Unleashing the power of a well-designed pitch deck: insights on how to captivate startup investors
Statistically, only about 1 percent of pitch decks attract investors and land investment money. Of course, part of this equation is finding the right investors, whom your idea will resonate with, but even when you've found them, expect that your pitch deck will get less than three minutes of their time.
Design is powerful and done correctly it provides structure, can convey a lot of information, and set a flow of narrative that is attractive to investors. In a world where attention spans are dwindling, a visually appealing and concise pitch deck can grab and hold their attention. There are certain key elements that investors look for:
TITLE SLIDE: CLEAR PROPOSITION
A one-liner single-minded proposition stating what you do, AirBnb’s was “Book rooms with locals, rather than hotels”.
PROBLEM: SET THE SCENE
This opening slide is crucial – you have the eyes of a potential investor so use this space well. Clearly define the problem that your startup aims to solve, identify the consumer pain-point, include who else is out there and how they’re falling short.
SOLUTION: WHAT ARE YOU DOING THAT’S DIFFERENT?
Present your unique solution to the problem. Explain how your startup's product or service addresses the problem in a way that is better than existing solutions.
MARKET OPPORTUNITY – IS IT BIG ENOUGH?
Demonstrate the size and potential of the market you are targeting. Investors want to know that there is a substantial opportunity for growth and return on investment.
PRODUCT – WHAT FEATURES DO YOU HAVE?
Showcase the product, whether that is an MVP or beta and be clear on the product benefits (linking up to the first slide of why this product needs to exist in the first place).
BUSINESS MODEL - HOW DO YOU MAKE MONEY?
Explain how your startup plans to generate revenue and achieve profitability. Outline your pricing strategy, revenue streams, and cost structure as well as the LifeTime Value of a customer (LTV) and Customer Acquisition Costs (CAC).
TRACTION - IS THERE DEMAND FOR YOUR BUSINESS?
Show tangible evidence that your customers need this product and there is clear usage and retention ie: all you need now is the capital injection to propel market growth. This can include the number of users, clients, % of time spent on your product or service, sales pipeline and strategic partnerships etc.
COMPETITIVE ADVANTAGE - WHAT POSITIONING ARE YOU OCCUPYING?
Highlight what sets your startup apart from competitors, create a positioning diagram and/or tangible tick box exercise to make this clear. Showcase your unique value proposition and any intellectual property or proprietary technology you may have.
GROWTH STRATEGY - HOW ARE YOU GOING TO ACHIEVE ROI?
What are the key milestones and focus areas across the next 3-5 years? What marketing channels are you looking to deploy to achieve this plan and how does this work with your projected LTV/CAC to hit your forecast growth financials?
FINANCIAL PROJECTIONS - ARE THEY DEFENSIBLE?
Provide realistic and well-researched financial projections that demonstrate the potential profitability of your startup. Investors want to see that you have a clear understanding of your business's financials.
TEAM - HAVE YOU GOT THE RIGHT PEOPLE?
Introduce your team and their expertise across full-time staff and advisors. Investors want to see that you have a capable and experienced team that can execute your growth plan and deliver ROI.
THE ASK - BE CASH CONSERVATIVE
Your ask needs to match your forecast. The climate has changed and there is nothing wrong with raising a smaller round – valuations are tougher, and you may need to stagger your investment ask.
Ready to give it a whirl? Download our free pitch deck template.