Do you know that $254 billion was invested globally into startups in 2018? Would you want a few of that cash invested into your personal enterprise? We’re going to guess that you’d, and top-of-the-line methods to make this occur is by making a pitch deck that connects effectively with goal buyers.
Table of Content
What’s a pitch deck? Effectively, it’s a presentation used to supply your viewers with an summary of your marketing strategy.
A pitch deck tells a narrative. It introduces you and your organization, demonstrates marketability and lays out the arduous numbers.
Growing a pitch deck that connects with buyers might be the distinction between receiving tens of millions in funding or sitting on the sidelines for months, knocking on doorways and attempting to achieve traction.
It’s an vital step, particularly if the one factor sitting between you and launch is extra capital, and it may be intimidating.
Right now, I’m going to interrupt down an easy-to-follow pitch deck formulation that you should use for placing collectively your subsequent investor presentation.
Let’s get began:
Right here Are The Key Pitch Deck Parts
In our expertise, most seed stage buyers concentrate on three fundamental pillars: market, folks and product.
One of many first stuff you wish to do is decide the scale of the market and the share you could possibly acquire. With out this, you can’t be positive you’ve gotten a sound enterprise mannequin, and also you gained’t be thought of by buyers.
Startups want to know how a lot worth they will seize at a per-unit degree. And that is referred to as unit economics of scaling.
You’ll additionally wish to have a look at any early main indicators of capturing this market share, and the way this pertains to the worth of 1 buyer . The LTV is the typical income a buyer is predicted to make whereas CAC is the typical expense of gaining that buyer.
If you clarify your concept, you might want to clarify what drawback it’s fixing. What are your prospects’ ache factors?
Sure, some merchandise don’t repair any issues, however one of the best ones do. For instance, nutritional vitamins are nice, however folks really want painkillers to operate.
To have an amazing painkiller, you might want to perceive the ache. Individuals are much less keen to pay for one thing they merely like, or that performs an arbitrary operate, than they’re one thing they honestly want. Understanding the ache and understanding what it takes to repair it, is essential to constructing the suitable app. In your pitch, you wish to show how your app satisfies your viewers’s wants.
Ask your self how your startup is positioned to assist folks’s ache factors. The higher you’re at with explaining the issue, the extra convincing you may be.
Be a painkiller, not a vitamin.
Subsequent, it would be best to decide a product-market match and what main indicators you’re utilizing to gauge it. Proving this confirms that you’ve recognized a goal buyer and may serve them with the suitable product.
Throughout your presentation, you additionally wish to spotlight your group and the abilities, expertise and community they bring about with them. Place a heavy emphasis in your robust inner dynamics – highlighting work ethic, teamwork and character.
Their impressions of your group could also be simply what an investor must persuade them you’ve gotten what it takes.
Bear in mind, each pitch deck will likely be distinctive, however the ultimate construction will weave numerous elements of those three groupings into the slides. Right here, we break down a typical circulation:
Slide #1. Cowl Slide
Your first slide offers you a chance to set the stage accurately. The aim of this slide is to set the tone for the presentation and get buyers’ consideration.
You don’t wish to cram an excessive amount of on this slide both. The slide ought to embody your brand and tagline, web site, contact electronic mail, the identify of the corporate the deck is ready for, and the date.
Slide #2. Your Story
You’ve most likely heard the saying “details inform, however tales promote.”
Storytelling is a strong method that ought to be integrated into any presentation, and that is very true for a pitch. You wish to type a compelling narrative and take these potential buyers with you on a journey – so begin by telling them (and displaying them) what you’re all about. There’s a human behind each profitable product – don’t be afraid to get inventive and present them who that’s!
Slide #3. Your Worth Proposition
What’s your model/product all about, how does it serve your prospects, and why is it higher than the competitors?
Your reply is your worth proposition.
A price proposition tells the market why they need to select you. To the identical tune, it tells buyers why they need to make investments in you.
For instance, Lyft targets two teams of individuals with two distinct worth propositions. One speaks to those that wish to get a trip, whereas the opposite speaks to those that wish to present them.
Slide #4. The Ache
On your product to in the end succeed, it wants to resolve an present drawback. What’s your product providing that’s leaving a possible consumer in a greater place than they have been earlier than they began utilizing it?
The higher you’re at explaining what the issue is, the extra profitable you may be at convincing buyers that the market is in want of your resolution.
Slide #5. The Resolution
The place there’s an issue, there’s an answer.
