A new report reveals 95% of startups use AI in their pitch communications, but investors are turning away from generic AI-generated decks. The over-reliance on automation is creating friction in the fundraising process.
TL;DR
- 95% of startups use AI in their pitch communications, but investors are rejecting generic AI-generated decks.
- Investors report that 90% of investor outreach fails due to irrelevant or identical pitch decks.
- Experts emphasize that AI should assist with scale, not replace genuine founder narratives.
What happened
A report by Working In Your Shoes found that 95% of startups use AI tools in their communications, particularly in pitch decks. However, investors are increasingly dismissing these decks as they lack personalization and authenticity.
Jan Verkooijen, an investor at New VOC Management BV, noted that about 90% of investor outreach fails for reasons unrelated to the pitch itself. Founders often send identical pitch decks to venture capitalists who do not invest in their specific stage or sector.
Startup founders recognize the risks of over-relying on AI. A survey highlighted concerns such as the loss of personal touch (64%), reduction in critical thinking (62%), identical messages (54%), and the spread of misinformation (34%).
Why it matters
Investors and tech leaders emphasize that automation cannot replace authentic founder narratives. Ran Wei Baker, senior director at Microsoft for Startups, noted that AI should assist with scale rather than replace genuine messaging.
Shaloo Garg, managing director for the AI startup ecosystem at Microsoft, explained that AI handles 80% of the volume while humans handle 80% of the value. AI excels at patterns and behaviors but struggles with high-stakes ambiguity.
Early communication and founder visibility are critical for startups. Venture capitalists recommend engaging early on platforms like LinkedIn and X, as well as in tech hubs including İngiltere and the US.
Key facts
- 95% of startups use AI tools in their communications, according to Working In Your Shoes.
- 90% of investor outreach fails for reasons unrelated to the pitch itself, per Jan Verkooijen.
- 64% of founders cite the loss of personal touch as the top risk of AI-generated pitches.
- 62% of founders point to a reduction in critical thinking and judgment.
- 54% of founders worry that messages sound completely identical.
- 34% of founders fear the spread of misinformation and AI-generated fake content.
- 75% of startups wait until they generate revenue before launching public relations efforts.
- 18% of startups start public relations efforts at the pre-seed stage.
Context
The widespread adoption of AI tools has sparked concern across the venture ecosystem. Gianni Giacomelli, a founding partner at kAIgentic, stated, 'In the era of AI, everyone is focused on what to do with AI. But the real question is what do we do with people.'
Theo van Leest, chief executive at Aqara Investment, noted, 'The key question is not about what AI can do, but whether humans are prepared to stay in control of the decisions it informs.'
Sunshine Burri, an international startup ecosystem expert, summarized the competitive landscape: 'AI has made building great products faster than ever. But if I can build it, chances are 5 other people are building it at the same time. That's where smart PR becomes a competitive advantage as it builds credibility and trust.'
