Authors: Muntaha Sabuwala
Abstract: This study investigates how effectively Indian early-stage startups communicate investment-relevant information to venture capital investors through pitch decks and whether systematic signal gaps reinforce information asymmetry in fundraising markets. Analysing 50 startup pitch decks across Pre-Seed to Series A stages and sectors including Deep Tech, SaaS, FinTech, HealthTech and AI/IT, the research applies a manually coded binary rubric of 19 variables grouped into five VC evaluation dimensions: product differentiation, market opportunity, traction, financial viability and team credentials. The findings reveal significant imbalance in communication quality, with team and market signals appearing substantially more frequently than financial signals, while exit strategy communication remains nearly absent. Although most startups address all major investor evaluation areas, critical gaps persist in articulating competitive advantage and growth dynamics. These findings suggest that current fundraising communication practices only partially mitigate information asymmetry, increasing investor uncertainty, due diligence costs and the risk of inefficient capital allocation decisions.
DOI: https://doi.org/10.5281/zenodo.20428317
