The pitch deck is a core platform for fund raising. Its aim is to simply and clearly communicate the investment proposition to potential and existing investors. Clarity of the message is key since this will both inform the recipient and assure them that the team is able to communicate effectively to potential customers and partners. Raising capital from investors is difficult and time consuming. Therefore, it’s crucial that you absolutely nail the investor pitch deck and articulate a compelling and interesting story.
The aim of the deck is to get the investor emotionally involved and get to the next meeting and not to cover everything. Once the investor is interested there is plenty of time to cover the detail.
A typical deck is less than 20 slides, additional information can be put in a back up section which is only used to address specific questions should the come up. Use as much graphical content as possible to simplify complex issues but do not use gratuitous imagery since this can distract.
- Company Overview
- Mission/Vision of the Company
- Team
- Problem
- Solution
- Product
- Market Opportunity
- Customers & Traction
- Technology
- Competition
- Road Map
- Business Model
- Sales and Marketing Strategy
- Financials
- Investment
Taking these points in detail:
Company Overview
The first page after the cover should be 4-6 bullet points on the business, the problem it solves, the experience of the team, where it is located and any traction. The aim of this section is to frame the proposition and address the most basic questions upfront and enable the recipient to focus on the key messages.
Mission/Vision of the Company
A simple crisp single paragraph on the mission/vision of the company. This is the elevator pitch which again frames the discussion and sets goals. Avoid being bland, nondescript or imitating an existing successful model. The “Uber for…..” is to be avoided since it shows a lack of imagination and ambition.
Team
While the investor is ultimately investing in the team, it is best to let the talents of the team be self evident through the quality of the presentation. Just quickly identify the people in the room, their role and any relevant experience. I would not include a long description of any board members at this stage since it is the people in the room that have to deliver the results.
Problem
The best way to frame the business is to describe the problem it solves, who has the problem and the lack of a good current solution. Try to bring the problem alive through story telling and engaging the investors by making the problem as real as possible . Aim to address these three points: how big is the problem, why it is important, and who has the problem.
Solution
This section should articulate the proposed solution and why it is better than other solutions. Avoid overlap with other sections of the presentation such as the product or competition sections. Also consider the internal or do nothing solution since these are likely to be significant elements governing the rate of adoption for your solution
Product
This section should clearly articulate what the product or services is, why it is unique, who are the users, major product milestones, key points of differentiation and what additional features are planned. Try to use images, visuals, and videos to demonstrate simply and quickly why this is important.
Market Opportunity
Most investors want to invest in big opportunities with large untapped addressable markets. Define the market, its size and which parts you are addressing. This is a good opportunity to use graphics to simply communicate complex data.
Customers & Traction
Unless it is completely obvious who the customer is, use this slide to be specific. If possible use logos to illustrate names, this can indirectly give your proposition weight that might not be obvious from a generic description.
Technology
Identify if the technology gives a specific competitive advantage through intellectual property value or implementation. How will it scale and can it be simply replicated.
Competition
Competition is always a key point for investors since this will often determine the rate of adoption and/or the final market opportunity. Many markets are dominated by “do nothing” or “internal” solutions so address these to significant competitive elements. Describe how you fit into the competitive landscape and why you have an advantage. Use charts and graphs to simplify a complex competitive environment. Be aware that the competition will also be evolving so do not compare your future product with their current offering.
Road Map
Describe the current level of traction and explain why the product or service is being adopted. Investors will want to see external validation of your ideas as early as possible and by having market exposure, you will learn what really works in the real world. Customer traction is frequently the most difficult aspect for a new business and is critical for reducing risk, improving cash flow and validating the business model.
Business Model
Investors will want to understand the business model that underpins the proposition. This model will determine how quickly the business can become self sustaining and how much cash it will need. It will also demonstrate how mush of a grasp you have on the particular dynamics in your market, the cost of reaching customers and the cash flow implications of any payments cycle.
Sales and Marketing Strategy
Finding and winning customers can be the single biggest problem for most start-ups, so it is important to show that you have a good grasp of how to reach early reference customers and then build an active pipeline.
Financials
A summary of the financial pan, current cash burn and future cash requirements using graphics where possible. At this stage avoid giving to much detail
Investment
What are you looking for and what does the investor receive for his investment.
