How Does a Winning Investor Pitch Deck Look Like In 2020?
We’ll help you to build one successfully
Pitch decks…This is a matter which concerns more and more entrepreneurs as the start-up culture has been picking up in the last couple of decades.
Endless ideas are floating around this promising ecosystem, but a very small percentage make it to the portfolios of the all-mighty venture-capitalists. Аs the pitch deck has been the new standard in the investment world and a crucial element which wins over even the toughest investors of them all- in this article, we shall review on it’s most important features.
To dive in, here is a general consensus about the slides which should be included in a pitch deck:
- Cover
- Problem
- Solution
- Market Validation
- Market Size
- Product
- Business Model
- Market Adoption
- Competition
- Competitive Advantages
- Team
- Press
- Users Testimonials
- Financial
Having said that, there are a couple of key slides on which one should really focus on.
Cover/Intro
Simplicity, clarity, and design are essential here. You have got to grab the attention of the investor as soon as the first slide. The good first impression is valid in any case when it comes to human- beings.
This also means that your design must be stellar - perhaps you could think of a professional designer doing it. It is a very good social proof to have all of your social media/website links on the cover of your pitch deck- chances are the first thing venture capitalists will do is look you up.
Team
This is absolutely crucial when pitching for fundraising. Investors need to see that your “incredible idea is helmed by credible entrepreneurs”, according to fundable.com. It is good for them to see some achievements of the co-founders, ideally connected to the startup being presented.
Slidebean’s CEO, Caya, suggests the hustler (sales guru), the hacker (product development professional) and hipster (brand builder) trio as a winning combination.
Problem
Here is your chance to create empathy.
Make sure you have done your research and you know that you are contacting the right fit investors for your start-up. If they understand the problem you are presenting them with- whether this is due to their professional expertise in the subject; you have used comprehensible language, or simply they have experienced this problem themselves- chances are you are already getting at least 20% of your asking- capital.
The picture above is showing a great example of Airbnb’s problem slide where they have simply written 3 short sentences, with some very down to earth statements that people can relate to.
Competition
Your competitors are not your enemies- they can do you favour even in the process of product creation. You can draw some conclusions out of the nature of their business; results and fundraising history, which you could use in your pitch deck to back up your theory, competitive advantage and the sum of money you are looking for.
In this example, you can clearly see how Slidebean has combined quality of design with a user-friendly optimization to really distinguish themselves from the rest of the tools on the market. For instance, although Adobe Illustrator can be used to create amazing designs, it is a professional tool and not everybody knows how to use it.
Business Model/ Finance
To be absolutely honest - investors are not some guardian angels just desperately trying to give their money away to any start-up that comes their way. They want to see how much “gold” your idea will bring them. Make sure you stay on the conservative side - this way you are most likely to overdeliver, which is highly valued!
Airbnb’s business model was very simple and clearly showed the revenue channel for the business (10% on each transaction); and how this will grow within the first three years.
Here comes “traction” too - maybe you have already put some resources into this project, and they have drawn some results - BIG THUMBS UP! Very beneficial to show that you are already getting an income- your chances are high (Slidebean).
Make sure you also leave a bit of leeway when asking for money. The investor might be able to give you some of the sum you need - do not be greedy (multiple investors is also a good option to consider).
As you are reading this blog article you are probably wondering why we have put PEOPLE before PRODUCT…Well, according to Gary Spriter (CEO @ Question Mine), venture-capitalists have more interest in the customers, the entrepreneurs and the team behind the idea. It could be a great product, but if the people are not right for it (including the investors themselves), it could all go down the drain.
Which brings us back to YOUR HOMEWORK - make sure you have done your research:
1st: The investor has an interest in the business realm you are entering (therefore is more likely to invest in your product)
2nd: The investor has not already invested in a competitor. Make sure you know your competitors very well- it is not good if the capitalist knows them better than you!
Of course, all of the slides in the list further up are important, however, a DocSend research including 200 pitch decks has shown that investors spend 3 minutes and 44 seconds when reviewing your pitch deck. For most of this time, they are looking at the team, financials, and competition slides, according to Alejandro Cremades, Forbes.
What we can draw from the written above is that in order not to look like fools in the first place when seeking capital, we should find out more about the venture capitalists (VCs) that we are looking to approach.
Then, the winning strategy is to show what a unique socially-proved idea you have, with great traction and amazing team…Oh, and of course - do not forget to show the investor how much money they are going to get out of this.
When our clients need a Pitch deck to raise funding, our team uses all the know-how gained from the previous projects that already raised money. And we make sure not to waste their time at such a critical stage.
