In this article, you will get some tips and see some principles to make an attractive and realistic pitch deck. Indeed, the objective is to convince investors. The essential slides to make a good fundraising deck are the following:
- Market problem : present the problem observed on a market.
- Solution : what do you have to offer, the solution to the problem ? This is your pitch
- Market presentation : market study (size and growth)
- Presentation of your products and/or services : detailed presentation of what you offer.
- Business model : what is your business model and your billing method ?
- Competitive analysis : your positioning and your strengths in relation to your competitors
- Team : who are you and how will your team support your project and your growth ?
- Financial projections : how do you project your company in 3 or 5 years ?
- Breakdown of your financing needs : how much do you want to raise and for what purpose ?
Advimotion is a financial consulting firm that assists startups and SMEs in obtaining non-dilutive financing and equity fundraising. We also act as advisors in business sales transactions to best represent the interests of sellers.
We offer strategic consulting and outsourced CFO services to ensure the financial and operational monitoring of your business. Finally, we take care of the drafting of investor documentation : business plan, pitch deck, creation of reporting files and valuation calculations.
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Building a pitch deck for a fundraising event is a difficult exercise. In 10 to 20 slides maximum, the entrepreneur must generate enough interest from investors. Indeed, the objective is to get an appointment.
Not all pitch decks are alike. However, some slides are important in a pitch deck for a fundraising. Moreover, the structure of good presentations is often similar. In the mind of the reader, a pathway should be created from the market presentation to a problem and finally how the company will solve it. The creation of value for both the startup’s customers and investors.
The slides that absolutely must appear in a pitch deck for a fundraising
- The market problem : Describe the problem that your company will solve. This can also be your “mission”. This market problem can be broken down into sub-problems. For example, for a company that has developed an IT tool in a competitive environment, the justifications for a new offer may be that: other solutions are (i) costly, (ii) incomplete and/or (iii) difficult to use (and why).
- The solution : This is the solution that your company will provide. You must present your product/service in a simple and understandable way.
- The market study : This is the presentation of the market in which you evolve as well as its size in monetary terms but also in growth. In addition, you must focus on the addressable market.
- Presentation of your products and/or services : What do you bring and what is the differentiating element of your project ? This is a highlighting of your solution in relation to the market.
- The market study : It is a question of presenting the market on which you evolve as well as its size in monetary terms but also in growth. Moreover, the idea is also to focus on the addressable market.
- The business model : This involves explaining your company’s economic model and billing method. In 2009, Airbnb raised its first $600,000 in funding. In their fundraising pitch deck, their business model is described in one sentence “we take 10% of all transactions”. This slide is very important because investors can quickly estimate, based on the size of your market and your potential market share, what your company’s growth potential is. However, many funders know that a startup may need to pivot and evolve its business model for different strategies (entering one market, having a loss leader for another, etc.).
- The competition : The competitors already present. They (almost) always exist already. How many are there ? Where are they ? What do they offer and at what price ? What is the competitive advantage of your startup over the competition ? In this section, direct and indirect competitors are presented and your strengths are highlighted.
- The team : Describe the key team members and their qualifications. Indeed, it takes the right people to execute a good idea.
Financial projections and key metrics: Show important figures that prove the potential of the startup: number of customers, conversion rate, a start of turnover, projected income statement etc. Concrete data will give confidence to your potential financiers.
The slides that may appear depending on the project
- Market validation : This involves identifying the market. Is it a business market, a consumer market, a leisure market, a consumer goods market? What does it represent in terms of sales volume and revenue ?
- The Go-to-market plan and traction : How to reach the customer ? This slide should be included if you are raising funds before marketing your product or service. Finally, a clear plan for reaching your customer base should be presented.
- Use of the requested funds : How will the money be used to grow the startup ? Here, you need to break down your funding requirement into major expense items. Moreover, it must be justified in a precise way within your financial forecast.
Therefore, a pitch deck for fundraising must make you dream. Indeed, potential investors must say to themselves “what a great idea, there is a big potential! For this, it should not be too formal. It should not contain too much text but rather key figures and above all tell a story. Finally, beyond the facts and figures, the pitch deck conveys a certain emotion. It is an advertisement for your startup.
So, if you need support to create your pitch deck to raise funds, don’t hesitate to contact Advimotion.
Advimotion, your growth partner.