How to build the perfect Pitch Deck for your startup?
Tired of seeking the right way to write your pitch? Don't worry we have everything you need đ
It might be one of the most common questions we receive from entrepreneurs as well as their worst current fear⌠how to make a good pitch deck? How to gather months of hard work in 30 impacting minutes to convince the so-called investors? Whether it is a very difficult exercise, being able to pitch a start-up is an essential path for any entrepreneur willing to raise some money.
Thatâs why we decided to tackle this topic once and for all so that G. Ventures can help you become a real pitching professional that investors will be fighting for! đ
One last thing before we start about how to use this article! The best way to take full advantage of your reading is to see this as an exercise. Every header is like a specific slide of the deck and youâll find a quick bullet recap on how to apply the notions written directly.
Good luck! đ - Jordan & Paul ( đ feel free to contact us if needed)
â Before you start
The one thing to keep in mind before creating your pitch deck is that it needs to be synthetic and quick. We all love to speak during hours about our ideas and what drives us but unfortunately, investors may not have time for this⌠Just be aware that they see dozens of pitch decks like yours every day so you need to cover only the essentials of your project.
To do so, first, start with the definition of a short but very impacting hook. Whatâs your company doing? Looks simple you might say⌠But now try within 10 words! I bet you wrote more⌠Be simple but precise at the same time, this sentence with the length of a tweet must really highlight what your value proposition is. This will help you write the first piece of your pitch deck: the elevator pitch⌠â¨
đ Task: Write an intriguing summary of your companyâs value proposition within 20 wordsâŚ
đ Hint: Your summary should be understandable by anyone. Donât use complex terms but be sure that anyone can understand what your company does and can imagine howâŚ
đ Introduction - Letâs start with a bit of storytelling
We can now dive into the introduction part of your pitch deck which is usually like a short elevator pitch carried by powerful storytelling.
The goal is simple: drawing a short demonstration of the problem raised by your team, the solution brought by your company and the value it can bring to its customers. This part can sometimes be seen as the classic and boring part of the pitch because it sometimes seems easy and obvious for founders but itâs in fact one of the most crucial. âłď¸
Indeed, it will be the first impression that investors will have of your project and might underline your credibility to answer the problem raised. Finally, itâs very important that you bring some context with good storytelling, a mission, and a strong ambition to create impact and show your legitimacy to this project.
đ Task: Try to answer this simple question: âWhy does the company have this project?â and turn it into a short impactful story.
đ Hint: Use the 3 following pillars: the history/mission/struggle of the company, the problem that you aim at solving, and the ambition of your company.
đŽÂ Problem - There are no solutions, only problemsâŚ
Then comes the heart of the value proposition, dealing with the problem solved by your company. Itâs time to prove that the company solves a real issue thatâs not been treated before. To do so, use concrete examples that can be carried by âpersonasâ and testimonials dealing with the difficulties met by those people. đś
Itâs also important to link this part to the market with data, searches, and previsions to highlight numerical certainties and estimate the size of the targeted market⌠Finally, one needs to prove how much users are concerned by this issue and are seeking solutions. Our advice: bring as much data and numerical values to carry your speech and argumentsâŚ
đ Task: Try to answer this simple question: âWhat problem do you want to solve?â to demonstrate that the company is targeting a real problem that is not yet well addressedâŚ
đ Hint: 3 main steps:
Description of the problem and the difficulties encountered
Measurements/numbers/research that will allow estimating the market size
Demonstrate how users are affected by this problem and are looking for solutions (testimony, user reviewsâŚ)
đĄÂ Offer and value proposition - Better say: there are no problems, only solutionsâŚ
Basically, every problem has a solution⌠You should then expose more details concerning your value proposition and the offer developed by the company. What kind of product/service is it? What are its kinetics? What is the sales process? đ§
Everything deals with how you are creating value by solving the problem detailed before. To do so, address a short but precise synopsis of your offer: degree of innovation, distribution process, and small comparison with other offers on the marketâŚ
đ Task: Try to answer this simple question: âWhat is the offer developed/marketed by the company?â to understand the product kinetics (customer, supplier, influencer, etc.) and its sales format in order to place it in a market.
đ Hint: To do so, you might need to draw a short synopsis of the company's offer that addresses the problem, followed by a breakthrough (technological, usage, marketing, etc.) with existing solutions!
đ¤Â Technology - Nerds, itâs YOUR moment!
Dealing with your offer, you can start switching to the technology behind it and the innovation degree compared with whatâs already being produced on the market.
You should mainly tell about the technology principle and structuration, the technological components behind the offer, all the actors involved in its creation, and the potential barriers to entry for the commercialization of this technology. đ§âđŹ
Donât be too specific on technical details, it might not matter that much but insist on your expertise in this field and why itâs the best technology to answer the issue raised by your company.
đ Task: Try to answer this simple question: âWhat is the technology behind the offer, is it innovative, does it mark a breakthrough?â to understand the underlying technological choices behind your innovation as well as the potential difficulties coming with it.
