On deck

When it comes to meeting with investors, a simpler pitch deck is better

Pitch decks in San Francisco and New York tend to be simpler. Getty Images

There's something about California pitch decks that Houston companies can learn a thing or two from. Most of them are simpler and highlight those few key points that really show a company might be a success. Simpler, in this case, is good.

However, the investor pitch deck doesn't get you the investment, the deck gets you the meeting. And when an investor is considering a company to meet with, they don't want to comb through scientific detail before getting to know the entrepreneur. It's the entrepreneur who we want to talk to. We want to see and hear their ability to communicate the complex information.

The simple pitch deck is crucial for the entrepreneur to get that initial meeting. It forces the entrepreneur to showcase their best and most important key metrics. Then, it's the entrepreneurs live performance is the real key to attaining an investment.

In Houston — and in other more conservative towns — we tend to see pitch decks that have a lot more information density on each page. It ends up being a traditional business plan, but in landscape orientation instead of portrait orientation.

A lot of more traditional investors in cities like Houston must prefer this additional detail in the deck, right?

Perhaps, but the trend I see is that cities where more venture capital dollars are raised (seed-stage and otherwise) tend to have simpler pitch decks for that initial outreach. San Francisco's are simpler than New York's. New York's are simpler than Austin's. Austin's are simpler than Houston's. And so on.

Maybe I am wrong to recommend having the simpler pitch deck in an environment where there are fewer investors and fewer deals. However, when the simpler pitch deck can be made by cutting away parts of the longer more complex one, shouldn't entrepreneurs be able to create this pitch deck? The process is boiling down the core message, and who doesn't want to work on that?

Work on that elevator pitch and work on that short pitch deck. Of course you need to detail, but sometimes you need the simplicity.

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Mark Friday is an associate leading venture capital investments at Houston-based Cathexis Holdings LP.

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Building Houston

 
 

Capital Factory's Houston HQ will be in The Ion. Photo courtesy of The Ion

A company that supports entrepreneurship and startups across the Lone Star State with mentorship and funding has announced its new homebase in Houston.

Capital Factory has revealed a new programming partnership with The Ion. Through the collaboration, Capital Factory will host programming, events, and resources within the innovation hub to grow, educate, and support Houston-based startups and entrepreneurs.

"Capital Factory's presence at The Ion will further expand the opportunities for startups and innovators in the Houston region, while strengthening an important pillar of the Texas Startup Manifesto," says Joshua Baer, founder and CEO of Capital Factory, in a news release.

Capital Factory was founded in Austin in 2009 and boosts on being the most active investor in Texas, deploying smaller investments to a multitude of early-stage startups. According to Crunchbase's data, the entity has invested in over 160 companies with 20 exits. Capital Factory officially entered the Houston market in 2019 and doubled down its presence last year when it merged with Station Houston.

Now, with its Houston headquarters moving into The Ion, the two innovation partners will take an inclusive approach to creating connections between innovators, mentors, investors, and markets, per the release.

"We are thrilled to have Capital Factory as a programming partner at The Ion" says Jan E. Odegard, executive director of The Ion, in the release. "The Ion seeks to work with key partners and established brands to help build a rich and inclusive set of startup services that can support all innovators and startups wherever they are in their entrepreneurial journey. Capital Factory brings a proven track record for providing entrepreneurs with services and investments that brings great value not only to The Ion ecosystem, but also to the entire Houston innovation ecosystem."

Capital Factory's first event at The Ion will be Open Coffee on November 16th followed by Open Coworking all day, Baer adds in his statement.

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