What Investors Look for in a Startup Pitch and How to Deliver It
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If you are a founder looking for funding, you know how important it is to have a compelling pitch deck that can showcase your vision, product, market and traction. But how do you create a pitch deck that will stand out from the crowd and convince investors to back your startup?
In this blog post, we will share some tips and best practices from three experienced investors who have seen hundreds of pitch decks and know what works and what doesn’t. We will also show you some examples of successful pitch decks from startups at different stages.
What is a pitch deck?
A pitch deck is a presentation that summarizes your business idea, product, market, team, traction and financials in a clear and concise way. It is usually the first thing that investors see before they meet you in person or over a video call.
The purpose of a pitch deck is to:Grab the attention of investors and spark their interest in your startup
- Explain your problem, solution, value proposition and competitive advantage
- Show your market opportunity and customer validation
- Highlight your team’s expertise and achievements
- Demonstrate your traction and growth potential
- Outline your funding needs and use of funds
- Too long or too short (aim for 10-15 slides)
- Too detailed or too vague (provide enough information to answer the key questions but leave room for curiosity)
- Too technical or too generic (use simple language and visuals that anyone can understand but avoid cliches and buzzwords)
- Too optimistic or too pessimistic (be realistic and data-driven but also show your passion and vision)
There is no one-size-fits-all formula for creating a pitch deck, but there are some common elements that most investors expect to see. Here is a suggested outline for your pitch deck:
- Cover slide: Include your company name, logo, tagline and contact details.
- Problem slide: Describe the pain point or opportunity that you are addressing and why it matters.
- Solution slide: Explain how your product or service solves the problem or captures the opportunity and what makes it unique and valuable.
- Market slide: Define your target market, customer segments, market size and growth potential.
- Product slide: Showcase your product features, benefits and user experience with screenshots, demos or videos.
- Business model slide: Explain how you make money, who pays you, how much they pay you and what are your unit economics.
- Competition slide: Identify your direct and indirect competitors, their strengths and weaknesses and how you differentiate yourself from them.
- Traction slide: Provide evidence of your product-market fit, customer validation, user feedback, revenue, growth metrics and milestones achieved.
- Team slide: Introduce your co-founders and key employees, their roles, backgrounds and expertise and why they are the best people to execute your vision.
- Financials slide: Project your revenue, expenses, cash flow and key assumptions for the next 3-5 years.
- Ask slide: State how much funding you are raising, what stage you are at, what valuation you are seeking and how you plan to use the funds.
The design of your pitch deck is as important as the content. You want to make sure that your pitch deck is:
- Visually appealing: Use a consistent color scheme, font style and size, image quality and layout throughout your slides. Avoid cluttering your slides with too much text or graphics. Use white space, bullet points, charts and icons to make your slides easy to read and understand.
- Engaging: Use storytelling techniques to capture the attention of investors and make them care about your problem, solution and vision. Use anecdotes, examples, quotes, testimonials and data to support your claims. Use humor, emotion and surprise to keep them interested.
- Persuasive: Use logic, evidence and credibility to convince investors that you have a viable business opportunity worth investing in. Use facts, figures, testimonials and case studies to back up your statements. Use clear calls to action to guide them to the next steps.
Once you have created your pitch deck, you need to practice how to present it effectively. Here are some tips on how to deliver your pitch deck:
- Know your audience: Research the investors you are pitching to before you meet them. Find out their investment criteria, portfolio, interests and preferences. Tailor your pitch to their specific needs and expectations.
- Know your numbers: Be prepared to answer any questions that investors may have about your market, product, traction and financials. Have backup slides or documents ready to provide more details if needed.
- Know your story: Be confident and passionate about your startup and why you are doing it. Show your personality and enthusiasm. Explain why you are the best person to solve the problem and why now is the best time to do it.
- Know your ask: Be clear and specific about how much funding you are seeking, what valuation you are offering and how you will use the funds. Explain what milestones you will achieve with the funding and what are the key risks and challenges you face.
- Know your feedback: Be open and receptive to feedback from investors. Listen carefully, take notes, ask questions and thank them for their time and input. Follow up with them promptly and keep them updated on your progress.
To inspire you, here are some examples of pitch decks from startups at different stages:
- Mistral, a pre-seed startup that helps companies automate their customer service with chatbots
- Front, a seed-stage startup that reinvents email for teams
- Airbnb, a Series A startup that connects travelers with local hosts
- Uber, a Series B startup that offers on-demand transportation services
I hope this blog post was helpful for you. If you have any questions or feedback, please let me know.😊
