What We Learned From Analyzing 150+ GP Pitch Decks With A.I.
In an increasingly crowded market, where performance is only one of many factors for an LP to consider, are GPs successfully differentiating themselves from their peers when it comes to positioning and pitching?
This was a question we posed to ourselves earlier this year. To help answer it, we conducted a few experiments using artificial intelligence (AI), natural language processing (NLP), and more straightforward statistics.
What’s in a word?
One of the key experiments was to explore how semantically similar the decks were: were words like “top quartile” being over-used? Was the use of common superlative words and phrases pervasive and therefore limiting differentiation?
For this experiment, we focused on five keywords, picked on anecdotal evidence of phrases used to express positivity or superiority: Top Quartile, Top Quality, Best in Class, Trusted, and Leading.
For each deck and each keyword or phrase, the analysis used natural language processing and lexical relations to calculate a “Similarity Score.” Lexical relations are words or phrases that are semantically similar to each of the five selected keywords and phrases, in layman’s terms: synonyms. The Similarity Score represents the correlation between the keyword or phrase (and its lexical relations) and each individual deck.
Less than a quarter used “top quartile,” but other phraseology had high correlation
It seems that explicit claims of top quartile performance are not as pervasive as the long-running industry joke would suggest. In the sample set, the term appeared in only 23% of decks.
However, other phrases showed high frequency of usage and correlation in how they were used. As shown in the heatmap below, “Top Quality” and semantically similar terms were used frequently and had strong correlation across the sample. Indicating the term is not a differentiator for GPs.
Similarity Score Heatmap
Access the full report to get more analysis and insight on phraseology in pitch decks, the use of quantitative metrics to speak about performance and value creation, and what the most common length and structure of pitch deck was