What differentiates an exceptional pitch deck from one that’s just so-so? A pitch deck aims to convey a startup’s industry positioning and execution strategy to investors in a way that’s easy for them to understand. In less than fifteen slides, investors should be able to gain a reasonable understanding of the market potential of the startup. Having reviewed thousands of pitch decks as an attorney and venture competition judge, here are my tips on what they should include:
Introduction
This may seem like common sense, but you’d be surprised at the number of entrepreneurs who omit basic information on who they are or what they’re working on. In the introduction, describe the credentials of the founding team, the product of service being offered, and the stage of development of any technology or intellectual property.
Market
In this section of your pitch deck, you’ll need to demonstrate a deep understanding of the market in which your product or service is being offered. Correct industry positioning is critical to a startup’s ability to design and carry out an effective execution strategy (as explained in the next section). Ask yourself these questions when drafting your market analysis:
- At the macro level, discuss the size, growth, and segmentation of your target market. What’s the market need that your product or service seeks to address? What are important trends in supply and demand that are taking place? What are the market incentives and barriers that could improve or diminish your startup’s chances of success?
- At the micro level, you should be keenly attuned to the psychology of your target customers. Who are they, why were they chosen, and what makes them tick? How will your product or service address an emotional need that they might have?
Execution Strategy
If investors could only look at one thing, it would be your execution strategy. Ideas are very rarely entirely original. Unless a startup will go on to becoming the next Apple, chances are, someone out there in the world is working on the exact same thing as you. What sets entrepreneurs apart is their ability to execute on their ideas. Here are a number of points to consider:
- What’s your plan for taking your product or service to market? If there are barriers to market entry, how will you overcome them?
- What’s your sales and marketing strategy? Can you sell your product or service more effectively than your competition? Do you have the right connections in your target market? Do you or any members of your team have a strong track record in sales or marketing?
- Are the logistics of your startup planned out? If you’re offering a product, do you have manufacturers lined up? If you’re offering a service, do you have the right licenses in place?
Competition
The key to competition is balance. If you have too little of it, then your product or service may not have much demand. If you have too much of it, then it may be difficult to generate any revenue. A good pitch deck positions the startup in a sweet spot (from a competition standpoint). What sets you apart, and why would customers prefer your product or service over others?
- Who are your industry competitors? For example, Amazon’s initial industry competitors were brick-and-mortar bookstores.
- Who are your “competitors in innovation”? Going back to our previous example, Amazon’s initial “competitors in innovation” were other online bookstores.
Financials
Begin this section by listing the funds that have been raised and spent to date, the amount of additional funding that you’re seeking to raise, and your plan for using these additional funds to scale the business. You’ll also need to build a financial model to predict sales, even if you haven’t generated any revenue yet. If the numbers look reasonable, this shows investors that you understand the profit potential of your startup well.
In a Nutshell
If you’ve been suffering from writer’s block, this article has hopefully enlightened you on ways to proceed. While the sections above are information-heavy, keep in mind that pitch decks are intended to tell a story in a clear and concise fashion. Investors tend to skim through pitch decks quickly, so to save on words, you may consider organizing some ideas through pictures and charts. Ultimately, while this article gives pointers, only you know your story and how it’s best shared with the world.
