Investor Decks: Should You Still Be Using the Sequoia Template
In the world of fundraising, first impressions are everything. One of the most popular structures for investor decks is the Sequoia template, a format that’s been trusted for years by startups around the world. But is it still the best choice in 2024?
With new trends and evolving investor expectations, let’s dive into whether the Sequoia template is still the gold standard and explores other options.
Pitch Deck vs. Investor Deck: Which Template to Use When?
Before diving into the Sequoia template’s pros and cons, let’s clarify the difference between a pitch deck and an investor deck. While these terms are often used interchangeably, each serves a different purpose:
Pitch Decks
Designed for introductory meetings, demo days, or early-stage pitches (seed decks), pitch decks focus on grabbing attention and creating excitement. They’re often short (around 10 slides), visually engaging, and high-level in detail. The goal is to hook the audience and leave them wanting more.
Investor Decks
A more detailed, data-driven deck, meant for serious investors who are evaluating the company more deeply. Investor decks include financial projections, metrics, competitive analysis, and product details. They’re typically used in follow-up meetings after initial interest is shown and are designed to answer more in-depth questions.
So, where does the Sequoia template fit in? This classic structure can work for both pitch and investor decks with some customization—but it may need updates to meet modern investor preferences.
The Sequoia Template: What It Covers and Why It’s Popular
The Sequoia template covers essential components that every investor looks for in a pitch:
Problem
Solution
Why Now
Market Size
Product
Business Model
Team
Financials
Why It’s Popular
The Sequoia template has been a go-to because it’s proven and straightforward. For early-stage pitches, it offers a clear, trusted framework that’s easy to follow, saving founders from spending excessive time and resources reinventing the wheel.
It’s simple, logical, and perhaps most importantly, familiar to investors, which could be strategically advantageous due to the limited amount of time investors typically spend with a deck. Each slide addresses an essential aspect of a startup’s business model and market opportunity, keeping the focus on what matters most.
I have personally never seen a deck, pitch or otherwise, that was only 8 slides long so there is certainly room to expand, particularly in the business model and financials sections, but the flow should remain the same.
When the Sequoia Template Works Well
The Sequoia template is still highly effective, especially in the following scenarios:
Early-Stage Startups
The Sequoia format’s simplicity is well-suited for startups with straightforward business models. Its structure allows founders to cover all critical areas without overwhelming investors with too much detail.
Initial Meetings
When clarity and brevity are key, the Sequoia template provides an efficient way to communicate the essentials. Its logical flow and focused slides make it easy for investors to quickly grasp the value proposition.
Companies with Clear Market Positioning
If your product and value proposition are easy to explain, this template works well to keep things focused without getting into too much technical depth.
Why the Sequoia Template Might Be a Bad Fit
While it’s a popular choice, the Sequoia template does have some drawbacks that may limit its effectiveness particularly as investor expectations shift.
Lacks Emphasis on Storytelling
Investors increasingly value storytelling as a way to connect emotionally with a company’s mission. The Sequoia template can feel overly formal, missing out on the chance to create a compelling narrative that makes a lasting impression.
Limited Room for Differentiation
Since the format is widely used, it can make it difficult to stand out if your competitors are using a similar structure. It doesn’t always allow for unique slides or creative elements that showcase your brand’s personality.
Not Ideal for Complex Businesses
For companies in industries like biotech, clean tech, or advanced technology, the template’s standard structure lacks the space for explaining technical details or regulatory paths, which are crucial for investor understanding.
Minimal Data Visualization
It doesn’t emphasize data visualization, a key element in modern investor decks. Visuals can quickly convey metrics and market insights, especially for investors with limited time.
These limitations have led to the rise of new trends and alternative formats that give startups more flexibility and a greater ability to personalize their pitch.
Emerging Trends in Investor Deck Formats
There is a definite trend toward flexibility and customization, making the Sequoia template less of a universal standard. As investor expectations evolve, so do the formats and best practices for earning their attention and their capital.
Storytelling as a Core Element
Investors today are drawn to companies that tell a compelling story. More founders are opening with a narrative that brings their mission to life, creating an emotional connection and crucially, a cultural context, before diving into the specifics.
