Introduction
The purpose of a pitch deck is to highlight a specific problem that a group of people are facing, propose a feasible and effective solution, and then quantify the economic benefits that can be realized upon successful implementation of the solution.
The following summary outlines a comprehensive guide to creating a presentation that effectively achieves the aforementioned points. While the specific format will vary, the information which is detailed below should be made clear within every pitch deck.
Slide 1: Clearly Define the Problem
Begin your presentation by clearly defining the problem you are solving. Present a concise and compelling description of the pain points and challenges faced by your target audience. Emphasize the significance and scope of the problem to capture investors’ attention.
Slide 2: The Solution
Explain the approach your company is taking to solve the identified problem. Highlight the elements which are required to solve the problem and why your company can offer these. The investor should leave this slide with a clear idea of how the problem will be solved.
Slide 3: Solution Details
This slide should elaborate on slide 2. Provide a detailed overview of your product or service, focusing on its functionality, usability, and unique features. Clearly communicate the benefits that your solution offers to customers. While reading this slide an investor should be able to make a 1:1 connection with respect to how the problem is being solved. Moreover, if you are not a first mover detail why your solution is better than existing solutions as well as any potential moat. Displaying a competitive landscape matrix may be of use. Finally, use visuals, demos, or prototypes to showcase your products and its value proposition.
Demoing a product is always the best pitch, even if the product is not complete.
Slide 4: Product Roadmap, if applicable
Present a visual representation of your product roadmap to illustrate the evolution and future development plans for your solution. Outline the key milestones and timelines, indicating how your product will grow and adapt to market demands.
Slide 5: Market Size
Provide a clear illustration of the market size. Use reliable data and research to support your claims. Use a bottom-up approach when determining the TAM, SAM and SOM. A bottom-up approach will showcase that you understand your market and target customer and that you are pragmatic in your approach to valuation and market sizing.
Slide 6: Pricing Strategy
Outline your pricing strategy and clearly explain how it aligns with the value delivered by your product. Justify your pricing model by highlighting competitive advantages, market dynamics, and why your customers will be willing to pay said price.
Slide 7: User Acquisition Strategy
Describe your user acquisition strategy, including the channels, tactics, and campaigns you plan to employ. Present a clear plan to attract and retain your target audience. Showcase your understanding of customer acquisition costs and the scalability of your strategy.
Slide 8: Unit Economics
Clearly present the unit economics. This includes detailing the projected revenue per user, gross margin, churn rate, customer lifetime value (CLTV), and customer acquisition cost (CAC). Touch upon the ratio CLTV / CAC. If the ratio is high or low, ensure it is clear why this is the case. If you do not have a detailed understanding of unit economics click here to review our introduction to unit economics.
Slide 9: Growth Projections
Present realistic and data-driven growth projections, including a timeline. Growth should be tied to the amount of funds you plan to allocate to customer acquisition costs. Includes projected assumptions on network effects, cross-selling and up-selling. Again, ensure all of your assumptions are logical and supported by data.
Slide 10: Founding Team
Introduce the key members of the team. Highlight their relevant expertise, achievements, and roles within the company. Ensure it is clear how each team member will increase the likelihood of success. Do not list a bunch of accolades which are not tied to the current business unless they are a sign of exceptional performance.
Slide 11: Proposed Terms and Use of Funds (not required if the deck is the first touchpoint)
Clearly state the proposed terms of your fundraising round, specifically the amount of capital you are looking to raise. Detail the use of funds. This should be done by including a budget detailing how the funds will be allocated. For example you may have an ask of $1MM and then a pie chart showing $500k will be allocated to CaC, $300k to headcount, and $200k to product development. Thereafter provide an estimate of the runway the raise will provide you based on current projections and articulate where KPIs will be when it comes time to raise the next round of funding. The KPIs should be thought through in detail as investors will use this to project what valuation the business could command during the next round of funding.
Slide 12: Contact Information
If someone is interested in potentially giving you money please ensure there is a way to contact you….