Series entrepreneur | Founder of bonapp.eco | Philanthropist | Chief father officer.
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Having a strong and engaging pitch deck is essential. For a startup looking for investors, it’s like having a dating profile: your pitch deck is the very first image investors get of your team and the company. And in business, first impressions do matter, a lot.
I have been an entrepreneur for 15 years and half of that time I have also been an angel investor. I want to share my humble experience from both sides about what I think is a great pitch deck.
Making a strong pitch deck
Be focused. Your goal with a pitch deck is to showcase your solution and convince investors that your startup has a good chance of meeting customer needs and scaling.
Be short. Think 12 to 15 slides, no more. A pitch deck is not a complete business analysis. It’s an entertainment. You will have plenty of time to go into detail during the business plan review and due diligence phases, which come later.
Harness the power of storytelling. Remember, people love stories, and in this case, investors want great stories to be told with passion and conviction, backed up by facts and figures.
Be confident and positive. Always end your pitch deck presentation on a high, bold and memorable note.
Don’t reinvent the wheel. Angel investors and venture capitalists see a lot of pitch decks. To get their attention, don’t reinvent the wheel. I recommend following a standard 12-slide structure for your pitch deck.
Building your pitch deck
Slide #1: Introduce the team. I always recommend the first slide of a pitch deck as the presentation of the team, because the team is the asset of a startup. In my experience, this is often the most important thing for any investor. Painting a perfect picture of your founding team is not the goal here. However, keep in mind that investors want to see if the team members are strong, reliable and have the right expertise. In addition, it is important to demonstrate that the founders’ skills are complementary.
Slide #2: Reveal a painful problem. Without problem solving, there is no startup. If your business doesn’t solve a problem, it won’t survive. The ‘problem’ slide is about describing a problem or challenge. Usually, the bigger the problem, the bigger the solution. Describing this problem should sound like an exercise or warning, as it can lead to investors becoming interested in your solution.
Slide #3: Reveal your solution. Now it’s time to reveal your solution. Even if there are already similar solutions, explain how yours is different. Summarize your solution in one to two slides.
Slide #4: Expose the market potential. At this point you described the ‘what’ and the ‘how’. Now it’s time to reveal the “true”. The potential market size is important to investors because they want to immediately know the scalability opportunities – local, regional and international.
Slide #5: Use your 15 seconds of fame. If you have a product demo, now is the right time to continue to arouse curiosity and show the value proposition to the user. Photos are good, but I’ve found a one minute short video is even better.
Slide No. 6: Explain your business model. This is another important aspect of your pitch. Explain to investors how you want to monetize your idea.
Slide #7: Share your go-to-market strategy. Explain how you envision the customer journey and what your marketing funnel looks like. Give examples of how to attract exposure, spark interest, and seal the deal.
Slide #8: Offer a competitor analysis. You also need to show that you are aware of the competition. Present what they do and what you do differently or better than them. Show that you have a clear understanding of what your competitors are doing, what their plans are, and what their threats and weaknesses are, while focusing on your strengths and opportunities.
Slide #9: Provide a timeline. Now is the perfect time to take stock of what you’ve accomplished so far. Next, you’ll need to outline what the next steps are, why you need money, and how you plan to expand. If you already have customer reviews, use them.
Slide No. 10: Present your financial projections. Present a projection of your financial plan for the next 24 to 36 months. Explain which key performance indicators you will be implementing (e.g. customer numbers, conversion rates, etc.). Show that you have done your homework and have a good answer to any question that may arise.
Slide #11: Specify the money you want to raise. Indicate on this slide how much money you plan to raise and what your business valuation is. Here I recommend listing the current valuation (the ‘pre-revenue’ valuation) and the ‘post-revenue’ valuation (which is equal to the pre-monetary value plus the money you’re raising).
Slide #12: Explain how you will use the money. Specify the investment areas of the funds you are raising. State how you will allocate the money by category, such as technology, sales, marketing and operations, as well as other areas of investment that depend on your type of business.
Final Thoughts
Keep in mind that the best pitch decks are simple and easy to understand, hence the importance of preparing yourself. Don’t reinvent the wheel. Remember: pitch decks are a great tool for carrying out your vision, not a colorful pompom to distract from what’s missing. With a clear picture of the problem you’re solving, how your solution works, and when they can expect their money back, investors will be more encouraged to take action.
Lastly, but most importantly, be humble. Investors don’t like boasting. You may think your solution is great, but let’s not forget that the world of startups is highly competitive, so always be humble and careful. Never be arrogant or condescending. Good luck.
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Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.