In this article you will find a comprehensive description of the pitch deck. Reading it will enable you to later prepare a pitch deck on your own or (if you prefer) to entrust it to us.
We have successfully prepared dozens of pitch decks for startups and companies in various industries, so the information in the content is based on practical experience.
Creating investor presentations for people who have no prior experience in this can be quite a challenge. The tips in this article should make it easier for you.
What a pitch deck is;
What an effective pitch deck should contain;
What the optimal form of a pitch deck looks like;
What are the alternatives to pitch deck;
To which investors are particularly attentive.
"Pitch deck" is a set of slides used by startups when presenting in front of potential investors, customers, partners or collaborators. The purpose of such a presentation is usually to convince the audience to invest in the venture or to convey key information about the product, service or company.
The name "pitch deck" consists of two parts:
"Pitch" - a term often used in the context of selling or attracting investors, meaning a short and concise presentation of an idea or product, aimed at convincing the listener of its value. "Pitching" here means the process of presenting and selling one's idea.
"Deck" - comes from the word "slide deck," which is linguistic shorthand for a set of slides. In the context of a presentation, it simply means a set of presentation slides.
In short, a "pitch deck" is a set of slides created to present and convince potential investors or partners to support a particular venture.
In Poland, the term "investor presentation" can be used interchangeably, as pitch decks are used in 99% precisely for talks with potential investors.
The pitch deck is primarily thought of by startups (budding entrepreneurs) who seek external funding from sources such as VC funds or angel investors. This is because an investor presentation is an industry-accepted way of presenting a planned or developing business. In this sense, it is the equivalent of a business plan used with government agencies, banks or non-professional investors.
There are at least several patterns of "optimal" pitch deck structure. The key is a logical and clear structure. As an example, consider the formula favored by Sequoia Capital, an established Silicon Valley investment fund. It presents itself as follows:
Purpose of the company
Problem
Solution
Time and place
Market
Competition
Product
Business model
Team
Finance
At the same time, it should be noted that this is only one example of the structure. It may vary slightly depending on the creator and the recipient. Most often, elements such as a roadmap, current traction or contact information are also added.
An investor presentation should have no more than 20 slides. The volume considered optimal is 15 slides, sometimes it can have less. The idea is to present condensed, clear and, most importantly, specific information. The average investor analyzes more than 100 pitch decks per month, so he or she is usually able to decide whether to continue the conversation after the first few minutes of reading.
Below you will find a description of a sample pitch deck structure along with a description of the contents.
This is where the company's slogan or the idea behind its creation is most often presented. This is a slide where there is relatively little content, and it is only meant to suggest the detailed content on the following slides.
This part is sure to arouse the investor's interest. The idea is to show numbers regarding the investment, e.g. the capital expected to be raised and its allocation, as well as other numbers that work on the imagination, such as patents held, awards and other achievements, previous investors. This is an optional slide that I recommend including only if it will actually work in your favor. Its purpose is to arouse the viewer's interest and excitement.
Developing a pitch deck virtually always involves presenting a slide titled "problem" or similar. It is about a market need that your company will solve. In a nutshell, you can put its description like this: "Our customers will be XYZ, who face ABC on a daily basis." The important thing is to make it plausible that this problem actually exists, is not solved so effectively in any other way, and potential customers will really be willing to pay a certain amount for help.
In this section, present how you want to solve the problem described above. Focus on unique benefits for customers. These may include time savings, money savings, health benefits, etc.
Describe the performance of your service or product in a clear way. Preferably use visuals or other eye-friendly and clear form.
This slide is nothing more than a competitive analysis. A properly executed competitive analysis should clearly show your advantages over your industry opponents. The best way to do this is to use graphics with X and Y axes or a comparison table. Remember that even if your product has no direct competition (no identical solution), indirect competitors should be identified. They may be completely different solutions that are used by customers for today to solve the aforementioned problem. Of course, your startup should stand out positively from the competition in your industry.
The construction of a business model is an important element for a potential investor. It is one of the most important slides in the entire presentation. It presents the way you want to make money.
