What Does An Investor Look For In A Pitch Deck?

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Here are 9 Tips

People in the startup world know that it is okay even if you are not able to bag the desired investment in initial attempts. However, it is absolutely important to assess your pitch. Doing it right and having done your homework properly gives you the confidence.

Closing an investment deal depends on multiple factors. Being able to map out an investor who is looking to invest or has a history of investing in similar businesses is most important. The stage at which your venture is also contributes to the match-making. To run any business, you need investment from the right source. Many find it analogous to dating. While there could be different reasons that your venture is still waiting for the perfect match, you must check if your pitch is not the reason for it.

A pitch needs to be a perfect balance between who you are and what proposition you have for the target audience. The pitch deck may come in handy on different occasions; from trying to fix a one-on-one meeting with an investor, to presenting on stage in front of an audience of investors, or to submitting an application on investment portals. Though each time the key elements would remain the same, only the structure would need slight modification.

Elements of a Pitch Deck

“VCs like to not take risks and bet on sure things”
Dave McClure
Founder, 500 Startups

The objective of the pitch deck is to convince the other party that your idea or product is going to make a difference so that you get the go-ahead. To impress the investors and get funding, your pitch needs to capture all elements that they generally look for. Here are tips to formulate a ‘complete’ investor pitch:

Introduction

If your pitch is able to grab attention in the first 30 seconds then half of your work is done. To achieve this, you will need to figure out the most interesting part of your business and then start with that. It can be your vision, traction achieved, the team or the technology you are using. The pitch should then be able to create a smooth transition to different segments.

Problem Statement

The pitch should talk about the problem or the need that exists and convince the audience that this problem needs to be solved. The founders should focus on a unique and efficient solution to the problem or need.

Value Proposition

The pitch should give a glimpse of the solution proposed to the problem/need. It needs to provide a brief on the value proposition.

Market Size

From an investor view, this section is one of the most important. After all you don’t want your investor to assume that the market size is small and not scalable. Hence, it is critical to identify the number of potential beneficiaries of your proposed solution and showcase the scalability in due course of time.

Business Model

It is now turn to put forward the plan for revenue generation. Mention all the revenue streams you have identified for your business. Put it in a structured way.

Competitive Landscape

Identify your competitors and regularly monitor them. Investors are keen to know how well you know your competition and how are you distinct from them. A detailed competitor analysis exhibiting your competitive edge is a big plus.

Team

This is a key factor that investors analyze in an early stage startup. Investors are looking for a combination of executor, thinker, designer, developer skills in the founding team. At the end it is all about implementation and it is the team that drives results.

How long the team members have been working together? Why this team is the best team to execute the startup plans? What kind of culture and chemistry does the team represent? Make sure you have answers to all these questions before making your investor pitch.

Financial Projections and Key Metrics

This section is for you to talk about your startup’s financial model; unit economics, revenue and expenses projections and any other financial metrics that you think is relevant.

Traction/ Market Validation

Every startup founder who is looking to raise funds will need to carefully evaluate and put forth the metrics relating to the traction generated. It can be revenue, number of downloads, number of users or visitors and so on. It depends upon the industry the startup falls under. In today’s scenario, the traction can make or break an investment deal.

A fine pitch helps the investors to filter out a business model that is scalable, self-sustainable, difficult to replicate, and has a team which can most efficiently execute the idea.

Sushil Baranwal is Founder, Morphedo
@imsushilb
https://facebook.com/morphedo

https://instagram.com/morphedoindia

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If you have a validated idea, then you can apply to the NEN IGNITE program

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If you have a well-developed MVP, a small team and demonstrated customer traction, then check-out your full eligibility for the WE VFT program here

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Are you looking to fine-tune strategy, organization & performance to get seed capital? You can apply to the WE Liftoff program.

Here is what we mean by a Validated Idea:

  • You have identified a ‘customer type’ that you are dealing with.
  • You have identified a problem that is critical for the that customer type
  • You have validated this problem with a ‘sizable’ set of customers so you know that it is a ‘real problem’
  • Your research and customer discussions shows that There is a large enough number of customers that are looking for a solution to this particular problem, and the venture can be financially viable and feasible
  • There are no apparent existing solutions or good enough solutions that are serving your customer type at this time for the problem
  • May have started working on a website/facebook/Instagram page to get customer reactions
  • May have worked on a prototype solution already
  • May have early traction with some customers