Why pitch decks are necessary

The business world is an ever-changing environment. Sometimes, a great idea can be a hit as soon as it reaches its audience, but that is the exception. Most of the time, the essential factors in the funding and development processes are the time and the way the business idea is presented.

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 platforms offer just that. They already have a vast investor database and can offer a targeted and personal presentation of your startup.

Here’s how to create a thorough pitch deck that will show everyone who sees it that you are well aware of your potential and capabilities.

Introduction

In the introduction, you should talk about who you are and what your company does. What motivated you to create something new and innovative and how you got your inspiration should be included as well. However, try keeping this part short, because you have plenty to talk about, such as the company's short-term and long-term strategy and the solution it brings to the market.

The problem

After that, focus on the problem you are trying to solve. Attach research data if you think this is 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. This matters because an investor must have a clear vision of how your business will change something or come up with a solution that meets people's needs. 

Advantages

Present the advantages you bring. What makes your idea better than what has been tried before? Why do you think people will trust it? How will they benefit if your idea gets implemented? This section must be brief, as it's better to create the impression that you can solve a few issues entirely, rather than trying to solve everything and ending up having poor results. Explain why your solution to a certain problem is effective and focus on your competitive advantages.

The solution

Describe your solution. How are you going to solve the issues or needs that were presented above? Describe exactly what changes will your company bring to those who face the problem you want to solve. Keep in mind that everything should be presented briefly. Present how you plan to introduce your product or service to your potential customers and what is the strategy for this. In addition to this, talk about your product's scalability, especially if you offer a SaaS solution, for instance.

A potential customer base

What audience will be most receptive to your idea? Present a potential customer base. This way, an uninformed individual who is not involved in the field you are targeting could understand the potential your solution has. Attach behavioral or consumer studies if you feel it’s necessary. The customer base's trust is one of the main things that makes a business successful, so try getting into the customers' minds and present the way you plan to meet their specific needs.

The market and competition

Before pitching your idea to potential investors, you probably thought that your idea can be a success if funded properly. Describe how you believe the market for your product will look.

Has anyone tried to tackle the same problem before? Are there any direct and active competitors? If so, briefly describe their business model and how you can compete with them. Don’t forget that even if there is no competition, the problem your solution is trying to solve may be partly solved by other types of products or services, which are not specifically created for it.

Business model

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.

Financial needs

Describe your financial needs. How much investment is needed in order to start your business or to reach the desired operational size? 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.

Team

Last but not least, present the team behind the startup. Each member should have a short description of his or her role in the project. The team behind a business is responsible for the right implementation process of a concept and the good management of anything regarding organisational issues. It is often said that people invest in people. If investors feel that you work well together and can execute your ideas, then they will be more likely to invest.

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.

Conclusions

This is just an idea of how a successful pitch should look like. 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.

Find out how to get funding with Angels Den

The above references an opinion and is for educational information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Investing in any business involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Please click here to read the full risk warning.

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