Pitch decks are a vital part of any new fund manager’s toolkit. People retain 80 percent of what they see, 20 percent of what they read and 10 percent of what they hear, so pitching your business idea on paper or over the phone just isn’t going to cut it.
When meeting with investors, visual aids can bring cohesion, clarity and even entertainment. The best visual tool for communicating your business plan to angel investors and venture capitalists is a pitch deck. A well-prepared pitch deck helps fund managers present details in an organized and visually appealing package.
Now that we know why a good pitch deck is important, let’s jump into the 5 things you can do to create a killer presentation.
1. First impressions matter
Your opening slide is your first chance to catch your audience’s attention and pique their interest. Begin with a quick summary of what your startup is about. Some companies find it easiest to pose a comparison to a better-known company (e.g. Postmates for groceries). While this can help your audience grasp the concept quickly, if you use a comparison be sure it makes sense.
If there is no comparison that fits your business idea, a concise summary will also work. Imagine you’re writing a Twitter post or Instagram bio for your company. How would you describe it in 140 characters or less?
2. Present the problem and your solution
This is a concise and clear explanation of what your company does. To help your audience understand, provide scenarios where your product or service comes in to address a pain point. Make sure the scenario captures what you’re trying to do and why.
3. Show the numbers
It doesn’t matter how great your idea is. At the end of the day, investors care about profit. If your business has already launched, bring out your data. Present number of early adopters, sales, paying users and any other relevant information. You should also show the size of your target market, particularly if you haven’t launched yet.
4. Do the math
Once you prove there is a market demand for your product, you need to exhibit how you earn money. This part of the pitch deck doesn’t need to be extremely detailed, but you need to be able to show who pays you and give a revenue projection based on your target market size – or current revenue increases based on the customers you’ve already secured.
5. Peel back the curtain
Investors know that a startup is only as good as the team running it. They’ll want to know who they’re giving their money to and that they’re qualified to handle it. Your pitch deck should include a slide with the quick background of each team member, or the management team if your company already has a good number of employees. This slide can include information like team members’ expertise, previous industry and other career-related relevant information. Keep it simple and elaborate during the meeting.
A good pitch deck is one of your most important tools when talking to investors. While the information it holds can vary depending on your startup’s stage of development, the deck should present important information in a tone that matches your company’s personality, and, in turn, your own!
Let Geraci Media help you reach your business goals through a well-designed pitch deck. Reach out to us here.