Winning Investors' Heart Through Compelling Pitch Deck
Some startups need to be funded by investors, however raising capital from investors is not easy and time consuming. The most crucial at first time seeing them is presenting strong, thorough, and engaging pitch deck that could either get your business off the ground or excite the investors to hear more about your idea and get funded.
These are the most important thing when creating the pitch deck so it can be compelling, outstanding and irresistible:
- Less time
The less time your pitch takes, the better. If investors are interested, they will ask questions, but if they aren’t, then you will have saved their time and yourself.
- Tell a story
Engage your audience right out from the beginning through a compelling story that address the problem you’re solving with your products or services. Even better, if you can relate your story to your audience, it makes your pitch unforgettable.
- Describe what your products or services offer for solution
You have explained the problem in previous slide, the next slide should tell the audience what is your products/services can do to solve the problem, it should be unique enough from the existing products/services in the market. Keep it short, concise, and easy to digest; at the end, the investors really care about is the money that your product/service will make.
- Describe your target market
Show investors who is your target market that has been divided into TAM (Total Available Market = everyone you wish to reach with your product), SAM (Segmented Addressable Market = the portion of TAM you will target) and SOM (Share of Market = the subset of your SAM that you will realistically reach in the first few years of your business). Identifying your TAM, SAM and SOM requires some market research, but dividing them will help you to think more strategically about your roll-out plan.
- Explain how to acquire the consumers
It is good that you could present your target market strategically, but you should also present the GTM (Go-To- Market) strategy on how you will acquire them.
- Explain the traction
When you see the investors, at least you have already shipped an MVP (Minimum Viable Products) or prototype to the market to review the traction of consumer response and possibility of revenue. Traction is important to help you understand where is your company stands in an industry and where it would like to be.
- Mapping your competitors
Mapping your competitors and provide enough details about why your products/services are so different from them. You should be able to present your competitive advantage, what is lack in your competitors can be fulfilled by your products/services.
- Explain your revenue model
Investors are very conscious of monetization. Show them the strong revenue model that you are embracing and how you apply it in your business.
- Describe your financial projection
Show what you are projecting in revenue over the next three to five years. Don’t work your financial projection only based on assumption, make sure your numbers make sense by backing it up with enough data and information.
- Introduce your team
Share details about your team and the reason why they are the right people to lead your company, because most investors invest in people first instead ideas. Some skill-sets might be missing from your team because of your limitation on finding the right people with your existing budget, but you should share it with your potential investors so they know that you know everything about your company.
- Clearly telling your funding needs
Near the end, you should have a slide entitled “The Ask” that clearly address what you need from investors. But, you should tell the investors upfront on how much investment has been invested in your company, by whom and ownership percentage and how much more you need to go to the next level. Of course, all requests must be completed with information of how long you think the financing will last and what major milestones will be able to reach the financing.
- Show them the exit strategy
Most investors want to know what your exit strategy is, especially if you ask for large sums of investment capital. Show that you have done some due diligence on this exit strategy for different range of time.
With all the points above, you should now ready to sell your pitch. And remember to practice your pitch over and over again, dress properly to gather first good impression on you and find out beforehand what the judging criteria is and match your pitch with it.