The best thing to do here is to present strong evidence that makes it plausible that customers will actually pay for your service or product. The ideal scenario is a customer base you already have or pre-contracts in place. If you can't afford to present such data, present other strong arguments.
Investors prefer the so-called recurring revenue, that is, a subscription model of customer billing. This is due to the fact that acquiring a new customer is usually more expensive than keeping an existing one. Hence the popularity of so-called SaaS, i.e. IT solutions that are offered in a subscription model.
A good investor presentation cannot do without presenting the market. This is usually done by using TAM, SAM, SOM indicators. TAM - Total addressable market is the total number of potential if every company in your industry would buy your product. SAM - Serviceable addressable market - companies in the industry that are potentially willing to buy your product, e.g. because of the importance of the problem you solve in their daily operations. SOM - Serviceable Obtainable Market is the relevant portion of the SAM, i.e. the total potential customers you are realistically able to acquire in the next few years. E.g. 10% of the SOM market.
It is important that the numbers you present on this slide have coverage in reality. Market size is one of the investor's decision factors indicating the potential for rapid growth in the value of the company.
The vast majority of startups are not profitable (not generating profits) at the time they seek funding. However, it is much easier to convince an investor to invest when you are able to present traction (revenue) that is attractive from their point of view. It should be growing at a rapid pace.
Investors are most likely to donate their capital to entrepreneurs who have so-called market proof, i.e. clear market confirmation of demand for their product or service. Then the donated funds are most often invested primarily in scaling up the business, i.e. selling faster and more efficiently, rather than in developing the product from scratch itself.
Is it possible to get an investor with only an idea? Yes, it is possible. But it is much more difficult, which is important to know. Investors who invest at the idea stage are usually business angels (business angels) or pre-seed funds.
At this point (or at the business model) you can also describe succinctly and clearly how to attract and retain customers.
This is a calendar of events to come in the coming months and 2-3 years. It is also useful to show the recent past and what has been achieved. Most often, this slide includes a timeline. On it, milestones regarding the development of the company are shown.
On this slide you present financial projections for the next 2-3 years. If you are running a startup you can use indicators such as ARR and MRR, CAC or LTV.
It is useful to present financial projections in the form of ascending bar charts or in some other clear way.
Also indicate the important factors affecting sales and the cost side. In addition to revenue, it is worth indicating here the structure and level of costs.
When it's difficult to fit the whole thing on one slide, you can break that part into two slides.
Convincing an investor to cooperate may depend on the quality of the team responsible for the company's development. Most investors assess risk by the knowledge, track record, experience of the founders (founders) of the company, among other things. When you have an interesting idea, but so far have had nothing to do with the industry you want to operate in or with company or project management, your chances of taking off are lower.
Investors prefer teams, meaning a composition larger than one person. Ideally, everyone is an experienced specialist in his or her narrow field of responsibility within the company.
Key information about the founders is their previous work experience and the scope of their tasks in the company. It is a good idea to present silhouettes of all people (photos) which increases trust.
A professional pitch deck should not lack this slide. It is a concretized offer to the investor. You indicate in an understandable way how much money you need and what it will be used for. It's also a good idea to show the benefits to the investor (primarily the level of shares he will take). This is the so-called value proposition. Bet on clear and specific data.
Additional points with the investor can be earned for presenting the so-called cap table, that is, the position of the investor in a broader context - among all other investors. Current as well as future ones.
As the name suggests, you provide contact information on this slide. It's a good idea to present them in the form of a catchy "call to action," i.e. an incentive to get in touch.
Along with the pitch deck, you should provide the investor with a full financial model in excel. This is the accepted standard. The financials slide in an investor presentation builds on the excel model by presenting the key findings of the model in a clear way. On the other hand, the financial model (financial forecast) itself shows at a greater level of detail how you forecast the company's development.
It is important that the model is prepared by an experienced professional - a financier. The level of professionalism of the model is at the same time an indication of your preparation for the interview and, consequently, for running the company. Unless you are a financial analyst yourself, entrust this task to a professional.
