The Ultimate Guide to Crafting a Winning Investor Pitch Deck

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Last Updated: 3/20/2020

For an entrepreneur, your business is your baby. There’s a moment when your baby is a newborn and you have been all alone feeding him and nurturing him until he has grown to a stage where you can now present him to the entire world. For babies, this is known as the end of the quarantine. For businesses, it is an investor’s pitch.

An Investor Pitch Deck is a tool that entrepreneurs employ to present their businesses to those who are looking to invest in it. A pitch deck can be assembled through a sophisticated platform or it could just be a simple PowerPoint presentation. The most important feature of a pitch deck is that it has to communicate exactly what your business is, where is it going and why do you need money to make it a successful venture.

To help you in this endeavor of presenting your ‘baby’ to investors, here’s the Ultimate Guide to Crafting a Winning Investor Pitch Deck.

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What’s an Investor Pitch Deck?

A pitch deck is a comprehensive presentation that includes several key details of your business. These details will communicate the most important information about your business to those who are looking to invest money in it.

The ultimate goal of a pitch deck is not necessarily persuasion, but to some extent yes, you do want to persuade your audience, but not through fancy words or exaggerated statements, instead, you’ll use hard facts and well-researched data to prove your business is worthy of their money.

What’s the Common Structure of an Investor Pitch Deck?

The structure of a pitch deck is not carved in stone. Nobody has the ‘perfect’ structure, as businesses are all created differently to some extent and there are details that may be relevant for one, while entirely irrelevant for another.

Nevertheless, there’s some key information that most (if not all) winning pitch decks should include:

Introduction

A brief description of you, your company and its ‘pitch’. This pitch can be a slogan or maybe the vision of your business. It should be designed to captivate your audience in a way that they feel compelled to keep listening.

Problem

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In this portion of your pitch deck you’ll answer this question:

Which need is your product or service looking to fulfill?

You will have to describe the nature and key details of the problem you have identified and why you consider it an unfulfilled need.

Signup for a free webinar: Raising Capital for Your Startup: How to Raise Money for your Business Venture from Seed to Series-A

Solution

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This is not necessarily the point where you introduce your product or service. Instead, the ‘solution’ section is a statement that summarizes how do you think the problem you described above should be solved.

Description of the Product or Service

In this section of your pitch deck, you will describe the product or service you intend to launch to provide the solution to the problem you have already described. All the specific details on how your product functions and all the technicalities of it should go here.

Your Team

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Most entrepreneurs start by themselves or they have a partner who works alongside them to first develop the idea to a point where it makes sense. After that, a team is probably incorporated and they become a centerpiece of your business’ success. Your investors want to know who this team is and why do you think they have the skills required to take your ‘baby’ to the next stage of its growth.

Make sure you present each of the key members of your staff respectfully and make an effort to highlight every single aspect of their professional profile that matches the path you are taking your business on. They are one of the most valuable assets of your company and therefore you want to make sure your investors see them as such.

Signup for a free webinar: Raising Capital for Your Startup: How to Raise Money for your Business Venture from Seed to Series-A

Competitive Advantages

What makes your product or service stand out from the crowd?

If your pitch deck can’t offer your investors an answer to this question you’ll probably lose a significant portion of their interest. In this section, an entrepreneur must identify the key elements that make the product or service they intend to bring the market unique and relevant. You should be able to explain why a customer will be willing to buy what you sell over what others are offering.

Market Research

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How big is your market? Who are your potential customers? Are they willing to spend on this?

These are some of the questions you’ll be looking to answer in this section, in order to provide assumptions based on hard data (well-researched information coming from reliable sources) to assure investors that there’s an active market or niche ready to buy what you are selling.

Competition

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Even though most entrepreneurs think that nobody else is doing what they are, this is commonly not a true statement. In a globalized market, there’s commonly at least one company doing or intending to do what you are doing. Therefore, you should research your current or potential competition as much as humanly possible to assure your future investors that you know who they are and you have a strategy to beat them.

Signup for a free webinar: Raising Capital for Your Startup: How to Raise Money for your Business Venture from Seed to Series-A

Business Model

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For most tech companies, this section answers the question of: How do you plan to make money out of this?

A business model is a description of the way your company brings money in. Whether you plan to sell the product online, at retail stores or if your model is subscription-based, you have to explain to your potential investors the pricing details, the available alternatives your customers will have and how you plan to acquire those customers profitably.

A winning pitch deck demonstrates that this is not just ‘an idea’. It is a business with a concrete plan to make money.

Financial Projections

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This is perhaps one of the most technical portions of the pitch deck and also, the one your investors are probably going to look at very carefully. Keep in mind your investors are probably business-savvy and finance-savvy, they made money somehow and that usually gives them the experience to assess financial projections with an expert eye.

This section includes forecasts of the next 12 months or even 3 years, depending on how mature your business is, and here you’ll outline the financial future of your business based on several assumptions associated to how much you plan to sell and how much of that will be turned into profits. The usual pitch deck contains a projection of the company’s main financial statements (Balance Sheet, P&L and Cash Flow Statement).

Signup for a free webinar: Raising Capital for Your Startup: How to Raise Money for your Business Venture from Seed to Series-A

Investment Opportunity

Here’s the part where you throw a number. How much is your business worth and how much of it are you looking to sell? This means that you’ll present your investors with some alternatives regarding how they can come on board, either as common shareholders or through some other arrangement that may include a combination of debt and equity.

The valuation of your business is really important and you should be able to explain to your potential investors why your valuation is accurate and what are the financial fundamentals backing that number. A winning pitch deck will provide a data-backed valuation figure.

Bottom Line

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While these are some of the most common sections of an investor pitch deck, many others can be added to it or you could create sub-sections of these to further describe some of the details outlined in the broad sections.

In any case, these are the most essential pieces of information you want to communicate to your investors to make sure they understand what your business does and how you plan to make money out of it.

Signup for a free webinar: Raising Capital for Your Startup: How to Raise Money for your Business Venture from Seed to Series-A

Written by

Pro Business Plans works with clients to prepare business plans, pitch decks, and other materials for investment and market research. | www.business-plans.com

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