Raising capital is very hard. For this to happen you need to have an outstanding pitch deck presentation to leave investors fully attracted to your investment opportunity.
Here is our take on the 10 most essential slides to add when preparing a great pitch for investors.
Table of Contents
This is the curtain opener for your show. The first slide should be visually attractive and should be representative of your brand proposition.
Short and crisp, it should give the introduction of your idea in the minimum amount of words.
State the unique value you are going to offer your customers along with the proposed tagline, name, and brand logo.
Try to make a statement that is creative yet conveys the message clearly.
State the problem your product proposes to solve. If the problem is not big and universal, convincing your audience will be an uphill task.
Pinpoint how a segment (the target market) is struggling with this problem. Highlight their issues through a storyline that is relatable for the potential investors as well.
Make it as realistic as possible. The key is to highlight the problem so that it resonates within the investor’s mind and helps him understand your product as the best solution.
Provide a specific definition of your target market. Write down the characteristics of the potential customers and highlight them using facts and figures like:
- Segments of the Market
- Size of the target market/ estimated number of potential customers
- Buying power of the target segment
- Your position in the market
These are the basic details every investor will be interested in.
If you have done your homework right, then this is a plus for you. Your investor will show heightened interest just by reviewing the real numbers.
Many times, entrepreneurs make false claims and try to impress the investors by overstating the number. Avoid this practice at all costs. It will cost you your credibility and trust.
The more realistic and factual your numbers are, the more pragmatic your pitch becomes for the investor.
The slide will provide information on how you will cater to your initial market segment effectively.
This is the point where you start explaining your product or service concept and its specifications.
Use powerful illustrations on how to use the product to solve the highlighted problem effectively.
The way to make your product or service more lucrative is to highlight the customers and their problems. An urgent problem that they are spending money on. Your storyline should proceed with the proposed product as a hero or saviour to your customers’ problems.
Now that the investor is convinced about your product, its usefulness and its marketability, the next point to highlight is how to make money from it.
The details that most potential investors will be interested to know include:
- Pricing of the product or service
- Demand and supply
- How you will sell it
How are your competitors? What are your strengths, weaknesses, opportunities and threats? What is your unique value and advantage?
Briefly explain the marketing model you plan to follow to promote your product or service. Elaborate on your sales procedures and channels to bring further clarity.
List down tactical techniques you plan to adopt from the first launch to the ongoing advertising.
You cannot promise success without a winning team. This is what makes you different from the rest of the players in the industry.
The secret combination of human capital that gives your product and company the competitive edge you are looking for is the team you have.
Carefully highlight their professional strengths and how they will grow the investor’s return on investment.
Use credentials like qualifications, experiences, professional achievements, and skills to highlight their expertise.
No pitch deck can be complete without a realistic financial analysis. Before making any investment, it is only justified for the investor to review the financial projections of the startup or product.
A statistical financial display should include a projected income statement, sales forecasts and cash flow statements.
Using graphs and charts can make your work even easier and more effective.
Make sure that your figures are realistic, based on true assumptions and not overstated or manipulated to make your product attractive in the eyes of the potential investor.
10. The Actual Investment Request
This is the last part of your formal pitch deck.
Once you have conveyed all the relevant details to the investor and convinced them about the lucrativeness of your proposal, you can now safely ask for the funding you need.
Although this is the core objective of the pitch deck, it should be left to the very end.
When the potential investor has become acquainted with your problem-solving proposition, the product, the business plan and the profitable financial projections, you can highlight the exact amount of money needed to fuel your business.
Consider this slide as a “seal the deal” move. It should contain relevant details like break up of funds requirement, expected usage, and its utilization for attaining the next milestone.
Creating a pitch deck, presenting it and making it a success, can be cumbersome. It requires lots of effort, time and wisdom.
On the other hand, the potential investors also have a lot on their plates.
With new products emerging every day at the speed of light, there are tons of new startup founders and entrepreneurs chasing the investors for their valuable time and money.
Every day each investor is presented with many pitch decks. The entire process can be exhausting for them too.
So, going forward with an average pitch deck that has not really been thought over carefully is like going to a battle with a fork.
You should create a pitch deck that has all the relevant details, is able to persuade the investor about the profitability prospects of the project and keeps the investor engaged and attentive for a longer time period.
Many times, entrepreneurs are eclipsed by their own overconfidence. They have the misconception that their product will do all the talking for them.
However, things are not that simple. It’s more about checking the boxes that investors are looking for, and following the pitch formula they expect.
If you do not get the right amount of investment at the right time, you are likely to fail before you even start.
Early investment is a saving factor for your future business cruise.
After all, success or failure, all depends on the right and timely decision making.
Investors too are hesitating to make investments and taking risks.
Therefore you need to use your entrepreneurial skills and professional intelligence to create a killer pitch deck that won’t let you down.
If you have a dream and you are truly determined to make it come true, then you will leave no stones unturned.
The same is the case with entrepreneurship.
If you have a business idea that you are really optimistic about, then go all out to make it a success. Tell your story to the investor in the most persuasive manner.
Work hard not just to launch your business but to create a pitch deck that will guarantee a positive response in terms of the required funds.
A hardcore investor may review your pitch multiple times over several meetings. Do not be intimidated.
Be confident in your vision and make a strong pitch deck that does not leave important questions unanswered.
Utilize the guidelines provided above as building blocks for your own unique investor pitch deck and get ready to raise some useful startup capital.