The post was originally published in Polish on Artur’s LinkedIn profile. Artur kindly agreed that we repost what we think is of great value to our readers.
How does one put together a pitch deck that will attract investors? 10 Key Slides:
- Introduction. Present your project clearly in 1-2 sentences. A good example from AirBnB: ‘Book rooms with locals, not hotels.’ A bad example from Peloton: ‘At the most basic level, Peloton sells luck.’ You have no idea what they do.
- Problem. Highlight that ONE big, pressing problem that your startup will solve. Be it data, history, or a mix of all of them. Make investors not only understand the problem superficially, but become emotionally attached to it.
- Solution. Focus on how your product/service uniquely solves the pain from the previous slide. Don’t talk about the features of the product. Tell us what makes your offer valuable to customers and what makes it different.
- Market. The risk with innovative products is high. In order for the investment to be profitable, the profit in the event of the success of the project must also be large enough. Keep in mind that 9 out of 10 startups fail. A general rule of thumb is that a startup should have a real chance of making a 100x return on its initial investment. Hence, the market should be large enough. Present a reliable number for the entire available market and then calculate the value of your venture in the best possible case.
- Product. It’s this slide that shows you exactly what you’re building. Graphic elements, such as mockups, will help you present your product. You can list the key features of your product, but don’t go into details. Keep in mind that this is a general overview of your idea.
- Verification/Traction. Present indicators that prove that your product really solves the presented problem. However, to get it right, you need to experiment with validating your idea before creating a pitch deck. It can be a measurement of traction, growth, ideally from month to month.
- Team. Prove that your group of people is a team – experienced, skilled, and prepared for the project. Show what experience your team members have and prove that they have the necessary skills.
- Competition. Competition is healthy and implies a market need. If they are missing from the pitch deck, it can mean two things: a lack of good market research or there is no demand for your startup. Find your biggest competitors and explain the difference and your advantage.
- Financial forecasts. Putting your best foot forward with financial projections (revenue + expenses) is extremely important, especially if your startup is generating revenue. Many investors are waiting for this part. They expect forecasts for a period of 3 to 5 years, as it helps them assess the company’s cost structure, its potential, and how integrated the team is.
- The big question. How much money do you want to raise, at what valuation, and what are you going to do with the money? How long will your credit last and what happens if that date passes?
Creator, entrepreneur and investor – I write about my experiences with startups, technology and business.
