Startups are in a unique environment where the rules of the game are constantly changing. What worked two years ago may not work today, and even worse may actually harm your company instead of helping it. One example of this is the pitch deck, which used to be considered a way for startups to explain their idea or service quickly and easily to potential investors.
Today, this tool has changed dramatically, mostly because of the rise in popularity of crowdfunding platforms such as Kickstarter and Indiegogo where anyone can present their product or idea on a public website and find people interested in funding it. A new level was also added with mobile apps such as Fundable that allows entrepreneurs to launch their campaigns from anywhere in the world within minutes, automatically receiving all legal and financial information for investors.
So, although the first impression of our product or idea is extremely important, what may have worked two years ago might not work today. That’s why if you are planning on launching a Kickstarter campaign soon I recommend reading this article together with one other similar resource to determine which elements should your pitch deck contain.
#1. Company overview
The way you introduce yourself and your company can make or break interest in your project. After all, it’s easier to invest in something that comes from an already established company with its doors wide open rather than in some random startup that until yesterday didn’t exist. Also, potential partners often look at the team behind the project to see if their expertise meets expectations so try to mention at least one of your most valuable employees
#2. A good presentation deck focuses on the product
Before you continue with the rest of the deck, spend some time explaining what kind of product or service does your company offer. If it’s a physical product try to include photos, if it’s an app or software provide screenshots instead. You can even create a small video for this part so investors have all information available in one place. This will also prevent you from repeating yourself later on (although that’s not necessarily bad). Ask yourself this question – Would I want to buy my product/service if I was an investor? If your answer is no then re-think your approach since excitement is extremely important when trying to sell something.
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#3. Market analysis should top your investor deck
Investors care about numbers more than anything else so it’s important to include a detailed analysis of your target market. For this part of the pitch deck, you can either provide some data from other companies in your industry or use online tools to conduct thorough research. Try comparing yourself with competitors, focusing on things like revenue, growth rate, and projected sales for the next year. Also, try using graphs to show where you want to be in one year or five years down the road since investors are always interested by long-term results.
#4. Product development plan
Even if it sounds great in theory, no investor wants to invest money into an idea without any proof that it will work. So if possible include a small section dedicated to how your product or service is being developed. This may include specific milestones or even a timeline so investors get a better idea of what to expect from you in the near future.
#5. A startup pitch deck should always have a sound financial analysis
No matter how innovative your product, company, or team might be, no investor will ever put money into something that doesn’t show promise of turning a profit at least within the first few years after launch. So if possible provide a financial plan broken down by yearly projections and monthly breakdowns where necessary to demonstrate how your business is going to use investments and generate income at the same time. Make sure all numbers add up because one mistake can turn potential partners off for good!
#6. The top pitch deck examples always have a great marketing strategy
Now it’s time to talk about marketing since this part is often not considered enough when designing a pitch deck. Start by explaining why your target market needs your product and be as specific as possible. Then try to provide data from similar markets for comparison purposes. You can then go on to provide some statistics about how you plan on marketing the product, both online and offline since a good strategy will allow potential investors to envision how sales will meet projections.
#7. Your pitch deck presentation should talk about the competition.
Of course, mentioning competitors is not always a good idea but there are certain instances when competitors should be included in the pitch deck. For example, if you already have patents or contracts with known companies this may be cause for alarm among investors (especially regarding future collaborations), so make sure they know who’s who before it’s too late!
Conclusion
Your pitch deck is a concise and compelling summary of your business that will convince investors to invest in you. It’s important for entrepreneurs to understand the 10 elements their pitch should have before they start writing one. This article covers those 10 elements, as well as how to use them effectively. These tips are helpful because many people don’t know what goes into an effective presentation!
