What Is a Pitch Deck and How Does One Create It?
Often, investors come from external sources. Mostly, this means that they might have little to no working idea about your brand. So, you have to present your ideas well to make yourself worthy of their attention and time. If you’re looking into attracting potential investors to be your business’s financiers, then an impressive pitch deck is the way to go.
What Is a Pitch Deck?
A pitch deck is a short presentation that gives your target audience an overview of your business, from your business plan to your competitors. This is so you could obtain funding from investors or serve as a marketing strategy for your product or service. But to attract investments into your business, you have to first understand the fundamentals of a good pitch deck.
If Marie Kondo’s goal is to teach us to keep only the things that spark joy, our goal, in this case, is to spark a potential investor’s interest. Your pitch deck should be nothing short of captivating and remarkable. Chances are, you are not the only startup to pitch their ideas to these investors. Make sure yours strikes them as the remarkable and unforgettable one.
What Is in a Pitch Deck?
Like any other presentation, a pitch deck, too, is composed of slides that tell a story about your business, a brief story that is easy to follow for the investors who might have little to no working knowledge about your startup. But what information should essentially be a part of your pitch deck?
Your introduction slide will be the first one that your potential investors will see. Begin by introducing your company and the reason why you’re here. Most entrepreneurs use this slide to present their unique value proposition. Make your introduction powerful but keep it short and sweet enough to capture your audience’s attention.
They say “necessity is the mother of all inventions.” Indeed, your product was born out of the need to solve a problem. If it isn’t here to solve anything, then why are you even here?
Discuss what gap/s your product is/are trying to fill in the market. You can share relatable stories with your investors to define the problem and help them better understand where your business is rooted. But, identify only a maximum of three issues to include in your problem slide. To avoid being long-winding, take inspiration from this enhanced template of Airbnb’s pitch deck, which followed the rule of thirds.
Never forget to give credit to whom it is due. Introduce the core team behind the project or business and briefly explain their roles. This slide highlights how your team members are uniquely qualified to help you turn a startup into a successful company. You have to show your potential investors that you and your team have the capability and the drive to market and sell your product/service.
4 Target Market and Opportunity
Your target market is a crucial part of your pitch deck, as this could influence your potential investors’ decisions about your funding request. This is largely because your return on investment (ROI) will determine how big or small your operating market is.
Present who and how many your target market is. This is where your research data comes in. Be careful not to exaggerate your business’s scope, though. You want to assure your investors that you have a specific and reachable target market. Your pitch deck should be as realistic as possible.
5 Business Plan
Of course, never miss this one in your presentation. A mere description of your business sometimes does not seem enough for some investors. You have to have a specific business and financial plan to denote your startup’s likelihood of success. Boast of your startup’s unique features and mechanisms and how you project this plan to yield sales. You can also include here your projected timeframe for your revenues to pour in.
Work to gain early traction for your product or service. This will prove to potential investors that your startup truly has the potential for expansion. Emphasize that funding from them will allow you to leverage that said potential.
This slide may include your business’s list of month-on-month growth, annual revenue return date, profit margin, the number of users your products/services have, and other milestones. Such data will help reduce your potential investor’s fear of risk by validating your idea’s capability to solve the problem.
Now and then, a new business venture sprouts, thereby expressing how the industry is expanding pretty quickly. With that, you have to clearly show investors the qualities that make your product or service special and unique among its competitors.
All businesses, even startups, have at least one competitor in the marketplace. This is the part of your pitch deck where you can discuss what the competitor is doing and what you think it is doing wrong. But, take note: do not ever talk ill about your competitors. Belittling other businesses would poorly reflect on you.
This shall serve as your last and, arguably, one of the most critical sections of your presentation. This is where you inform your investors how their money will be spent. Indicate why and how the funding and sponsorship would help your startup grow. Back this up with relevant data and expert insights.
And of course, don’t forget to tell them the amount of money you would need to fund your project. Go with ranges when presenting the amount to appear even more attractive to as many potential investors as possible. For example, you need $3 million. Put a range between $1 million and $3 million instead. Always be more strategic than usual when creating this slide.
If you don’t know where to start, I suggest coming up with some simple questions: What are your goals? What does your company mean to you? What makes you different from others? Would you stand out in the crowded market? How so?
If you are struggling to finish, design, or even start creating a pitch deck, Venngage is always here to help you out. It provides a wide array of pitch deck templates that you can choose from. You can develop each template according to your preferred color palette and your chosen icons that best reflect your company’s branding.