What is a Pitch Deck?
Updated: Nov 3, 2021
A pitch deck is a presentation used to provide investors a quick overview of your business plan. You usually use a pitch deck for investor meetings, customers or partners. It’s short visual storytelling about your idea and how people can capitalize over it.
Slides in a Pitch Deck
A brief introduction of how your startup came into existing and the team members associated with it. This will help build a sense of trust among your potential investors. Everyone likes an inspiring story and your investor are no exception!
This would also mean you need to present how you nurtured this idea and started building on it and the steps you took to validate the idea in the market.
Your unique product or service always has an operational working model and visually presenting it is most important. This is where you get your working model built with a creative agency with the help of motion graphics or videography.
Don’t forget, your idea has been in your mind for a long time but it is new to your audience and they may not grasp it quickly. Visuals content interacts well with your audience’s brain and stays in memory for a longer period of time
Problem and Solution
Studies suggest that startups with innovative disruptions find it easy to gain funding. They require less market validation and existing customer base to attract investors. The best pitch decks till day have been the ones who have been successful in pointing out 3-4 major problems&solutions on their slides. This will help you gain your potential investor’s attention in short period of time and work magically in your favor to gain funds.
Investors get n number of pitch decks on a daily basis and new ideas are pitched to them every day. When it comes to ideas, there is nothing new under the sun. Having a great idea isn’t gonna cut it when you want a person to invest in your startup. It requires an evidence of existing achievements and customer base of the startup.
Let your existing customers testify for your idea and how great it is to work with you. To make it short, proving traction is “Look how well we are doing on our own with limited resources, imagine what we can achieve together with fuel”
Every new founder knows the market and it’s potential. Gaining market share begins with knowing how big the market actually is. The market size never means the revenues of your direct competitors, your idea will have more value in the minds of investors if you take into consideration the form competition in your area of product/service.
This is why the problem and solution slides are strategically placed before market traction and market potential because the problem you are solving has much broader potential.
Mentioning your immediate competition is a big mistake most of the founders make while presenting their pitch decks. To simplify, a startup in car rental may consider other car rental services as their competitors.
Now, you may be better than them in terms of innovative service, technology and customer interface but your competition is ideally anything which is into travel services and transportation. Not taking form competition into consideration makes you look short sighted and naïve.
The most important questions… “How do you planning to make money?”… “How soon will the revenues pour in?”… “What is your analysis on the break even of your firm?”.. Answering these questions before your investors ask them is a good idea. This shows you have thought this through.
You need to understand the thought process of an investor, they depend on your efficiency to help them grow money multi-fold and want to know if you got everything covered.
Your investors have a right to know what are you gonna do with their money, where are you gonna use it and how it will bring return in the long run. Founders think just mentioning sales and revenue generation would do good.
But it is important to mention that you are gonna hire consultants every step of the way who know what they are doing. This shows you willingness to make informed decisions and hire people for best results.
Leave contact details of every person associated with your team for people to get back to you. You will face situations when they won’t contact you immediately but in future they may.
Try to circulate your deck among as many people as possible but never circulate something you don’t own intellectual property rights of.
Should a Pitch Deck be long and detailed?
Any good pitch deck consultant would know that different pitch decks work better with different audience and would hand you over 3 to 4 files. One pitch deck would be short and crisp points when you have to impress the audience in not more than five minutes and other ones would be detailed. You will meet potential investors who would ask you for details before investing and there you have to email a pdf or a detailed presentation. There is no one answer to this question, it all depends on the audience.
How important is a great design?
First of all, a great design showcases that you put an effort into making your idea look visually appealing to your audience. A good consultant will know the two major requirements of your deck
1. Great content
2. Good design.
A flawless design compliments you while you speak and speaks for you in your absence.