Data Visualization and Visual Appeal
With short attention spans and a preference for easily digestible information, decks with strong visuals—like charts, infographics, and icons—are becoming more popular. They make it easier for investors to quickly understand metrics and market opportunity.
Shorter Decks with Optional Appendices
Some investors prefer a 10-slide deck with the essentials, followed by an appendix or separate financials, projections and other documentation for deeper dives. This approach keeps the initial presentation concise but allows room for follow-up if investors are interested.
Customization by Industry
In sectors like SaaS or FinTech, investors may focus more on traction metrics, while biotech and clean tech investors need regulatory and technical insights. Tailoring decks with industry-specific requirements for audiences likely to be investing in only a handful of sectors that they understand deeply, is becoming the norm.
Notable Sequoia Template Alternatives
Guy Kawasaki's 10/20/30 Rule
Guy Kawasaki, a renowned venture capitalist, advocates for a pitch deck comprising 10 slides, delivered in 20 minutes, using a minimum 30-point font size. This approach emphasizes brevity and clarity, ensuring that presentations are concise and impactful.
Y Combinator's Seed Deck Template
Y Combinator, a leading startup accelerator, provides a simplified template focusing on key aspects such as problem, solution, market, traction, and team. This format is designed to be straightforward, helping startups communicate their value proposition effectively.
Point Nine Capital's Pitch Deck Template
Point Nine Capital offers a template that includes slides on problem, solution, market size, product, business model, competition, team, financials, and funding needs. This structure is similar to Sequoia's but with slight variations to cater to different investor preferences.
Customized Templates from Design Platforms
Platforms like Visme, Canva, and Pitch provide a variety of customizable pitch deck templates. These templates often include slides for business models, go-to-market strategies, target audience analyses, and key metrics, allowing for a more tailored presentation.
Storytelling-Focused Approaches
Some startups opt for a narrative-driven pitch deck that emphasizes storytelling to engage investors emotionally. This approach often includes a compelling opening story, visual data representations, and a focus on the company's mission and vision.
Industry-Specific Templates
Certain industries may require specialized templates that address unique aspects such as regulatory considerations, technological complexities, or market dynamics. For example, biotech startups might include detailed slides on clinical trials and regulatory pathways, while SaaS companies might focus on user acquisition metrics and churn rates.
Best Approach: Adapt the Sequoia Template for Today’s Investor Expectations
If you decide to use the Sequoia template, keep the flow of content true to the original but consider some adjustments to make it more aligned with current investor preferences. A deck that runs 14 to 15 pages with more comprehensive information in an appendix, still gives investors the format they expect so they can find what they need quickly.
Add a Strong Opening Story
Start with a narrative that draws investors into your mission and vision, helping them connect with your “why.”
Incorporate Visuals and Data
Use charts, infographics, and visuals to convey market size, traction, and growth. This adds clarity without extra words.
Highlight Product Differentiation
If your product has unique competitive advantages, consider adding a “Differentiation” slide to make these points clear.
Use an Appendix for Detailed Data
Keep the main deck concise, but add an appendix for follow-up meetings where investors can explore metrics, projections, and analyses in more depth.
Customize Based on Audience
If you’re pitching to specific investors or sectors, adjust the deck to address their interests. For instance, a FinTech investor might care more about growth metrics, while a clean tech investor may need regulatory timelines.
Build a Short Deck and a Long Deck
Building a longer deck that contains all relevant information is an acceptable strategy provided you have a shorter, more narrative-driven deck that teases your potential and gives you a better shot of getting in the room.
Get Help with Your Deck
Creating a compelling investor deck isn’t everyone’s strength—especially as companies move into later funding rounds, many opt for professional support to make their pitch stand out.
Today’s investor decks benefit from strong messaging hierarchies that support the storytelling, visuals, and customizations reflective of your company’s unique strengths.
Get Your Deck Written and Designed in a Week
Contact us for a brand or investor deck audit, and we’ll help ensure your deck aligns with evolving investor expectations.