Crafting a Compelling Investor Pitch Deck
The genesis of our company really started right here, crafting pitch decks for early stage startups and that itself has helped us evolve into the product-focused think tank that we are today. When so many companies today look exactly the same, tackle the same problems, and have the same pedigrees, the pitch deck goes a long way towards convincing investors that your vision and why you do what you do should compel them to invest over the hundreds of other companies they see. Below are a few of the key themes that we’ve applied to the presentations we’ve done over the years for clients that have gone on to raise $110M in funding from top VCs.
Illustrate an emotional connection to the problem you’re solving
Most pitch decks end up being fairly dry or a chore to read through, which is the last thing an investor should be feeling. It’s no secret that investors make their decisions on team above all else — how it reads is a reflection of who they are and why they’re doing this. The best presentations always answer the question of “What’s their story — what motivates them?” more than “What problem is this business solving?”. Investors want to feel that emotional connection and personal investment into the problem so that when things go south, which they inevitably do, the founders won’t just give up and will dig deep to push this through.
Don’t get lost in the weeds
Founders often times get lost in the details and that’s one of the worst things that can come out in a pitch deck. Keep it concise, keep it simple, and focus your message. If you can’t tell the story with a few key points per slide in 10–15 slides, you’re going to lose their interest very quickly. As investors ourselves, we see dozens of decks every week and we’re skimming for key points, main highlights, and if those check out, we’ll continue the conversation. If you can’t tell a concise story in a prepared presentation, it would be fair to assume that it would be even worse in person.
Design is more important than ever
In the same way that in an interview you want to dress your best and look the part, your pitch deck is a first impression and representation of you and how you’d treat the company in everything you do if you got their money. It’s about so much more than just design for design’s sake — use the opportunity to help design tell your story better, enhancing it with visuals that help investors really understand what you’re trying to build. The bar for design has constantly been pushed higher and higher and it will actually hurt you nowadays if the design is sub-par. With the deck being passed around without you being there, it needs to be able to stand alone without the help of your carefully crafted pitch to support it.
Prove that people care about what you’ve built
You don’t have a business until someone wants to buy what you’re selling and vice versa, even if 1 person has taken out their wallet and given you money, you could be onto something. If you don’t have the slightest bit of traction or there isn’t a demonstration of a clear path to product market fit, you’re probably too early for most investors. From there, it’s more than just talking up the first 1,000 buyers, it’s how to get to the next 10,000 buyers because the strategy for the next will be very different from the last. Investors always want to know that other people care about what you’ve built because if no one else does, why should they?
Demonstrate your solid grasp of financials
This one often gets forgotten especially in early stage companies but having a grasp of how financials work and being able to logically project out and explain where expenses are coming from, how revenue is being funneled in, what projected tax rates and benefits could look like — all of it helps give investors confidence that you know how to run a company. If you’re raising a seed round, no investor is going to hold you to the numbers as the business will change almost on a weekly basis but it’s reassuring to them that you’ll be managing their money wisely.
Don’t oversell the vision of the company
For early stage companies in particular, this is a common mistake that new founders tend to make. Everyone knows you start with a singular focus for the company and evolve it from there with new markets, new product enhancements, or new sales channels. When the company is in its infancy though, it’s never a good thing to outline the Phase 2, Phase 3 and Phase 4 of the company — similar to the financials, the business model is changing all the time and it doesn’t mean anything or could even come off as unfocused. To take a company off the ground is a monumental feat in and of itself and there’s countless examples of startups who’ve wandered too far away too quickly and folded as a result. Focus focus focus, that’s what investors want to see.
Your pitch deck can be your greatest asset — it’s completely prepared in advance, it can be as refined as you can make it out to be, and it’s so easy to distribute that investors will just share it amongst each other without you having to do anything, so do it justice to put yourself and your company in the best light.
