If you want to raise money for your business, you’ll need an impressive investment pitch deck. You should create a pitch deck that engages your potential investors and gets them excited about your idea, hopefully leading to an investment. Here’s what your pitch deck should include.
My knowledge is based on listening to hundreds, if not thousands, of elevator speeches and pitch presentations. There is a simple formula that works with all types of pitch decks and presentations that I have seen.
Additionally, I have presented to major Silicon Valley VC firms.
Vision and value proposition
Your business and its value to customers can be summarized in one sentence. Simple and short is best. Think of this slide as a short tweet explaining your business in 140 characters or less.
Several tech companies compare their value propositions with those of well-known competitors. The following is an example of a pitch that begins:
“We’re the Uber for Pets”
“We’re the Netflix for Video Games”
Consider Uber as an example of growth potential, but make sure your comparison makes sense. You must have a business model similar to the one of the company you are referencing.
In business, if you do not solve a problem, you will face a long uphill climb.
You can use this slide to explain what the problem is and who it affects. The competitive landscape should not be discussed too much on this slide, but you can discuss current solutions in the market.
Make the problem relatable by telling a story when defining it. Providing investors with a real-world problem will help them understand your business better.
Target market and opportunity
In this slide, you will describe your ideal customer and how many there are. Can you tell me where your company is positioned and how big is its market? The total market size can be determined by looking at how much people or businesses are spending. Your problem is described here in terms of its scope and scale.
Different marketing methods and perhaps different products will be used to target different segments of your market.
It is, however, important to handle this slide with care. Market definitions that are too broad can be tempting. The market you are targeting must be very specific and reachable to investors. You can make your pitch more realistic by being specific.
Last but not least, describe the product or service you offer. Describe how customers use your product to solve the problems you outlined on slide two.
You may be tempted to move this slide closer to the beginning of your pitch deck, but resist the urge. In this type of storytelling, you describe how bad the problem is for a lot of people. Your product or service is the solution to that problem.
The problem with entrepreneurs is that they are very focused on their product instead of their customers and their problems. A pitch deck with this format will help you tell a more compelling story.
If you can, use pictures and stories to explain your solution. In most cases, it is better to show than to tell.
Revenue model or business model
The next step is to explain how your product or service generates revenue. What do you charge and who pays your bills? In some cases (for instance, content sites), which rely on advertisers instead of users to pay their bills, it’s important to flesh out the details here.
Also, this is a good time to discuss your pricing in relation to the competitive landscape. What is the price point of your product? Is it a premium, high-priced solution that undercuts existing solutions?
- Things to include in the business pitch plan
- How to make a business pitch plan successful
- Documents required for business pitch plan investors