Latest / The Series A Show with Fexingo: Early-Stage Funding, Pitch Decks, and Startup Milestones / Why More Startups Are Raising Without a Pitch Deck
Transcript
- Lucas: So there's this quiet trend happening in early-stage fundraising that I think is worth paying attention to. More and more startups are raising money without a traditional pitch deck. Luna: Wait, no slides at all? Just walking in and talking? Lucas: Pretty much. Or they're relying on a data room, a product demo, and the founder's reputation. I'm talking about rounds where the deck is either a one-pager or completely absent. And it's not just for super hot AI startups either. Luna: I've seen a few of those. Usually it's founders who've already built something impressive or have a strong network. But is this really becoming a trend? Lucas: I think so. And part of it is market driven. Look at what happened this week with Shopify — stock up over 15% in five days. That kind of momentum makes investors hungry for anything in the e-commerce or SaaS space. When demand is high, founders can dictate terms, and one of those terms is 'I'm not spending two weeks polishing a deck.' Luna: Right, so it's a power shift. When capital is flowing, investors are willing to skip the formalities. But what does that actually look like in practice? Lucas: Let me give you a concrete example. There's a startup I've been following — they're in the logistics AI space. They raised a $5 million seed round earlier this year without a deck. The founder sent a two-page memo to about fifteen investors, hosted a few product demos, and within three weeks had term sheets from four of them. Luna: Three weeks is fast. What was in that memo? Lucas: From what I heard, it was basically: the problem, the solution, the team, a few key metrics—monthly recurring revenue, gross margin, customer acquisition cost—and then a clear ask. No market size slides, no competitive matrix, no 10-year financial projection. Just the essentials. Luna: And the investors went for it because the product was already working and the team had a track record. That makes sense. Lucas: Exactly. And the founder told me that skipping the deck actually helped them close faster. They weren't iterating on slide design or worrying about formatting. They were just having conversations. Luna: I wonder if this is more common in certain sectors. I know biotech startups often have thick data packages, not pitch decks. But for SaaS? Lucas: It's happening in SaaS too, but I think it's especially common in deep tech and AI. And interestingly, the ARK Genomics ETF is up almost 13% this week, which tells me there's a lot of enthusiasm for science-heavy startups. Those companies rarely have a polished deck anyway — they have research papers and clinical data. Luna: So maybe the deck is becoming a signal of how early you are. If you have a deck, you're still figuring things out. If you don't, you're ready to scale. Lucas: I think that's a fair way to put it. But I don't want to oversimplify. There are plenty of founders who still need a deck to tell their story, especially if they're first-time entrepreneurs without a network. The deck is a credibility tool. Luna: So what's your advice to a founder listening right now who's about to start fundraising? Should they ditch the deck? Lucas: My advice would be: start with a one-pager. See if you can get meetings without a deck. If investors ask for one, then build it. But don't spend three weeks on a deck before you've even talked to anyone. That's backwards. Luna: That's actually really practical. And I've seen founders waste so much time on design when the product isn't even ready. Lucas: Right. And the other thing is, if you do go deck-less, you have to be prepared to answer tough questions on the fly. There's no slide to hide behind. You need to know your numbers cold and be able to articulate your vision clearly. Luna: So it's higher risk, but potentially higher reward. If you pull it off, you look confident and competent. Lucas: Exactly. And I think we're going to see more of this as the fundraising environment evolves. Especially with tools like data rooms becoming standard, investors are getting comfortable evaluating companies without a narrative deck. Luna: One thing I'm curious about: does this approach work for later rounds? Like Series A or B? Lucas: I think it's harder. For Series A, you usually have more data and a longer story to tell. But even then, some companies are using a 'deck as appendix' approach — a short presentation with just the highlights, and then a detailed data room for diligence. I've seen a few Series A rounds close on a six-slide deck. Luna: Six slides? That's almost nothing. What were they? Lucas: Typically: problem, solution, traction, team, ask, and a timeline. That's it. No market size, no competition, no financial model. Investors who know the space don't need those slides. Luna: So it really comes down to knowing your audience. If you're pitching to a domain expert, you can skip the basics. Lucas: Exactly. And if you're pitching to a generalist fund, you might need more context. But the trend is definitely toward less polish and more substance. Luna: I think this is a great episode for founders to hear. Honestly, if today was worth a coffee to you, that's the link — buy me a coffee dot com slash fexingo. It helps us keep the show ad-free and focused on what matters. Lucas: Yeah, we really appreciate that. And we know most listeners just tune in for the content, but if you find value in these conversations, that's the simplest way to support us. Luna: Alright, back to the trend. Lucas, what's the one thing a founder should do differently if they want to try a deck-less raise? Lucas: I'd say: invest in your network before you need it. The reason these deck-less raises work is because the founder already has relationships with investors. If you're cold emailing a partner at a VC firm, you probably need a deck. But if you've been building relationships for months, you can send a one-pager and get a meeting. Luna: So the deck is a substitute for trust. When there's trust, you don't need it. Lucas: Exactly. And that's why I think the deck isn't dying — it's just becoming optional for those who've done the relationship work. Luna: Alright, that's a good note to end on. Thanks Lucas. Lucas: Thanks Luna. And to our listeners, happy fundraising.