Many will say that the most important skill an entrepreneur needs is the vision. Of course, no business would ever add value to the current environment if there wasn’t for visionary and inspired entrepreneurs willing to challenge the status quo. However, every day is marked by hundreds of new ideas and companies that promise to the way we do everything. This is one of the reasons for which the overall investors’ pessimism is on the rise and the due diligence process keeps getting more complicated.
Why are pitch decks important?
There are many ways to make your startup stand out to potential investors. There are also very important steps, like creating a concept, doing feasibility and awareness tests and creating real hype about what you plan to launch.
If you are past these points and do not have the possibility to attract investors by yourself, the best strategy is to look for professional help. Investment and crowdfunding platforms offer just that. They already have a vast investor database and can offer you the necessary exposure. However, having access to an investors database is not enough, as you also need to convince them that your company functions properly and at the end of the funding round you will be taking it to the next level.
This section should be brief, as you have plenty of aspects to cover in your pitch deck, but catchy, as a good impression here means more attention paid to the aspects that aim to convince your audience that the company can add value. Talking about what inspired you to be in front of them and what motivates you is a good start. Do not forget to set a background for the next sections, like what your company does and what your next steps are.
After that, focus on the problem you are trying to solve. Attach research data if you think it’s relevant, but do not make this section longer than the others. It’s important to make the investors aware of the fact that your company solves a real problem to a certain group of people. because an investor must have a clear vision of how your business will change something or come up with a solution that will be accepted by your target audience, thus generating revenue and return on investments.
Whether we are talking about FinTech or Food and Drink, there are plenty of companies, from startups to corporations, who aim to add value in the same field. This section should highlight the difference between what you are offering and what the market is offering . Don’t make this section too long by trying to tackle all the problems your industry has, as investors know when an entrepreneur aims too high.
This should be the longest and most comprehensive section of your pitch deck. Present what your strategy is for solving the issues from the previous one. Don’t get too technical, but don’t miss information without which your concept would not work either. If you have video animations or relevant worksite pictures, include them here.
Describe who your potential customers are. How many clients do you expect at each stage? Who would be most receptive to your idea? What actions in terms of marketing do you have to take to achieve your desired numbers? , present your audience demographics.
Market and competition
Depending on your company or product, there are two possible approaches for this section. If you aim to tackle an emerging or non-existing market, focus on how the new market would look: when and from where you can expect competition, market size and fluctuations and aggregator factors. If you aim to add value to an already developed market, focus on your competitors: who they are, what their market share is and how are you going to gain their potential customers.
By this point, you probably made it clear that your solution is efficient and delivers added value to the customers. But you need to gain something from this aside from the satisfaction of changing people’s lives. Describe your business model, so the investors can know what profit they should expect at any point. No matter how good a business may sound in its startup phase, without an efficient business model, unaccounted losses and spending may occur. Prove to the investors that you are not only a visionary, but a businessman too.
It’s important that this part comes at the end of your presentation because before talking money, investors should believe or want to believe in the change you bring. Keep in mind that if your business is still at the idea stage, it is probably too early for equity funding. The value of an early-stage business will be low unless there is a patent or a very experienced team, so you would have to sell a big share of the business to raise funding at this stage. A small business loan can be a solution in this kind of situations, so be realistic about your options.
, present the people that make everything you talked about possible. It is often said that people invest in people, so make sure everyone’s role in the project is properly presented. If someone has special qualifications, like being part in other successful projects or an extensive field-expertise, make sure that is also highlighted. Do not forget to leave a few contact details, so investors whose attention you caught the eye of can reach you and ask for more details if they don’t get the chance or are not sure of the pitch.
All startups are different. If you think there are more important things than the ones presented above, feel free to add them. But remember, try to stay away from lengthy statistical data or complicated terms. Your presentation should contain an accurate description of your company and the solution it offers. Keep in mind that everything should be explained in a way that even an uninformed person would understand your business model.