A pitch deck is a presentation that start-up owners use to demonstrate their businesses to potential investors to attract financial backing. This type of deck is also known as a start-up or slide deck.
Putting together a pitch deck that is both sophisticated and compelling is a part of the process that is necessary for any start-up that is attempting to secure financial backing. It is of utmost significance for new businesses to ensure Series A funding merely because the company is still in its infancy and has a limited track record.
Obtaining financial backing is becoming an increasingly critical component of the success of small businesses. In this post, I will briefly discuss pitching your business ideas and proposals to get Series A funding in the long run.
What are the goals of a presentation for a Series A funding round?
A series A pitch is intended to showcase to potential investors the value of investing in the presented company. It should give a clear and succinct description of the business you have developed and then paint a picture of where that firm could go, along with why raising money will help you get there.
Advice on Making a Pitch for the Series A Round
It is advisable to define your fundraising narrative and develop a compelling pitch deck before scheduling meetings with prospective investors. Here are some advices that you might want to consider.
Reasons why they should make an investment
This is not a pitch to potential customers; it is a pitch to potential investors. The investors may have never experienced the issue that your product is addressing, and as a result, they won’t comprehend how your product addresses the issue on an intuitive level.
Because of this, effective sales presentations accomplish three primary goals: they describe the issue that your consumers are facing and the effect it has on them; they illustrate how your product satisfies this requirement and improves the quality of life for your customers; and last, they show why doing so is profitable for your company.
Direct and unambiguous
Consider the attention of investors to be a finite resource that you will need to allocate effectively. Keeping your presentation as plain and uncomplicated as possible can reduce the time required to comprehend your company. Investors should be able to quickly scan each slide and grasp the concept presented to them without any additional explanation.
The finest pitchers speak in simple language and try to avoid jargon as much as possible. Wherever terminology is required, they describe each term clearly and concisely the first time it is used and adjust this according to the amount of domain experience their audience possesses.
A Glance at Your Company in General
Your objective is not to provide investors with exhaustive details about your company but to pique their interest by providing just enough of these particulars. Leave room for questioning.
When executed effectively, a pitch paves the way for a subsequent conversation that is both fruitful and in-depth.
The time allotted for pitches should be between 15 and 20 minutes, and their primary purpose should be to lay the groundwork for the upcoming 40 to 45-minute debate. In the same vein, if investors aren’t asking questions or engaged in the discussion at all, this should serve as a warning sign; it’s likely an indication that the slides you’re using are too difficult for them to comprehend in sufficient detail for them even to be intrigued about what you’re saying.
Discuss the company that you have established.
Begin by describing the things that you’ve already accomplished. It is more difficult to acquire money for an A round based solely on a promise than for your seed round. Investors will want to hear what you’ve accomplished with the resources and time you’ve previously had at your disposal.
Give them an idea of where it’s going to end up.
To convince investors to believe in your vision, you must first demonstrate how your current reality is moving in that direction.
Once you’ve demonstrated that you’ve previously accomplished something noteworthy, you’ll have the credibility you need to illustrate how your venture has the potential to become a huge corporation. Investors in venture capital are looking for massive returns, and to acquire those returns, they need to think that your company can achieve them.
Why would investing help you reach your goal?
It should be made abundantly evident in the presentation that the primary factor preventing your company from expanding is financial constraints, and not incompetence, poor product quality, an absence of product-market fit, etc. At the end of the presentation, you should clarify this point and demonstrate how you intend to invest that money to go to the next level.
Pitch Presentation Format
Once you understand how to present your pitch successfully, you must make a presentation that will draw your investor’s attention the entire time you submit to them. Ensure you put in the essential details so it will save time.
Here is a format of the formal presentation that you should follow.
Details About Your Organization
Include your company’s logo and name and a way for investors to get in touch and schedule a time to hand over some cash. Don’t try to keep this a secret. Your contact info should be prominently displayed, especially your cell phone and email address.
