What Are Investors Actually Looking for In Your Pitch Deck?
All businesses, especially those that are just getting started, require investors. Some investors may be satisfied with simply providing funds, while others will want greater control over how their money is spent and what kind of return, they will receive.
This article stems from decades of pitch deck consulting. It deconstructs what investors look for in a pitch deck so you can go into your pitch meetings knowing you’ve covered all of your bases and done your homework.
Your service or product. After establishing the issues that your consumers are facing, the next few slides are all about YOU. First and foremost, provide a high-level description of your solution for the unmet market demands outlined in the previous slides.
Examine how your products differ from one another. Persuade your audience that you have a superior “mousetrap.” You want to make sure your slides don’t leave any gaps in your story or unanswered questions.
- The Team
Your team slide should only contain profile headshots of your essential team members, as well as a one- to two-sentence bio and job title for each of them. Simply choose the most important fact that is relevant to the startup’s success and the success of your investors.
This group should have a diverse range of abilities, not only for solving the technical aspects of the problem and developing the specified solution and product but also for turning this into a viable business.
- Describe the issue you’re attempting to tackle with your company.
For your company to be the answer, there must be a problem. This is where your company’s worth and market credibility are demonstrated. What is your target audience’s pain point and who are they? Because potential investors may not be aware of the problem you’re trying to solve if your product is specialized, you should present facts or evidence to back it up.
- Outline your unique selling proposition (USP)
What distinguishes your company from others? You must know exactly what your company’s USP is and be able to articulate it in your pitch. The number of active enterprises has expanded enormously since the dawn of the internet age, and most product categories are saturated. This implies you’ll need to figure out what makes your product or service different or better than the competition.
It’s rarely enough to simply improve the specifications of a competitor’s present product; they’ll almost certainly do so on their own in the near future. They have the benefit of being well-established, whereas new enterprises are a risky proposition for investors. Investors want to know that your company has identified a legitimate market gap that can be exploited.
- Tell them about your Story
The goal of a pitch is to inspire and excite the audience, not to put them to sleep. However, when so much of a pitch is focused on numerical facts, trends, and projections, this can be tough. That’s why it’s crucial to take a break from the statistics and concentrate on the larger story you’re attempting to communicate.
Consider your journey. What issues prompted you to start your company in the first place? What kind of achievements have you had since then? What setbacks have shaped or altered your business? The most crucial question is: where are you going now?
These items should be mentioned in your pitch and displayed in your investor presentation.
- Be specific about your investment requirements.
When it comes to money, one of the most common mistakes made by founders is to be ambiguous. Without a doubt, asking for a specific sum of money might be scary because there’s always the risk that the investment will fall short. However, it is critical to be confident and specific in your request.
However, it is critical to be confident and specific in your request. Investors want to know not just how their money will be used, but they also want to see that you’ve considered your financial requirements. At the same time, it’s critical to show them where you want to go after they’ve spent their money, as this establishes trust.
Remember to keep your business goals in mind when constructing your investor pitch deck. Everything on the deck demonstrates to potential investors that you are knowledgeable about your company and industry.
Finally, pitching to an investor is a vital part of any startup’s lifecycle. Successful businesses, on the other hand, know how to do it correctly. The idea is to pick your investors carefully, then prepare and pitch your business accordingly.