So, you want to create a start-up. You have a perfect idea; you have a plan and you have done your homework about how to work out your plan. Now, for your brainchild to take off you need a substantial financial push. You might have savings but, in all probability, it might not suffice. So now what? There are several investors out there looking for promising investments to make, and one of them can be yours. Presenting a pitch to a potential investor is known as a pitch deck. A pitch deck helps show investors what your business is all about.
The ultimate goal of a start-up after pitching the idea is to attain funding from the investors; this can, however, only be achieved when the investors believe that the start-up is worth their time and money.
The decision to make the investment lies in the hands of the investors, but what you can do is create an impressive start-up pitch. The manner in which you present your product in a pitch deck is extremely important.
When an idea is pitched to an investor, the data, figures, and numbers could be forgotten but a great story could have a lasting impact. For instance, imagine that you are an investor and a founder of a start-up is presenting his product to you. He only talks about the market opportunity and the customer base to which the product could be sold. Would you be interested? Probably not.
On the other hand, if a founder is pitching his/her product to you and does not startle you with numbers and his customer base at the very beginning but tells you a great story about the company’s origins and so on.
This could make you feel curious to know more about the product. A great story in a start-up pitch deck could definitely be more interesting than the previous instance. While creating and setting up a start-up, you have to research extensively every single element that is relevant to the product. While every little detail may seem important to the founder, it is impossible to convey the same to an investor within a span of around twenty minutes.
Moreover, if you are able to convey every little detail in those twenty minutes, it is likely that the investor may feel overwhelmed with the influx of information in your start-up pitch deck.
This is where framing your pitch in the form of a story can help. Doing so can create a connection between the one pitching (you) and the investor. It allows the investor to go on a little journey through your story and become more interested in your idea. It draws them in and keeps them focused throughout the presentation.
Here are a few things you can consider for a successful start-up pitch deck:
Point out the problem
Instead of beginning the pitch by showing the product, start by pointing out the problem. Try to point out the problem in such a way that the investor connects to it and feels like he faces the issue too. This instantly grabs the attention of the potential investor.
Focus on the solution
While presenting the solution, you have to ensure that the solution is clear and to the point. A complicated solution will do nothing but confuse the investor.
For example, the Airbnb pitch to their investors had only three solutions, i.e., users can save money while traveling, make money while hosting, and connect to the locals of the city.
Keep it concise
Every piece of information that you stumbled upon while researching is not what the investor should be hearing in the first meeting. It takes several meetings before the investor makes a decision and information like this can be stalled for future meetings. The first pitch is what leads to the next one which is why it is important that it should be concise.
Keep it simple
While the idea or product might be relevant to the niche of the founder, an investor might not know everything about it; therefore, using a lot of tech jargon is not the way to go. The point of the pitch deck isn’t to sound smart, it is to convince the investor that the idea is worth investing in, and for that, the investor needs to understand the idea. Keeping the presentation to the point and easy to understand is important.
If your product is a physical one, adding a lot of images of the product into the presentation is important. If it is a website that is already up and running, show the investors a glimpse of it. Include your product in the process of your storytelling.
Creating a start-up pitch deck can be daunting; it can be scary to put up an idea in a room full of people that could help fund your business towards its growth.
It is important to pitch the idea or product in a manner that sticks with the investor long after they have left the meeting room.
The art of storytelling engages the investors and makes them feel like a part of the solution to a problem faced by many. While the long-term goal is to acquire funding, the goal of the pitch should just be to get the call-back for the next meeting.
What is meant by pitch in a start-up?
Pitch allows the start-up founders to introduce their business to potential investors, customers and other stakeholders in a limited time-frame, bringing out the essential features and objectives sought to be achieved by the business.
What should a start-up pitch deck include?
A start-up pitch deck should give a holistic idea about the business being pitched. It should start with an engaging introduction, details about the product/service, the target market, competition in the industry, etc.
How do you make a start-up pitch deck?
Give an aerial view of your business in the pitch deck to the investors. Go into the details of the aspects that could influence their decision and help them come to an informed conclusion.
What should a pitch deck look like?
A pitch deck should ideally have a lot of visual content while you would be presenting. This includes PPTs, videos, statistics from reliable authorities, etc. Your verbal pitch should complement the presentation.
Why is a pitch deck important?
A pitch deck becomes important owing to the factor that it is essentially the first communication between the business founder and the potential investors. It helps them understand the venture and make an informed decision.