đ Hint: First start with a quick introduction to the technology way of working and structure. Then, come the tech components of the offer and the actors involved in its creation. Finally all the potential barriers (mainly for pure innovation and Deeptech)âŚ
đŽÂ Demo Time - (The only fun part in fact)
And with every great technology comes a demo!
Reinsuring potential investors with a concrete presentation of your offer is a good practice. Beyond pure technology, the interesting point is to understand how users will interact with it and how itâs finally used. Two possibilities, either you can directly present an MVP or prototype of your solution, or you can still start with drawings and illustrations. đş
In order to illustrate this presentation, one can introduce the solution with a use case to highlight the added value of the solution with more impact. You should distinguish a few use cases of the solution, then, present a user path detailing the different interactions encountered by the user to use the different features of the product.
đ Task: Try to answer this simple question: âHow is the offer/technology used by the end user, directly or indirectly?â to illustrate through an example/simple use case the adoption and added value of the offer for the end user.
đ Hint: Present the user path: modeling the offer and the interaction between the user and the product/technology with as many use cases as possible.
đŻÂ Customers - You know the proverb⌠cash is king
Still related to the market, the importance to know its customers is crucial, so it can be presented in a slide if there are multiple ones or if it might sound unclear at a first glance.
B2C, B2B, B2B2C, B2G, or Business to whatever it is. This must be clearly understood by the investors. Also, the characteristics of the clients such as the geography where they are mostly present, or the budget theyâre willing to spend on such a solution. đ
It would show the investors that you have done your homework and that you know where you are going. Related to the solution slide, this one is a way to demonstrate that your product/service is a âmust haveâ, and not just a ânice to haveâ.
đ Task: Try to answer this simple question: âWho will pay for the product/service?â to understand who the company's real customers are and which ones participate/influence the sales act.
đ Hint: Begin with the model, then the segmentation of your addressable market (sector of activity, size, geography, consumer category)âŚ
đ Market - TAM SAM SOM ??? đ¤Ź
Amazing people bringing an innovative idea is great, but now the investors want to know which market you are targeting and how big it is.
Firstly, the target market profile. This is the first thing you should present in this slide. Present the sector/industry your project will be part of and demonstrate if it is already a mature market, if it is a growing one, or if it is non-existent for now. For this last option, a non-existent market can mean there are no needs, or that you think you are totally unique without taking into consideration the indirect other propositions, so take care on how you are presenting it to the investorsâŚ
Then, the data the investors are waiting for: market sizing. If the market you are going to address is not big enough, this is probably a no-go for the investors. The reason is that they canât take the risk to invest in a project that will be limited in terms of development and so future return for them. Therefore, the project should target a billion dollar/euro overall market, or at least one that weighs hundreds of millions with strong growth potential. đ
To present your market we recommend using the TAM, SAM, and SOM concepts.
TAM for Total Addressable Market, presenting the overall market demand for a product/service.
â TAM = Number of potential clients x Price of product/service
SAM for Serviceable Available Market, segmenting the TAM into a more precise geographical and technological scope.
â SAM = Target Segment of TAM x Price of product/service
SOM for Serviceable Obtainable Market, delimiting the portion of the SAM the project can realistically capture.
â SOM = Last Yearâs Market Share x This yearâs SAM
đ Task: Try to answer this simple question: âWhat is the company's target market (and market segment)?â to give a vision of the depth of the market and the keys to access it!
đ Hint: You can start with the target market profile and the definition of your ideal customer profiles, then market dynamics, and finally market sizingâŚ
đĽÂ Competitors - âTime to wear the gloves, Rocky!â
With a market comes actors selling their own proposition. Therefore, this is the moment to show the competitors already in place and to highlight your competitive advantage.
They might be direct or indirect, which means some are offering a similar solution and/or addressing the same customer category, others might propose something totally different, but that is the existing solution the market knows for now. Thus, there are always competitors, do not say you are lonely in this market. First, itâs barely true, and in some cases, it can be a red flag for investors⌠đŠ
For instance, to present it you can use a table showing the difference between you and the competitors, exposing technological differentiation, economical model, pricing, or any aspect you consider relevant to push your uniqueness compared to others.
đ Task: Try to answer this simple question: âWho are the players in the market in which the company is positioned?â to draw insights about the position of your offer compared to existing competitors and your probability of successâŚ
đ Hint: You can start with the target market profile and the definition of your ideal customer profiles, then market dynamics, and finally market sizingâŚ
đ¸Â Business model - The money-related stuff you know?
Getting customers means generating sales, and sales mean money! Thus, it is time to display the business model of your startup.
Investors want to know how you will make money, so dive into metrics that will expose the viability of the project. Clear up your sales model, whether you are selling directly to the customer, through an indirect approach, or as a pure player (online only). Afterward, explain the acquisition channels you want to follow to earn your customers and estimate how much it will cost you. Of course, present the sales format and pricing you will applicate, which can be through commissions, subscriptions, licenses, ⌠đľ
We told you it is the part where you will start using metrics, so prepare your calculator and letâs go for some mathematics. The investors will most likely ask you about it anyway.