Now that you just’ve shared the issue, you may current the answer and the way your product fixes it.
Present the way it can remedy a buyer’s problem. Showcase the options that make it stand out. And spotlight how your product is exclusive and stands out from the competitors.
Slide #6. The Market
Subsequent, you’ll wish to spotlight your market dimension and product-market match. This demonstrates the potential worth the market can have for your corporation.
When explaining your market dimension, you wish to keep away from claims that promise massive returns. Quite, guarantee your pitch deck highlights segmented estimates, like:
- Whole Accessible Market (TAM): The full market demand for a services or products.
- Serviceable Accessible Market (SAM):Which a part of the TAM that your services or products targets in your geographical space.
- Serviceable Obtainable Market (SOM): The a part of your SAM that you may seize.
You wish to define not solely what the market appears like at the moment, but additionally what it’s forecasted to seem like sooner or later—the way it’s projected to develop.
Slide #7. Your Product
Right here is the place you formally share what you’ve been constructing.
To make it efficient, it is best to add sketches, wireframes, screenshots, and so forth. You also needs to, embody an outline. When you’ve got a prototype to share (which I extremely suggest), that is the purpose the place you’d wish to pause and conduct your demo.
Product demos present a chance so that you can improve the standard of your pitch. When buyers can see the app in motion, they will acquire a greater understanding of its worth and potential, by offering further context on the way it will obtain what you’ve already highlighted from an answer standpoint.
Slide #8. The Product Roadmap
A product roadmap is a visible that lays out the evolution of your product over time. The roadmap offers particulars on what the event group is constructing, timelines of options, integrations, and so forth.
Slide #9. Your Imaginative and prescient
It is a fast overview of what you need your organization to be and the way you wish to get there. You need it to be brief and candy, like a 20-second elevator pitch.
Slide #10. A Monetization Plan
In the event you’re anticipating buyers to shell out critical money in your product, you’re going to wish to spotlight how you propose to make them cash in return. Whether or not you propose to cost customers to obtain your app or discover different monetization methods, you wish to deal with this instantly.
Slide #11. Traction
No, traction doesn’t imply the treads in your winter tires. On the planet of startups, it’s referring to the success you’ve seen to date – proof that you’re making strikes towards your unique hypotheses.
Have any successes to brag about to date? Share them in your pitch!
Often, the easiest way to current that is as a graph which reveals what number of prospects you’ve gotten and the way a lot they’ve been spending in your product. You need it to show progress over a time period.
However it’s not all about income, maybe your progress up to now is measured by downloads or sign-ups.
Slide #12. Your Prospects
Have paying prospects already? Present them off by mounting their logos on the display screen to provide your self a lift in credibility.
Slide #13. Your Group
Use one among your closing slides to focus on the group members which are bringing this cellular app to life. Share their pictures and bios, and show the experience they bring about to the desk.
Slide #14. The Aggressive Panorama
The corporate’s rivals will all the time be a problem for buyers. You wish to differentiate your self from the remaining in order that they perceive what makes your corporation distinctive.
To acknowledge your consciousness right here, you wish to embody a slide that plots your efficiency towards that of your largest rivals. The metrics chosen are outlined by customers within the present house, which means displaying a worth aggressive benefit. Begin with axes which are normal in your business – for an app, your axes could be low worth vs. excessive worth, or hybrid app vs native app.
Slide #15. Funds Being Raised
Okay, time to ask for the money.
Even in case you have an concept of how a lot capital you’re seeking to safe, present a goal vary relatively than a certain amount. For instance, if you need to lift $6 million, it might be ultimate to place a variety between $3 million to $6 million. By giving buyers a variety, you’re opening your self as much as entice as many individuals as attainable.
And in case you have already raised funds up up to now, be sure you embody how a lot, the place it got here from, and the place will probably be used. Likewise, you’ll wish to clarify how you propose to make use of any of the brand new funds you’re requesting (for gross sales, improvement, and so forth.).
Slide #16. Your Financials
One other factor buyers are going to be involved about is your organization’s present monetary state of affairs.
The “Financials” slide typically contains:
- Three to five-year monetary projections
- Unit economics of scaling
- Lifetime Worth (LTV) to Buyer Acquisition Value (CAC)
- Burn price
- Key metrics which are vital to your organization
- Whole income and bills
Be sure your projections are sensible. You don’t need potential buyers to query them.
Slide #17. Your Contact Data
Simply depart the fundamentals: Your electronic mail, telephone quantity, and a secondary contact individual.