Getting a business funded is maybe one of the most challenging stages within the startup process. Entrepreneurs need to showcase their value to potential investors that are accustomed to hearing 'revolutionary' ideas.
In this context, delivering a compelling story to sell the startup goes beyond creating a fancy slideshow displaying numbers and charts. Capital investors want to discover real deals, and they don't like to waste time.
At this point, you must be wondering how to engage VCs and Angel Investors and get the key for business growth? A killer pitch deck can lead your startup to a successful round of financing.
Why Do I Need An Investors Pitch Deck?
First things first, what's a pitch deck? It's a brief presentation to display potential investors an overview of your business to raise capital. Therefore, as the first touchpoint with your company, it will help those investors determine whether they're open or not to evaluate your startup business.
The main goal when outlining your business plan to VCs is to be concise and focused. Sounds like a piece of cake, doesn't it? However, even though being short and precise is essential, there are a few more aspects to consider to make your mark on your next funding round.
How To Create A Killer Investors Pitch Deck
These are the five essential principles to create your next investor's pitch deck and succeed in the process.
Apply The Rule Of 10/20/30
Guy Kawasaki, known as a famous venture capitalist and author of 'The Art Of The Start,' developed the 10/20/30 rule when creating a slideshow pitch deck. The method consists of developing a presentation of 10 slides that last no longer than 20 minutes, using fonts no smaller than 30 points.
The shrinking attention span requires entrepreneurs to display their business features in just ten slides to avoid losing VCs' interest. Thus, they fit perfectly in a 20-minute presentation, allowing spare time for discussion and some Q&A. Nevertheless, Kawasaki's rule is not meant to be strictly followed but as a guideline to enhance your pitch deck instead.
Show Your Vision And Unique Value Proposition
This section should have a significant impact and yet be short and witty. Showcase your business’ value proposition and its vision in a few powerful statements. In this slide, you are supposed to outline the peerless benefits of your products over the competition.
However, don't make an endless list. Just pick the most relevant ones (one or two) that you consider that describe your products the most. In a nutshell, you have to show VCs the gap your business fills in the market and why they should choose you and not your competitors.
If you are struggling to find your value proposition, create a list of your target audience's pain points, and clear-cut insights will pop up. Remember, the vision and your unique value are pillars of your company. Don't throw yourself into an investor's financing round if you don't have this essential aspect covered first.
What’s Your Target Market?
Knowing your target audience is key to developing the right strategies. Show investors who your ideal customers are and focus on the market size. Angel Investors' primary concern is how you intend to position your startup on the market. Therefore, aim to have a solid strategy to answer that question with reliable data.
Nevertheless, don't create a bunch of slides full of numbers and charts. Try to be specific when explaining your market scope to show VCs you are realistic and focused. Implement a streamlined chart showing how the market grew in the past and the potential growth with your business entry.
Outline Your Business Model
You have already described what makes your business unique, so now it's time to speak about how you plan to make money. You have to be straightforward, display concrete facts like the revenue model, the cost structure, budgets, traction, partners, and customer segmentation.
To avoid feeling overwhelmed by the amount of data to display, you may use a lean canvas model. This is a handy tool that will help you design and organize your business model.
Related Read: Entrepreneurs And Innovators Need Lean Canvas Models For Their Businesses: Learn Why
Don’t Forget The Team Behind Your Business
Show venture capitalists why you have the right team to grow your business. Focus on highlighting the expertise of essential members and how they work aligned with the company's vision. Investors want to know you have a solid and experienced team behind. However, don't display the whole team and lengthy bios on this slide. Instead, focus on the most relevant members and their key points to answer the founder's question, why you?
A successful investment round can be a giant leap for your startup. By taking these key principles and pulling them all together, your pitch will hardly be passed over.
Don't know where to start? At Base Miami, we partner with entrepreneurs to help them plan their Market Entry, avoiding undesired pitfalls. Start outlining today the strategy for tomorrow's success, and share your story with us on LinkedIn.
