In short, yes. A pitch deck is essential. Considering that 29 percent of small businesses fail because they run out of cash, and 14 percent fail because of poor marketing, a good pitch deck is key for raising capital and convincing business partners to work with you. Even huge companies like Facebook and Google started with a pitch deck.
Why bother with a pitch deck?
Think of your pitch deck as your business card that presents the essential information about your company to investors. Your pitch deck should be a short presentation of your business plan that outlines all the key elements of your business, including your business model, your team, and the purpose of your company.
Some startups prefer to pitch their business case over the phone. Although this might sound like a great way to share your ideas without giving confidential information to a stranger, big-time investors won’t take you seriously without a detailed pitch deck. Most investors don’t like lengthy phone calls. They want a quick explanation of your company that helps them decide whether it’s a good fit for their investment portfolio. They’d rather flip quickly through a deck and ask questions later, if they find the business idea interesting.
Put your best pitch forward
Now that you know a pitch deck is a necessary tool for raising capital for your fund or startup, follow through with a well-designed, structured deck. Relevant information should be laid out in a way that’s easy to understand, and a professional layout helps you stand out from other startups. If you want to raise money, spending time producing a great pitch deck is well worth the effort.
Keep in mind what information is most important to investors – the business case, market opportunity, and return on investment for them. Unfortunately, many startups pull their content together at the last minute, resulting in crowded slides and missed KPIs. If an investor or business angel needs to spend too much time finding the important information, your deck will probably get tossed.
Don’t let your deck end up in the waste bin! Not only is a professional pitch deck is a great asset for investor meetings, creating a deck forces the founder to systematically analyze every part of their startup’s business model. By combing through your ideas step-by-step, you can identify loopholes and defects before bringing the business to market, setting you and your company up for success. For more specifics on what should be included in your pitch deck, check out 5 Keys to a Great Pitch Deck.