Pitch Deck Introduction: The Hook
Like each good story, a pitch deck wants a starting, a center and an finish.
The typical enterprise capital agency used to spend about 4 minutes taking a look at a deck, however that quantity is now down to 2 minutes and 30 seconds, in keeping with DocSend. And meaning you actually need to nail your introduction.
The primary slide of your investor pitch ought to embody an icebreaker — some form of truth or transient anecdote that may seize the reader’s consideration.
Within the subsequent one or two slides, present an outline of the issue your organization is addressing and the way you’re going to resolve it. This may naturally lead right into a slide about your broader imaginative and prescient: The place do you see your organization in three, 5 or 10 years?
After laying this all out within the introduction, it’s time to dig into the meat and bones of your startup.
The vast majority of your investor pitch deck ought to cowl these pillars:
Firm and group overview
Market alternative
Product and mental property
GTM and traction
Firm and Workforce Overview
Have you ever and your co-founders (if relevant) began an organization earlier than, or are you able to in any other case show that you understand what you’re stepping into? And what about the remainder of your management and different staff?
It’s essential to point out that your group has the expertise — and the range of expertise — wanted to actually disrupt a market. Embrace related enterprise successes and academic backgrounds as essential.
Market Alternative
You have to present buyers that there are sufficient clients prepared to pay sufficient cash to your product to justify your goal valuation.
Do that by counting on top-down analysis from market analyst corporations and likewise by taking a bottoms-up strategy: multiplying the anticipated variety of potential clients by the typical deal dimension to calculate your complete addressable market.
Product and Mental Property
Your product is the important thing to tapping into the market alternative you’ve recognized. Clearly clarify to buyers the way it works and the way it’s completely different from different merchandise available on the market, and showcase any mental property behind it that buyers might discover significantly invaluable.
GTM and Traction
Clarify the way you market and promote your product. Use gross sales information and buyer tales to point out that your go-to-market technique is working. Spotlight any outstanding clients and key use instances to exhibit confidence in your organization.
Further Highlights
Don’t go away your investor presentation wishing you’d mentioned one thing extra. If there’s the rest about you and your organization that stands out, equivalent to compelling statistics or fascinating tales, embody them in your deck.
Generally it’s this stuff which have the largest influence on buyers.
Monetary Validation
Traders will likely be on the lookout for some proof factors of product market match, and there’s no higher technique to exhibit that than with paying clients producing annual recurring income. Different metrics you could wish to embody whenever you pitch to buyers are:
gross margin
month-to-month burn
common contract worth
web income retention
buyer acquisition value
product utilization and engagement
Traders may even wish to see your gross sales pipeline worth, however that’s sometimes a request made later throughout the diligence course of.
Pitch Deck Conclusion: The Ask
Lots of founders ask, “Must you make a slide asking for cash in your deck?” The reply is 100% sure.
On the finish of your investor pitch deck, it’s good to clearly lay out what it’s you’re asking for. Specificity is essential right here. Don’t simply say, “We’re looking for buyers in a $1.4 million Seed spherical at a $9 million valuation.”
As an alternative, say:
how a lot you wish to elevate;
why you wish to elevate that quantity;
the important thing investments you’ll make with that financing; and
the milestones you hope to attain.
Thank You and Subsequent Steps
Lastly, ensure that to finish with a thanks and subsequent steps slide. The extra you’ll be able to construct connections with buyers — even when they move in your particular alternative — the extra doorways that may open up for you over time.