Here are some metrics you can present: average basket, MRR, ARR, ARPU, LTV, CAC, conversion rate, churn rate, and a number of customers/salespersons. This article isnât dedicated to the explanation of every concept, so be sure to subscribe to our newsletter, we will present them later đ. A resource is linked at the end of this article to understand these metrics and learn how to compute themâŚ
đ Task: Try to answer this simple question: âHow does the company create value and make income?â to demonstrate the keys of your selling process.
đ Hint: Your presentation should summarize the sales model, then the acquisition process, the lifecycle of a customer (sales funnel and process with the related actions and employees), sales format and pricing then and eventually the metrics!
đ¤Â Team - #BalanceTonCofondateur
The next part is one of the most crucial for investors since itâs time to deal with the founding team.
Beyond the founder and project market-fits, VC analysts will bring close attention to the profile of the entrepreneurs. Most startups actually fail because of the composition of the starting team, and even with great pitches, the biggest risk for an investor is that the team in front of him is not able to achieve the venture they are promoting. đŞ
The goal is not to show that youâre the smartest, but that the team will be reckless and strong enough to face the challenges of your venture. Investors will mainly focus on three important aspects: the ambition and vision of the team, the complementarity of the profiles/personalities, and the cohesion and feeling surrounding the team.
The investors might also get interested in the backgrounds of the different associates ie education, professional past experiences, knowledge of the industry, and the potential supports backing the team.
đ Task: Try to answer this simple question: âWhy are you the best team to support such a project?â to demonstrate the strength, complementarity, and uniqueness of the team
đ Hint: Deal with the track record and background of the founding team (diplomas, previous professional experience), the composition of the advisory board, and current investors (if so).
đ Roadmap - Better have a Fiat Panda for this one they saidâŚ
Following your business model, project your roadmap over the following months and years.
If you have a clear vision of where youâre heading, and if you know how much money you need to achieve the major steps of your growth, the investors will be more attempt to follow you on this adventure. Indeed, theyâll grasp your ambition and be aware of the milestones that must be reached. âł
The timeline of your startup should expose the evolution of your product/service, through multiple key stages such as A/B testing, MVP, first sale, and so on. Be sure to cover the most crucial steps in the technical, commercial, or marketing parts of your business.
đ Task: Try to answer this simple question: âWhat are the key stages of the company's development: technical, commercial, marketing, etc.?â to highlight the successive major steps that your company might go through.
đ Hint: Start with the objectives and present the related actions using a clean timeline. Be ready to justify your choices to the investors!!
đ°Â Fundraising - Last but not leastâŚ
This is often the last data slide in the pitch deck, the fundraising part. Though you have dissected your roadmap and the future objectives you are planning to attain, this slide is necessary for the investors to put numbers on facts.
Actually, youâll more or less repeat what you will consider doing and achieve with your project, but with the funds, you are raising from the investors in front of you. Consequently, enumerate the fundraising usage into Capex and Opex broken down by category (R&D, Marketing, Sales, Recruitment, etc.).
đ Task: Try to answer this simple question: âWhy does the company need to raise funds and what for?â to detail how you will use the expected funds and which milestone it will help reachâŚ
đ Hint: Follow this frame:
Amount of the fundraising needed
Explanation of the milestone(s) to be financed by the fundraising
Summary description of what is expected once the fundraising is consumed (KPIs, achieved goalsâŚ)
Breakdown of the fundraising to detail how the money will be used
đ˘Â Numbers - A good touch to end your deck
This slide is not mandatory for the early-stage projects since they might not have enough data to exhibit. However, if the company has been existing for multiple years, it can be great to expose your past financial statements (income statement, balance sheet, and cash flow statement), as well as your financing plan. This is a way to justify your fundraising, and obviously, to transparently prove to the investors what you are doing with your cash.
đ Task: Try to answer this simple question: âWhy do you request fundraising and how can investors help in the creation of capital value?â to justify the fundraising and make it readable through financial statements (investors like numbers, like a LOT).
đ Hint: income statement, balance sheet, financing plan, and cash flow statementâŚ
Et voilĂ ! Now youâre ready to convince VCs to invest and follow you on the way to success! đĽ
Still, keep in mind that this pitch deck methodology is only one way to do it, but it can be adjusted depending on the business activity, the information you want to prioritize, or just the way YOU see it.
Feel free to add us on social media or to reach out for any questions!
đ Resources and examples - The icing on the cake
To help you create your pitch deck, here are some examples and resources that can be useful!
đ Visual template for your pitch deck
đ How to build your pitch deck by Eldorado
đ Pitch deck examples from the most famous world startups (Linkedin, Facebook, AirbnbâŚ)
đ Metrics Computation for your business model (MRR, ARR, ARPU, LTV, CAC, conversion rate, churn rate...)
A "blog version" of this article will be published after Summer Break đ