What a deck of a startup seeking funding should look like

VentureFriends
Aug 28, 2017 · 5 min read
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Problem

Clearly and briefly: After explaining your vision, without using tons of text, start with the core of your presentation by answering one simple question: Why did you start this? “To raise funding” is a wrong answer, to make money is not a compelling answer either.

Solution

The magic happens not just because you have an idea that hopefully solves an actual problem but because you are ready to share, full of excitement and with a little bit of a thrill, your unique insight. The solution you are giving has to be as specific as it gets. It also has to prove sufficiently its uniqueness :the new way to do things .

Market opportunity

Describe the addressable market. Show your investors what’s going on by clarifying the market opportunity. It is important that you name and size the market you place yourself in.

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  • SAM or Serviceable Available Market is the segment of the TAM targeted by your products and services which are within your geographical reach.
  • SOM or Serviceable Obtainable Market is the portion of SAM that you can capture.

Product/Traction

Be sure to illustrate exactly who is the product user and what the value proposition is for her. A very effective communication tool is to describe a typical use case of the product, highlighting what it is the user gains from the usage (money, time, entertainment etc.). Be sure to provide some evidence of the value proposition either by testimonials or preferably by low churn rates from your existing customer base. Moreover, since what you are presenting today is an early version of the product, make sure that you have a coherent product map included in order for the evaluator to gain insight on how that value is going to evolve.

Business model

Analyze how you are planning to monetize your product and how much your company’s revenue potential will be in the next 12–18 months when you plan to raise another round. It is also useful to discuss the end game which would be the revenues 5–6 years ahead once you have captured a reasonable % of your market.

Competition

Describe which are the competitive advantages of your product. List all your major competitors (direct and indirect), highlight their strengths and also their weaknesses compared to your offering

Team

What’s the story of the team? Why will they be able to tackle the problem at hand? List the team, relevant/industry experience and background. The founders should have complementary skill sets and preferably a history of working together. Highlight what qualifies the team to start this specific business and why the urgency to do it now. In case you have any, list your key advisors as well.

Funding details

Funding has two main and sometimes contradicting aspects:


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