So, you have a great business idea or a minimum viable product, that’s fantastic. Unfortunately, in most cases, a great idea or a great product is not enough to create a truly successful business. Many businesses cannot succeed until they secure funding, which could come from venture capitalists, private investors, family offices, or a variety of other sources.
If your startup is still in the early stages, then you may need to create a stunning pitch deck presentation to wow your potential investors. Only by impressing your potential investors will you be able to secure the funding that you desperately need. Here are some of the best practices early-stage startups can adapt in creating their pitch deck presentations:
The beginning of your pitch deck should clearly discuss the problem that your company was designed to solve and the particular solution that you have created. This part of the pitch deck is designed to pique the interest of investors by making them realize why your product or service is currently needed in the market. Once the investors understand the value of your company’s solution, they will be much more likely to want to invest in your business.
One of the most common, most logical, and most effective pitch deck formats for early-stage startups to use is this one:
This format flows nicely and covers everything that a good pitch deck should cover. You can use this exact format if you would like, or choose your own. Be sure that your pitch deck follows a highly logical format that tells investors everything they need to know, without providing them with unnecessary information that will distract or bore them.
If there is one thing that can make investors lose interest in a pitch deck presentation, it is inflated earnings projections. The earnings projections that you make need to be highly accurate and backed by substantial research. Whatever projections you present to your investors, you need to be able to defend with adequate proof. Potential investors will be ready to grill you about the numbers you provide in this section.
Showing the pre-money valuation to your investors is crucial, as it lets them know exactly what the company is worth before the money kicks in. This is something that most investors want to know before making an investment and having it ready will ease the ensuing negotiation process. You can calculate your startup’s pre-money valuation using Startup Falcon's automated valuation calculator.
Like most people, investors can become bored, or lose interest if your presentation runs too long. Aim to keep your pitch deck to about 15 to 20 slides. If it runs any longer than this, you may be running a significant risk of creating boredom among potential investors. Also avoid making your slides too wordy, as this too can cause the investors to lose interest. Keep things short and sweet, not convoluted and complex.
Investors love to grill pitch deck presenters with a wide variety of questions, and for good reason — they don’t want to put money into an idea that is full of holes. You need to make sure that you adequately anticipate the questions that you will be asked, and be sure to have great answers ready for them.
These six points are vital in creating successful pitch deck presentations. If you can follow these tips, you’ll have a very good chance of making an outstanding presentation for your early-stage startup.