How to craft your first start-up pitch deck
It is time to grow your business and you start to meet investors and venture capitals (VC) for fundraising. Now, you’re off to a good start and certainly should take this opportunity to pitch to the prospective investors and get them to learn more about your business.
The very first step you would need is to prepare a pitch deck, which you’ll use to briefly present your business model to the investors. Regardless the amount you’re seeking to be funded, a pitch deck plays an extremely important role in deciding the outcome of your investors pitch. A start-up pitch typically lasts not more than 20 minutes, and a pitch deck generally contains 10 slides (you wouldn’t want to bore your audience with too much content).
It might seem a bit daunting if you’re preparing for your first pitch, but fret not because we will provide a detailed guide on how you can build an impressive pitch deck to capture your investors’ attention.
1. The problem statement
Always start off with the problem statement which your business is tackling. Do not go on to sell your business solutions to your investors, without letting them know about the context. Whilst addressing the problem, you’ve got to back up your statement with evidence – either primary or secondary research.
2. Your business solution
After addressing the problem statement and showing that you’ve done your research, you should convey your business solution to your investors.
You could consider including the following pointers:
- Why the existing solutions aren’t working well
- Explain your solution(s) – how it is better than the existing ones and how is it different
- The unique selling point of your solution(s)
The main objective of this is to intrigue prospective investors on the effectiveness of your business solution. Instead of solely describing the details of your solution, you should also explain how your product/service will be value-adding for your customers.
3. Performance Metrics
If you’ve got a good solution but poor performance, investors might still not be interested to invest in your business. You have to show them why your business is worth investing on – through various performance measures such as: your customer size, monthly revenue, profitability and strong business development opportunities.
4. Growth Potential
You’ve captured the audience’s attention. Now what?
Let the prospective investors see that your business growth doesn’t stop here – that there will be even greater potential and opportunities in the later stages. You’ll need to include your target market, the cost involved in acquiring a segment of the market (converting prospects into your customers) and also an analysis on the market that you’re targeting.
5. Marketing Strategy
You’ve got a strong market potential; your business solution seems viable – yet remember to tell your audience how you will market your business to the public. Mention the competitive edge in your business model, present a competitor analysis to bring out the advantages and uniqueness of your solution, and tell them about your market positioning strategy.
6. Vision, Mission, Team
Last but not least, remember to introduce your business vision and mission to your audience!
It certainly isn’t easy to prepare for your first start-up pitch deck. How can you tell the entire story of your business within a limited time? As with everything else, practice makes perfect! Keep practicing and reviewing your slides to ensure that the whole presentation flow is smooth and coherent.