A great investor pitch can make the difference between securing funding, launching on time and according to plan, or failing to startup because your business doesn’t have the funds
If you’re seeking investment for your start-up, having an impressive pitch deck is a vital part of your fundraising toolkit. An amazing pitch deck will get potential investors excited about your idea and engage them in a conversation about your start-up, hopefully resulting in an investment.
In this article, you’ll learn about all the things you need to include in an investor pitch deck.
1 – Problem
In the problem slide, you should discuss and explain the gap that you’re aiming to fill in the market. Robert Herjavec, entrepreneur expert at Shark Tank said, “Don’t start a business. Find a problem. Solve a problem. The business comes second” which indicates the importance of this slide.
The problem should be a pressing issue that people can relate to and investors can easily understand. Make sure you’re only solving one problem – not two or three – as this will help you come across as focused and relentless to resolve a known challenge.
2 – Solution
The solution you provide has to be extremely clear and concise. Discuss how people can use your offering and how it addresses the problem you raised in your first slide. If possible, use stories and images to explain your situation.
3 – Target Market
Use this slide to explain who your ideal customer is and how many of them are there. You should also include a graph that highlights past market growth and predicted future growth so that investors can get an idea of the expected ROI on their investment.
Use our free customer profile template to segment your customers
4 – Product
In this slide, you should showcase images of people using your product or service. You can even add a description of the product and testimonials from existing users to create a better impact. If you plan on expanding your product range, say it here and explain why and how this will continue to solve the problem.
5 – Business or Revenue Model
After discussing your product or service, discuss how it generates revenue. How much will you charge for it and who’s going to pay. For certain start-ups, it’s the advertisers, instead of users, who pay the bills.
Investors are generally most interested in knowing about this part of the pitch on how you are going to make money. Try to be specific about your sales strategy for products or services, and emphasize how customers in the market are waiting for the arrival of your goods and services.
6 – Traction
Here you should display the month over month growth of your startup such as metrics, sale quantities, revenues, etc. This is essentially proof that validates that the solution you have proposed is effective in solving the problem in question.
This involves blowing your own horn. Try to impress the investors with your latest accomplishments like awards, recognitions, patents, or licenses. Most importantly, impress them with what the business has sold and earned in the last few years.
Note that if you’re in a very early stage or if you don’t have an interesting growth graph, you can skip this slide. Instead include, how you are going to measure success such as by sales volumes, revenues, or number of customers and partners. This will help in convincing the investors that you have a sound business strategy with clear targets.
7 – Team Members
Shed light on the key team members, their performance record in other organisations, and the expertise they offer. Another investor at Shark Tank, Barbara Corcoran, highlighted the importance of team members when she said, “Make sure you pick good people to build your business with, as they’ll determine 80 percent of your success.”
8 – Competition
Describe how you fit into the competitive landscape and what differentiates you from your competitors. Talk about where you stand and highlight why your customers will pick you instead of others.
Use our free SWOT and PESTLE templates to help determine your competitive strengthens
9 – Financials
Investors will want to see your financials, such as your income statement, cash flow, and sales forecast for at least the next three years. Make sure to limit yourself to easy-to-understand charts that demonstrate your financials, instead of complex spreadsheets.
Use our free financial planning statements for this
10 – Investments and Use of Funds
Incorporate the range of investment you’re seeking to raise (such as between $3 – $5 million). You need to spell this out exactly for investors. Include any investments you’ve received up till now, by who, and the percentages of ownership the business is giving away per investment amount. More importantly, discuss why you need the investment and how you will use it to achieve your business goals.