The Idea Behind It
What is this, exactly? Demonstrate to the audience members up front what it is all about so they can determine whether or not they are interested in it. In most cases, this information might be presented on the cover slide, with a memorable tagline and a great photo with a high resolution.
The Problem
The problem you are attempting to solve should be communicated clearly and certainly in the slide’s title. To illustrate the seriousness of the issue, consider incorporating a graph, figure, or graphic.
This is your opportunity to connect with the investor and convince them that they can relate to what you are trying to achieve. Are there any examples of storytelling that you could give? How are you going to get them to ‘feel’ the problem?
The Solution
This presentation ought to concentrate on ONE solution, and it ought to give off an impression that is both clear and simple.
You need to respond to the questions about how to solve the problem. What are your goals, and how do you plan to achieve them? In what ways are you making the life of the consumer easier?
Do not hesitate to highlight any applicable use cases.
Market Size
Every pitch deck should include both the size of the existing market and the potential size of the opportunity. These are essential metrics to have.
Consider the problem in terms of billions, and always include reputable sources. This slide is highly significant since it will explain the potential outcome to investors interested in the opportunity.
The Opponents in the Race
Competition is present in every industry. If you cannot identify them, there is a strong possibility that you need to conduct a sufficient investigation. Put an end to everything and find out every detail of your competitor.
Advantages in the Market Place
What are some of your company’s competitive advantages in the market, and how do they compare to your rivals? What’s unique? What can you do better that will genuinely make a difference to your customers and your profits?
Present the unique advantages of your business that will stand out among others in the industry.
The Product
What are the perks and advantages of using it? Utilising photographs to demonstrate how your product or service is used in this space is a fantastic idea. Taking screenshots is a good idea for selling an online product or operating an app.
Traction
To obtain financing, it is optional for your business to be profitable or to have many paying clients. Nevertheless, the one thing that each possible investor will want to know is what kind of traction your business has achieved thus far.
What kinds of tests have you carried out? What kind of feedback can we expect from the active participation of users? How would you describe the path of your development?
Business Model
What does the fundamental model of a business look like in terms of how it brings in consumers and makes money? Be careful to avoid becoming too bogged down in this situation, as both strategies and tactics will be subject to change.
However, investors want evidence that you have given this issue significant attention and have a solution that makes sense.
Basic Financial Projection
Investors are likely to spend the most time on the financial information slide. It is one of the three slides in your pitch deck considered the most crucial.
The key elements to consider are:
- Your burn rate.
- The point at which you break even.
- The minimum number of users required to earn a profit.
Additional Investors
Who are the other current and prior investors in your company? During the early stages of the funding process, investors find great motivation in successfully soliciting funds from angel investors, friends, and family.
It demonstrates that other people have confidence in you enough to put their own money on the line for you. It acts as a form of social proof. Having well-known venture capitalists on your deck for later rounds can speed up the funding process and help you negotiate better terms.
Utilisation of Funds
What plans do you have for the money that you have? Should you spend it on rent or use it to buy up consumers and drive your competitors out of business?
Who is Affected by This?
Investors genuinely place their money in you, not the business or the idea. Either that, they would buy you out there and then, or they would just replicate it themselves.
Why should investors put their money on you as an entrepreneur or the founding team rather than someone else to hit a home run with this helpful solution? What kind of experience do you have working in this field and business?
Include one or two significant staff members who round out and reinforce the team if you find that this is an area in which you need to improve. Put together an influential and well-respected board of advisors who can ensure this endeavour’s success.
Say “Thank You”
This slide should have your contact information as well as a few statements from members of the press or other influential people in which they say positive things about your firm.
Why Do This Now?
In your pitch to potential investors, be sure to highlight the many reasons why now is the ideal time to work together. You can discuss the historical development of your sector and recent trends that have contributed to the viability of your solution.
It is essential to draw attention to growing tendencies in the market to avoid falling into the trap of assuming that the market has already reached its zenith.
Final Thoughts
In presenting a pitch to your potential investors, confidence is essential because that is where they can see that you are confident and determined to achieve your business goals. So make sure to practice every time before you start facing them.
