A pitch deck is a presentation that startups or businesses use to present their companies to potential investors. A good pitch deck should be around 10-20 slides and cover topics such as the startup's problem, the market opportunity, the team, the business model, traction to date, and the ask.
A successful presentation deck will show an investor what they want to see — the potential for profit in your idea. Investors look for certain things when deciding whether or not to invest in a company, with some points being more important than others depending on the type of investor.
Below are 7 points that investors are looking for in a pitch deck:
Information
When raising money for your business, it's important to include information about the company's background and history. This is because investors want to know what they're getting into and how the company has fared in the past. They also want to know that the management team is experienced and capable of running the business successfully.
By providing this information, you can give investors the confidence they need to decide. Remember, if you're asking people to invest their hard-earned money, you must give them all the facts. Otherwise, you're likely to find yourself without any funding at all.
Also, investors want to see the information about your business that is important to them, which may differ depending on what they're looking for. This will generally include financial projections, the company profile, and their competitive advantages, among other things. Appropriate use of images goes a long way here. A good example is the use of visuals to convey the necessary information.
Market Size
When it comes to investing, size matters, that's why market size is one of the most important factors investors consider when deciding where to put their money. After all, the larger the market, the more potential there is for growth. But what exactly is market size, and how can investors assess it?
Market size is simply the total value of all the goods and services produced in a particular market. To calculate it, you just need to add up all the revenue companies generate within that market. This amount can be stated as a percentage of GDP or in absolute terms. Either way, it provides valuable insights into the potential for growth in a particular market.
Investors need to consider market size when deciding where to invest their money. By taking the time to understand the potential for growth in a particular market, they can maximize their chances of success.
Competition & Competitive Advantages
When considering potential investments, it is important to have a clear understanding of the competitive advantages that each opportunity offers. This will give the investor a better sense of the risks and rewards associated with the investment and help them make an informed decision.
A variety of competitive advantages can be taken into account, such as the company's brand recognition, market share, pricing strategy, and product features. By taking the time to assess the competitive advantages of an investment, they will be in a better position to make a decision that meets their financial goals.
Investors will want a comprehensive list of your direct competitors and an assessment of how your product or service stands out from the others. Many companies have been successful by leading their customers through the sales process instead of directly marketing to them. Your competitive advantages will vary depending on the industry and your target customers — some common examples include a great user experience, a long-standing reputation, or superior customer service.
Management Team
If you're seeking investment for your business, it's essential that you include your management team in your pitch deck. Investors want to see that you have a strong team in place who can execute your business plan. Your management team should be able to articulate the company's vision and strategy and its role in achieving it.
Including your management team in your pitch deck shows investors you're serious about building a successful business. It also gives them a chance to get to know the people leading the company and assess their ability to achieve the goals you've set out. So if you're looking to secure investment for your business, include your management team in your pitch deck.
As such, it's important for you to be able to provide detailed information about each team member, such as their education and previous work experience. You should also include any awards or recognitions that they've received.
Your Unique Sales Proposition
If you're looking to attract investors, it's important to have a unique proposition. Whether it's a new product or a new take on an existing market, you need to have something that sets you apart from the competition. Investors are always looking for new and innovative ideas, so if you can show them that your business has what it takes to succeed, you're more likely to get their attention.
Of course, a unique proposition is only part of the equation; you also need a solid business plan and a passionate team to make your vision a reality. But if you can find a way to stand out from the crowd, you'll be one step closer to getting the funding you need to grow your business.
Investors want to see how your product or service will help you stand out from the competition, including how it might benefit your target customers. You should also convey the story behind your company's inception — this will help investors see what motivates you and may help them to identify with you on a more personal level.
Evidence of Product/Market Fit
There are a few key pieces of evidence that investors look for when assessing whether a product or market is a good fit. First, they'll want to see actual customer demand for the product or service. This can be demonstrated through surveys, customer interviews, or sales data.
Second, they'll want to see that the company deeply understands its target market. This means having detailed knowledge of the customer's needs, pain points, and buying habits.
Third, they'll want to see that the company has a clear and executable plan for reaching its target market. This includes having a solid marketing strategy and a sales process that is efficient and effective.
Finally, they'll want to see that the company has strong financials. This means having a sound business model with realistic projections for growth. If a company can demonstrate all these things, it will be in a much better position to attract investors and secure funding.
Financials
You must include financial data in your presentation while pitching your company to potential investors. This data will give investors a clear understanding of your company's financial health and performance. Additionally, financials can help investors assess the risks and opportunities associated with investing in your business.
By including financial information in your pitch, you are more likely to attract seriously and committed investors ready to provide the capital you need to grow your business.
You should include specific details about your revenue, expenses, and timelines for reaching key milestones, such as launching a new product or service. It's important to understand that investors don't want to break even and will only expect returns when you're profitable. Still, they need to see that their money is being spent efficiently to help your business grow.
One great way to make pitch decks is to use a free infographic maker that offers various pitch deck designs for every pitcher out there. Here are some pitch deck examples from their website to give you an idea!
Image Source- Vennage
Conclusion
The main points made in the content are that a unique proposition is important for attracting investors and that financials are also essential when pitching a business.
Use Venngage to make your own pitch deck and stand out from the crowd! With their easy-to-use platform and various designs, you're sure to create a presentation that will wow investors and help you secure the funding you need to grow your business.
The content of your pitch deck will depend on your business, but it's important to be able to convey the main points quickly. You can't afford for potential investors to miss something in the time that they are only available to review it; you don't even want them to need more than ten minutes to finish checking your pitch deck and still not get interested.
Always remember the best pitch decks are the ones that get investors to say yes.
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