moves prospects through the sales funnel and converts them into paying customers, founders can instill confidence in investors regarding scalability and the company’s ability to hit revenue milestones in preparation for next fundraising rounds. Moreover, a short sales cycle not only accelerates revenue generation but also serves as a compelling validation of the startup's value proposition, further solidifying its appeal to future investors.

‍

Furthermore, proving a short sales cycle length not only enhances financial performance but also underscores the pain point, market need and the 10x value mentioned above.

‍

3. Pipeline

‍As the saying goes, “the proof is in the pudding”. For startups, the proof is in the sales numbers.

However, early stage startups are typically too early to show a robust revenue stream. Instead, they can show a robust pipeline of customers. It helps the investor to:

• Understand and assess the sales process stages
• Feel comfortable with the team’s focus on GTM and ability to sell.
• Gain more confidence in the customer need, value and demand.

✅ Bottom line:

While early stage fundraising tend to be very qualitative in nature, I think that there are opportunities to bolster the pitch with key data points that can be the difference maker.

‍