What Is A Pitch Deck?
A pitch deck is a comprehensive and precise presentation or document that outlines the key aspects of a startup to potential investors or stakeholders.
Why Do I Need A Pitch Deck?
Studies indicate that only 20% of startups are able to sustain operations for more than five years and only 8% go beyond the 10-year mark. One significant factor contributing to the failure of promising business ideas is the insufficient availability of capital.
This raises the question: if the idea is so great, why don’t investors back the startup? That’s where the pitch deck comes into the picture. A compelling pitch deck, which explains the business in a proper manner, can attract institutional investors, helping startup founders secure capital, mentorship and guidance.
To increase the chances of securing investor support, startups need to create a pitch-perfect presentation which captures their business model, and market potential.
3 Things To Consider While Making A Pitch Deck
- Focus On Stories, Not Slides: Stories are powerful tools to connect emotionally. While statistics appeal to reason, it’s essential not to overlook the emotional aspect. Investors often rely on their intuition as much as their logical analysis when making decisions.
- Get To The Point: Many founders unintentionally add excessive literature to prove their argument. However, a strong argument is usually concise and sharp. Avoid explaining too much on the slides and reading from them. Instead, create visually appealing slides that spark curiosity while conveying your message effectively.
- Design A Distinctive Pitch Deck: Your pitch deck reflects your determination and commitment to your business. It instils faith in investors that you will deliver remarkable results. Most importantly, adding a personal touch to your presentation sets you apart from the crowd.
Hence, it is important to create a compelling pitch deck to win over potential investors. If you lack the time or creative skills to design impressive presentations, you can try presentation templates available online. There are also online presentation tools which help in designing a presentation.
What Should Be Included In A Pitch Deck?
Some essential components commonly included in a pitch deck are:
- Cover Slide: Include company name, logo, and contact information.
- Problem Statement: Clearly describe the problem that your product/ service solves.
- Solution: Explain how your product/service addresses the problem
- Market Opportunity: Demonstrate the size and potential of the target market.
- Business Model: Describe your revenue generation, pricing, and distribution.
- Competitive Analysis: Who are the competitors and what is your unique value propositionMarketing & Sales Strategy: Outline your plans for acquiring and retaining customers.
- Team: Introduce the core team members and their expertise.
- Milestones & Achievements: Highlight key accomplishments and partnerships
- Financial Projections: Present forecasts for revenue and profitability.
- Funding Requirements: State the amount of funding sought and its purpose.
- Use Of funds: Describe how you will utilise the investment.
- Risks & Challenges: Address potential risks and how you plan to mitigate them.
- Call To Action: State the next steps you’re seeking from potential investors.
What Should Be The Ideal Length Of A Pitch Deck
Investors hear dozens of pitches every day so it is important to convey a compelling image of your startup from the word go.
Although pitch decks can vary, they should typically consist of 12 to 14 slides, with each slide designed to convey a single and well-defined idea. In no case should the number of slides in a pitch deck be over 20 slides.
What Are The Common Mistakes To Avoid In A Pitch Deck?
Some of the common mistakes that startups must avoid are:
- Adding Too Many Slides: Overloading with excessive slides can overwhelm and confuse investors.
- Excessive Words: Using excessive text on slides makes it difficult for investors to focus and retain information.
- Poor Layout & Design: Neglecting the visual appeal of your pitch deck can make it less engaging and less professional.
- Lack of Storytelling: People love a good story. Failing to create a compelling narrative can make your pitch deck less memorable and impactful.
- No Numbers & Market Validation: Not demonstrating market traction or validation can raise doubts about the feasibility and potential of your business.
- No Clear Financial Roadmap: Lack of clear and realistic financial projections can undermine the credibility of your business plan.
Things To Consider After Your Pitch To Investors
After presenting, remember to:
- Express gratitude for the opportunity.
- Recap the key points to reinforce the main ideas.
- Address any questions or concerns raised during the presentation.
- Offer additional materials that support your pitch.
- Request feedback on your presentation.
- Provide clear next steps to move the conversation forward.
- Set a timeline for the next meeting for deliberation.
- Maintain communication by periodically checking in with potential investors
Keep your follow-up messages personalised and focussed on their interests to increase engagement.
