Yes, your pitch deck needs a competitor slide. Every business operates with direct or indirect competitors, and omitting this slide sends negative signals to investors about your understanding of the market and preparedness.
Why the competitor slide is critical for pre-seed and seed stage startups
The competitor slide becomes most critical during the pre-seed and seed funding stages. Investors consider the competitive slide a "make or break" slide during pitch presentations. Your company has not established market credibility at this early stage, making it essential to demonstrate market awareness through competitor analysis to build investor confidence.
Pre-seed and seed startups face heightened scrutiny because investors evaluate whether founders understand the landscape they plan to enter. The competition slide serves as a conversation starter, allowing investors to gauge whether the founder is truly well-versed in their industry.
Without proven traction, early-stage companies must compensate by showing deep competitive intelligence.
What happens when you omit the competitor slide
Missing a competitor slide creates multiple red flags for investors. Investors know that a lack of competition means either there's no demand or you're unaware of the competition. This perception can immediately undermine your credibility during fundraising conversations.
Investors develop three primary concerns when founders claim they have no competitors. First, they question whether you understand your market positioning and the forces at work in your industry. Within seconds, one of the biggest red flags appears in the investor's mind because there is no venture without competition.
Second, they may assume you failed to conduct adequate research on your competitive landscape.
Third, investors might perceive overconfidence about your idea, suggesting you underestimate market challenges.
The absence of competitor analysis signals you are operating without complete market visibility. Investors interpret this as moving blindly through an industry you should understand thoroughly before requesting funding.
What to include in your competitor slide
Your competitor slide should include both direct and indirect competitors, along with the key features that differentiate your solution. Include your direct competitors in your analysis, with a thorough review of their market share, pricing plans, and other key details. This demonstrates you have conducted thorough competitive research.
Investors firmly believe that founders need to know their business model, pricing, and funding history beyond just features and benefits. Present the specific advantages that position your solution differently from existing market players. Focus on elements where your approach solves customer problems more effectively than current alternatives.
Investors advise against choosing irrelevant points of comparison that are not a driving force for the target market to switch from their current alternatives. Select comparison criteria that matter to customers when making purchasing decisions.
Success rate of pitch decks with competitor slides
80% of pre-seed and seed pitch decks that successfully raise funding include a competitor slide. This statistic reflects the standard investor expectation that founders demonstrate comprehensive market knowledge before securing early-stage capital.
When you can exclude the competitor slide
Skipping the competition slide becomes less detrimental when founders have interacted extensively with investors outside the formal pitch deck presentation. These prior conversations may have already addressed competitive positioning, reducing the need to dedicate deck space to this analysis.
This exception applies primarily when investors already understand your market position through prior discussions, meetings, or relationship-building. The competitor slide remains important for cold pitches or first-time investor meetings where you have not established this foundational understanding.
Why competition validates your market opportunity
No competitors might mean no market, while multiple players fighting means proven demand.
The presence of competitors strengthens your investment case by demonstrating that customers are willing to pay for solutions in your category. Without competition, there may be no market because if there's demand for something, innovative minds are quick to try and make a profit from it.
Your competitor's slide transforms from a defensive necessity into an offensive opportunity. Rather than fearing competition, use this slide to show that your startup has the insight, innovation, and execution to stand apart. This approach positions you as a strategic thinker who understands market dynamics rather than an unprepared founder hoping for easy success.