What is a Pitch Deck? – A pitch deck is a quick presentation that provides an outline of the company’s strategy, goods, services, and growing momentum to potential investors or clients.
As an owner, you are certainly aware that your firm or concept needs funding.
This funding would frequently come from outside sources, i.e. persons who are not friends or relatives. This implies you’ll have to present your ideas to prospective investors in a manner that captivates their interest in investing in your company.
To put it another way, you’ll need to have a pitch deck.
Objective Of Pitch Deck
A pitch deck’s goal is to spark the attention or even excitement of investors in a firm, which can progress to the next meeting and the possibility of an investment conversation. A pitch deck may be an important tool in obtaining capital for a firm, and it is simply the initial phase.
A pitch deck also referred to as an investor pitch deck, is a presentation that assists potential investors in understanding further regarding the company.
As unusual as it may seem, the fundamental purpose of a pitch deck is to get to the next round, not to get investment.
Obtaining financing is a multi-step procedure. The very first step on the ladder is a decent, insightful pitch deck. You’ll want to provide investors with such a concept that captures the attention, interest and encourages them to collaborate with you.
A pitch deck presentation is often made up of multiple presentations that assist you to deliver a convincing tale regarding your company.
Tips For Making Pitch Deck
When creating your own pitch deck, keep the following points in mind:
Sample – Airbnb Pitch Deck
Be open and honest
Entrepreneurs sometimes desire to overwhelm investors with detail in their initial presentation deck, but less is sometimes more. Straightforward, simply expressed ideas outlined in bullet points and graphical information are more engaging than long paragraphs and can elicit inquiries or even follow-up meetings.
Prioritize the storyline over the statistics
A pitch meeting’s purpose is to attract possible investors. A collection of data and stats will not have the same impact as a good story. Entrepreneurs must tell investors tales regarding their businesses that are meaningful to them, including how customers utilize their goods or services to enhance their lifestyles.
Create it as a stand-alone deck
Following the presentation, a possible investor may wish to consult the pitch deck. Make sure the deck covers the most important information they require in print or PDF format.
Keep it up to date
Prior to actually obtaining money, businesses often pitch to a large number of possible investors. To retain professionalism and prevent presenting out-of-current material, confirm that pitch decks are updated with the most recent information, particularly key metrics and major accomplishments, before each presentation.
Leave out the bullets
When it comes to bullets, avoid those. Slides with bullet points are tedious and do not contribute to the telling of a story. Use bold fonts and keep the number of words on every slide to a minimum. Use imagery as much as feasible to assist communicate your tale and create an emotional connection to your thoughts.
Don’t exaggerate the market’s potential
Rather than top-down projections that say you “just need 1 % of a massive market” to really be profitable, emphasis on bottom-up predictions that outline your predictions for just how you’ll gain clients.
Unless you already possess statistics about how an early prototype of your product is doing, utilize it to help guide the remainder of your prediction.
Send your deck in PDF format
You’ll be required to either provide your presentations beforehand to investors or provide a copy with them. If this occurs, avoid sending Powerpoint or Keynote files. Share a PDF version. This ensures that everybody who views the deck would see it exactly as you planned, using the typefaces and designs you picked.
Check to see whether your deck can stand on its own without you presenting
Your pitch deck would always be preferable if you deliver it, but this should preferably be capable of communicating a few of your tales without your presence. Investors may want to go through the deck after you’ve finished your presentation, and it should have sufficient substance to withstand on its own and express several of your key concepts.
What to do after you pitched to investors?
Creating your pitch deck is just the beginning of your business planning process. Following a successful pitch, you should provide the essential planning paperwork to back up your presentation. The materials listed below are just a few examples of what you must be ready to deliver after your pitch.
An executive summary, often known as a summary memo, is indeed a 2-3 page outline of your company. It’s a paper that investors could distribute to their colleagues as well as other members of their organization to offer an outline of your company. It must be a written version as to what is in your pitch deck.
If you really are establishing a tech or medical firm, you might well be required to furnish more information about your technology.
Investors in such sorts of organizations would frequently like to have an expert examine their technical claims, so giving additional thorough paperwork, charts, workflows, etc may be necessary.
Detailed financial models
Any professional investor in your company would want to see through financial predictions for a minimum of the next 3 years just so that they could comprehend the basic hypotheses powering your estimates.
Investors would be interested in the plans for recruiting and employee-related costs, R&D costs, production costs, marketing expenditures, and so forth. Prepare a thorough sales projection, profit and loss projection, and cash flow forecasting. A balance sheet is extremely important as well.
Comprehensive market research.
You might well be prompted to submit more information about your target audience and previous market analysis. That is not usually the situation, however, if you already have the knowledge, you should be prepared to offer it in some manner. Again, this information should not be included in your original pitch deck but must be available if requested.