How to build a winning pitch deck with Ideaction
If you are thinking to launch a startup, then probably the term pitch deck is pretty familiar to you. Therefore, you already know that a pitch deck is the first and primary marketing tool if you are about to get the investors on board. Even though it might seem an effortless task to accomplish, getting some advice from experienced people that have done it hundreds of times is definitely a good place to start. Ideaction has significant expertise in helping startups to build their product from scratch, including creating winning pitch decks. For this reason, we decided to take you through the steps that will effectively make your pitch deck appealing to the investors.
What is a pitch deck?
A pitch deck is a breath presentation designed to explain or showcase your business idea to potential investors, venture capitalists, businessmen and get them rolling up their sleeves and pour in the money. Whether you are striving to raise the first money for your startup or trying to get into an accelerator program, you need a killing pitch deck to make your business idea pop. No matter what your purpose is, a deck you send out should be: easy to digest, not blinding with visuals, elegant, not overwhelming with a million words per slide and, lastly, a tool to lock in a meeting. An effective pitch deck should contain around 10-12 slides that comprise the main touchpoints of your product idea. But let’s take it step by step.
- Intro slide: Dedicate the first slide to only the company name and a one-liner about the business. Keep it short and specific.
- Problem: Build the second slide around the Pain Point of your idea. Design a problem that you and other people are facing daily, one that literally causes a lot of pain. Your goal at this point is to get the audience to agree that there is a problem that can be solved with an extremely high growth company. This needs to be crystal-clear for them to understand.
- Solution: Once you described the problem, it’s time to give a proper solution. This is when you reveal how your product or service will solve the problem. Likewise, you should show your unique value proposition that is directly connected to customer’s challenges. Don’t forget: the less complicated- the better.
- How it works: Add a few screenshots of your product and explain in simple steps how your technology works. Don’t get too technical. Investors might not be technical gurus and there is a chance you might lose their interest right from the start.
- Product Time: Make a short timetable that will show where you currently are, what are the upcoming milestones. This is an important communication tool that lets the audience know what the product is going to do and when.
- Business model: This is an important point to touch in your pitch deck. Running on enthusiasm alone is not enough for a startup. Even though your vision is crystal clear, the real question is How do you make money? Yes, as a startup, you need revenue. Relying on advertising only is not a good strategy. For instance, You’ll need around one million people on your service for that to work. To make investors take the risk and put their money into your idea, you should explain to them how you are going to run your business until it starts to make profits.
- Market Size: It might sound sophisticated, yet it’s quite simple. Before launching a product, you should determine the potential number of individuals that could be your potential buyers. First, determine the total available market (TAM), which means the total market demand for a product or service. Secondly, according to TAM, find the Serviceable Available Market (SAM) that is the segment of the TAM targeted by your product which is within your (geographical) reach. And finally, show the Serviceable Obtainable Market (SOM) which is the portion of SAM that you can actually capture. This is the number of your potential clients that you can convert into real clients. Keep in mind that If you’re looking for venture capital money, this number needs to be significant.
- Go-to-market strategy: I believe this is one of the most critical pieces of the deck. Obviously, the investors wouldn’t like seeing that you’re going to spend all of their money on advertising and use just social media to get the word out. Better, tell them who your channel partners are. Who can be a champion for you to build a recurring loop of business? They expect a well-thought-out plan that you can execute.
- Competitors: Show who in your space has raised money and is possibly on a similar track as you.
- Management Team- Your startup can’t exist without a team. Let the investors know your team members. They should see that you have a professional and experienced team that will help you turn the idea into a viable product.
- Metrics: A business or a startup can’t run without numbers. Do some calculations and present all relevant information associated with numbers: your customer acquisition cost, the lifetime value of a customer, your margins, etc. If you don’t have them because the startup is too early in its life cycle, you should have estimates based on competitors or others in your sector.
- Traction and highlights: Show the investors the money you already have: your monthly recurring revenue, annual revenue. Maybe you have partnerships with big names than can afford you additional financial support in your business. Investors will be more likely to invest in you, when they see that you are actually doing something by yourself on this matter and not only wait for ,,the golden fish’’.
- Capital: This is the ultimate question. The ask. Tell them how much money are you raising, and for what purpose. Be clear-cut and show the investors where all the money will go.
- Ask: This is an optional slide. Even if you are not asking for money, take advantage of the great audience and ask for connections, advisers, an experienced network of business, mentorship.
Finally, we recommend you to brainstorm all the potential questions investors might have during the Q&A session. The most possible questions are:
- What are you going to do with the money?
- What are you going to do first: product or sales?
- What salary do you expect to be paid?
- Who do you have in your team? Sales, Tech and Industry experts are the 3 main people. Sales should have the highest salary in the company.
- What is your story behind the idea?
Beyond any doubt, your answers will play a huge role in the investor’s decision on funding you or not. So make sure you are well prepared.
This is the structure we follow when creating a pitch deck, but of course, every deck should be tailored to address specific needs. That’s why at Ideaction we customize it for you. Moreover, the pitch deck is only a part of the product and our experienced product designers and development team will help you develop your idea and craft the best product possible from the ground up. Contact us directly or schedule a free consultation and let’s get down to business!