The classic financial model includes such elements as:
Keep in mind that the financial model and the business model are two completely different things.
In the United States, creating investor presentations in Notion is gaining popularity. Notion is a notepad, "task manager", sometimes a calendar, the possibilities for its use are many depending on individual needs. You can also create pitch deck in it instead of traditional investor presentation creators like power point. Among other things, it allows you to upload videos, create drop-down lists (an investor only develops them if something interests him) or links to other sources of information.
It is also worth mentioning the traditional business plan or an abbreviated version of the business plan, i.e. the so-called canvas (business model canvas). A business plan is a comprehensive descriptive document presenting a plan for the development of a business venture. It is usually dozens of pages long and includes extensive analysis of the market, competitors or a description of sales and marketing. It is used for obtaining financing from a bank in the form of a loan or for grants rather than for discussions with private investors. A Business Canvas, on the other hand, is a representation of a business on a single A4 page. You can find detailed articles on both business plans and business canvas on our blog. Remember to choose the right format for your project and the right audience (readers). If you are planning to enter into discussions with a venture capital fund, a pitch deck is the optimal choice.
Pitch deck and elevator pitch are two terms with different meanings, although they are sometimes confused with each other. At this point it is worth explaining what, so an elevator pitch is. It is a short, persuasive presentation of an idea, product, service or project. The name comes from the concept of presenting the main message in the time it takes to ride an elevator, which is usually 30 seconds to 2 minutes. The goal of an elevator pitch is to capture the attention and interest of the listener in a short period of time.
The key features of a good elevator pitch are:
Concise: condensed information that fits into a short period of time.
Clarity: no jargon or complicated explanations.
The goal is to engage: it encourages people to ask questions or take further action. It arouses the listener's interest and makes them want to learn more.
A well-constructed elevator pitch can be invaluable in many situations, such as investor prospecting, job interviews and conference presentations.
See a sample elevator pitch:
"Hi, my company, Well Done Business, specializes in creating personalized business plans for startups and enterprises. We know that every idea is unique, so we don't use pre-made templates. Instead, we analyze your specific needs, market and competition to deliver a plan that will not only convince investors, but also help you understand and achieve your long-term goals. In as little as a week, we deliver complete, professional and affordable business plans that really make a difference. Want to see how we can help your business rise to the next level?"
Filip Samczuk
To be prepared for tough questions from investors, it's best to figure out for yourself where your project (pitch deck) has weaknesses and how you can answer any objections.
Each investor may give importance to other elements, but at the same time most of them are usually of interest:
For an investor to earn enough, a startup should grow a minimum of several times at a very fast pace. This is possible only when the market is sufficiently capacious, plus the company has a chance to expand abroad. Investors prefer this type of project.
Investors care about the rapid growth of the company's value, and this largely depends on the business model. In addition, the business model shows the founders' preparation for the business. The business model must be convincing and, above all, create the impression of being justified and viable for successful application.
Building credibility of the venture and its creators is facilitated when the team is of high quality. The investor is usually mainly interested in the entrepreneur's previous experience. Optimally, if this is not his first startup, and he has already succeeded in the previous one(s). Of course, this is a statistically rare case. The completeness of the team (the presence of other specialists on board) and the appropriate distribution of shares also matter.
When creating your pitch deck or evaluating a presentation prepared by an outside developer, pay attention to several elements.
Focus on the most important (specific!) information, don't create long descriptions.
Form matters. Ensure a professional layout.
Lay out an engaging narrative (storytelling) in your presentation by backing it up with hard figures.
You can change your pitch deck and adjust its content based on your experience and tips from conversations you have already had with investors.
Answer: A pitch deck is a presentation designed primarily for investors, presenting information about your company, product or service, business model, market, team and other key aspects of your startup.
Answer: Pitch deck is often an indispensable tool to effectively communicate the vision, mission and value of your startup to potential investors, but also to partners or customers in a condensed and accessible form.
Answer: There are numerous examples of pitch decks available on the Internet. Sites such as SlideShare and dedicated startup portals often provide these materials as inspiration for other entrepreneurs.
