An investor pitch deck is a concise yet comprehensive piece of document or presentation that tells investors all they need to know. Understanding the 5 key elements of an investor pitch deck can be the difference between bootstrapping to your next milestone and skyrocketing your business with sizable funding.
What is a Pitch Deck?
A pitch deck for entrepreneurs or businesses is a presentation to the investors outlining your business plan, product range or services, target market – and potential for growth, fundraising needs, and key metrics like valuation and financial goals.
The venture capitalists or angel investors review this visual document and use it as a bedrock of further review and research before deciding to invest – or not.
Contents
What is the Goal of a Pitch Deck?
A pitch deck is the first step in the fundraising process and sets the tone for how the rest of your journey may go. It aims to get your prospective investors interested and excited about your company – and the solutions you provide – and eventually lead to an investment discussion.
If you have ever watched Shark Tank, then a pitch deck is your business introduction that gets the sharks to say, “Tell me more.”
5 Key Elements that make or break your Investor Pitch Deck
While each pitch deck is as unique as the business it’s introducing – and while anyone can have 10 different ideas on what should be considered important in an investor pitch deck, here are the top 5 that are essential.
- Introduction: Include a short overview of your business, why it came to be (or the purpose driving it), and your USPs that set it apart from others in your industry or niche. It should be simple and not too verbose. You can elaborate verbally during the meeting on any background your prospects may need.
- Your target market, the problem they are facing, and the solution you are offering: Consider this as one section around which your entire pitch revolves. This will be a breeze if you have good products/services. If not, you should probably rethink the foundations of your business.
- Traction: Showcasing your month-over-month growth (or quarterly – if your business has been around for a while) eliminates some fear of risk in those considering investing. List down milestones like the increase in the number of users, annual revenue return rate, and profit margins.
- Competition & Strategy: A strong competitive analysis and strategy to upscale in the current market conditions will brew confidence in your capabilities as an entrepreneur.
- Financial Health: A report showing how your business has been doing in the past is necessary. Be honest and transparent, and don’t be afraid to show ups and downs, but remember that people don’t like to invest in fool’s gold. They want to turn a profit, and this section of your pitch deck can tell them how soon they can expect to see it.
The final tip for a successful Investor Pitch Deck
Talk about your team during the presentation. Conclude your pitch with the investments and funding you seek. And remember, a pitch deck is only a tool to support your narrative – your story. Make sure the leads leave the table feeling like they know you like a close friend.
