How to structure your pitch deck to attract investors
How to structure your pitch deck to attract investors
Creating a solid pitch deck is an essential step in attracting investment for your startup.
It will shape a potential investor’s first impression of your business, so you need to be able to communicate your point of difference clearly, but in the most succinct way possible.
It should show why your business is important, the gap in the market your business fills and how it will have an impact on consumers lives.
Below we’ve outlined the recipe for success when it comes to presenting a killer pitch deck.
Keep it short and sweet
People have limited attention spans. Add to that an investor who sees numerous pitches per week, and you know you have a finite amount of time to get your message across.
Brevity is key but your information needs to pack a punch in order to gain attention.
Keeping your pitch under 10 minutes is an ideal length of time for your presentation, as it means you will keep your delivery and message succinct while still being able to expand on your key points.
And if you have captured the interest of the potential investor, they are going to stick around and ask further questions after your presentation.
Demonstrate a clear value proposition
Your value proposition demonstrates why a consumer would come to your business over another. It’s what makes you stand out.
Your value proposition shows a clear understanding of an identified problem and the solution your startup provides to this problem.
A great pitch deck will clearly communicate what your value proposition is.
It must then be backed up with the appropriate research and data to inform this value proposition.
The facts and figures
Real data is key when pitching to a potential investor.
A good idea is nothing more than that if you don’t have the data to back up what you say your startup can achieve.
Market research, proper data tracking, accurate assessment of value and accurate growth projections are all essential data points to communicate in your pitch deck.
And the real data to validate your claims are one of the first questions a potential investor will ask about.
Define your target market
A target market is just that – a clearly defined group of the market that your product or service will be aimed at.
It’s vital to accurately define your target market to potential investors to show that your concept is aimed at a market that is looking for it, or need it (whether they know it or not yet).
In your pitch deck you need to clearly identify who this target market is and provide credible data that helps to define this group.
Detail your marketing plan
You will also need to demonstrate how you will go about communicating– or selling – your product or service to your target audience.
Essentially, you need a clearly defined marketing plan which shows how you will move from the point you are at now, to growing your brand.
Step through the key marketing initiatives to make this happen i.e. social media marketing, digital advertising, PR strategy or content marketing.
Explain your revenue model
Explaining your revenue model should clearly answer the question ‘how will this business make money?’
Explain the rationale for the revenue model selected and how this is scalable.
Some popular revenue model options include subscription, transaction, advertisement, commission or service-based.
The type of revenue model selected will depend on your business concept, but you will need to communicate clearly to investors how it works and how it can scale.
Where possible, try and give potential investors pricing models too.
This will help investors see how your concept compares with competitors and the market you are playing into i.e. mass market or a niche, high-end market.
Tell a story
So, we’ve got all the hard information but it’s important to not forget the emotive part of a pitch deck.
To really engage a potential investor we also need to inspire and motivate them towards an action, which means connecting on a human level as well.
A key way to do this is by weaving your story through the pitch deck.
Narrating the journey to what brought you to this point, or the story behind your startup, will help sell the concept further and foster loyalty and sincerity in your business.
Also, nobody forgets a truly great story. So, if you have one, make it a part of your business journey, right from the get-go.
Presentation is important
Dressing for the occasion, visually appealing pitch slides and preparing answers to potential questions are all key presentation points that will make an impression on a potential investor.
Being professional and taking care in your appearance and work can go a long way to how you are regarded, and have an impact on the delivery of your presentation.
Securing investment for your startup is no easy feat, but a solid, clear, well-structured pitch deck can go a long way to opening doors and getting potential investors talking about your concept.
Connecting with the right investor takes time and you need to continue to communicate passion and belief in what your concept can do – but in the most efficient way possible.
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