Imagine this – you speak to a potential investor, and she asks you to set up a presentation to go over your product. To nail this presentation, you need a fantastic pitch deck. It needs to convince your audience that your service/product is worth funding.
A good pitch deck engages a potential investor in a conversation about your business, which will hopefully lead to an investment.
The goal of an entrepreneur is to raise money, but the main objective of a pitch deck is to get to the next meeting. It is meant to spark interest within potential investors because investments are almost never made after a single meeting alone.
So, it is critical to have a solid presentation that will get investors excited about your product. The standard structure of any pitch deck usually consists of these elements -
This section is crucial in determining if you can keep the investors interested throughout the presentation. This is where you present the basis for the problem you intend to address, along with your proposed solution in the form of a product/service.
The Cover Slide
This slide usually contains the name of your product with an impressive design theme. This does not contribute too much in terms of adding structure to the pitch deck. A minimalistic yet attractive design is the key towards grabbing investors’ attention.
Also read: Pitch Deck Presentation Templates
Unless you intend to solve some problem in the world by means of your startup, the climb to success is going to be quite steep. Summarize the problem using clear and concise language.
This is where you must focus on making investors empathize with your cause.
Come up with a relatable story to explain the problem - this will allow you to establish a real connection with your investors. If your business is meant for a different audience then, acknowledge it and make sure your premise remains strong.
The Solution -
Now that you have established the problem, thereby the need for a solution; you get to describe how your product/service is all set to disrupt the status quo.
The key to holding your investors’ attention is by making sure that you narrate a compelling story. The way to do that is by building up your problem and emphasizing how your product/service is coming to the rescue of everyone affected by it.
It is important to avoid the usage of complicated jargon here. State benefits instead of features; this will enable investors to bank on your product because benefits matter more to customers.
Why should anyone invest in your startup?
Nobody will bet on your product just because they like it - they need to be convinced that under your leadership, your startup has the potential to grow into a sizeable company which can eventually, get them a considerable return on their investment.
This can be done by figuring out the scalability of your startup by adopting either the “top down” or the “bottom up” market approach. Top down analysis is calculated by estimating the total market followed by your share in it. Bottom up sales approach evaluates where the product can be sold and a share of the sales that you can claim.
The primary function of this slide is to present your business strategy to investors. It must give them a broad insight into how you plan on generating revenue for your startup.
Present all the revenue streams that you already have/ plan to have and break them down to adhere to your product/service based on individual pricing. Highlight your USPs and how they will boost your business.
Utilize this slide to expand on who your target audience is. Discuss the total market size and where you plan on fitting in your startup. Emphasize on the scope of the problem you plan on solving and the scalability of your business.
Include data about how much customers are currently spending on services to get a grasp on the total size of your market. Divide your market into sections that can be addressed with various types of marketing and product offerings. Be cautious when you try to define your market because investors expect realistic numbers.
Every business has competition in some form; even if you are launching a service/product meant to solve an altogether new problem, your potential customers are using alternative solutions to solve their problems.
Describe how you fit into the competitive landscape and highlight differentiators that set your business apart from your competitors’. Talk about key advantages that your startup might provide in the form of a premium service or budget offering service that could undercut existing solutions in the market.
Describe why your team has the right set of people to build and grow your startup. Highlight the expertise that key team members bring to the table.
Use the Hipster, Hacker and Hustler formula to build your team.
Wrapping up -
If you already have customers bringing in revenue, then mention that in this slide. An existing consumer base and sales enable investors to bank on your business because the risk has reduced.
Any data that validates your solution will serve as a powerful tool in swaying investors in your favor. This slide will serve as the climax to your story - pair the initial traction data with any past milestones in your business. A startup roadmap to success that summarizes key milestones is also useful here.
This is the last and final slide of your pitch deck - that's right; it is time to ask for money. You must explain why you need that money and how you plan on spending it. Describe how you are going to use that money to achieve your startup’s financial goals and boost its growth.
If you already have investors onboard then, it will prove to be quite useful to mention why they chose to invest in your business.
If you’re using your deck in the right way, you’ll understand that it reflects the learnings and growth you experience as you pitch investors, get feedback, and refine your story and approach.
Start developing your deck today. I hope this blog gave you an extensive idea about the key components that every pitch deck must contain.
Good luck with your fundraising campaign!
At Flyboat, we offer extensive services in building pitch decks and financial models for startups. For further information, contact - 9920211439 or book a free fundraising consultation at book.flyboat.in