Great insights on a startup pitch by Bob Pritchard
According to some of Silicon Valleys leading Investors, when entrepreneurs are seeking investment, a killer pitch deck should include the following slides:
- Firstly, identify the problem
- Secondly, provide the solution
- The third slide outlines the product
- The fourth slide details the market size
- The fifth slide details your team
- The sixth slide identifies your traction
- The seventh slide discusses your competition
- The penultimate slide contains your financials
- The final slide states the amount being raised
Quotes from media outlets give trust and add social proof to your venture. For any investor reviewing your deck this will give instant credibility. By having credible sources you will most likely increase the attention and time spent on your materials.
Problem and solution
Normally startups create different slides for the problem and the solution however summarizing all the information in one single place is good because on just the second slide, the investor knows right away what the company is all about and the problem is trying to solve.
The most important slide in any pitch deck. The investor wants to know who is driving the business and what makes them so unique to execute on that mission and vision. The idea is 10% and 90% is from execution. When you are investing in a first time founder you are also investing in that individual‘s education and all the mistakes he or she will make during the early days. Having the founder experience and domain expertise helps in reducing the risk of an investment.
You should definitely include a slide covering traction. Investors want to know what kind of acceptance your venture has received from the market and if you are ready to scale the business with the capital you raise. Many founders make the mistake of raising capital to start the company. This ultimately results in taking unnecessary dilution right out of the gate.
Show the growth that the market is experiencing over time. Include sources from research papers and graphs.
Opportunity and competition
This slide showcases all the competitors in a diagram where you set yourself apart from all the other companies, clearly outlining what makes you unique.
Barriers to entry
One of the main concerns of investors is the competitive advantage that your company has over the other players in your space. What makes you unique? How will you be able to outperform your competitors? Make sure you include this information on your pitch deck very clearly.
Investors want to know who else is part of your company. If you have high profile investors already, include them or their logo in this slide. This will definitely help with increasing the trust with prospects. Also include the use of proceeds. Why are you raising the capital and what you intend to do with it?
Future prospects & vision
Without a proper vision and having the team aligned around it there is no way you will find success with your venture.
Provide access details to the data room on this slide. This helps in accelerating the process of getting funded as it takes out the back and forth. You can use Dropbox or Hightail for this.
Financial projections are a shot in the dark when you are a startup. However, this slide serves as a roadmap and gives a good idea to the investor on where things are headed. It also shows how grounded you and your management team are. If you are not a financial guy, you must have an expert take a look at your financials before you send them out to investors.
On average an investor will take around 2 minutes to review a pitch deck