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When starting a business, or even many years in, one of the more painstaking tasks to go through when looking for funding is to build your Investor Ready Pitch Deck.
\n\n\n\nA well-crafted pitch deck is your ‘business card’ to investors. It should showcase your company’s uniqueness and convey the story of why investors should invest in you, and not in the hundreds of other opportunities they get to see.
\n\n\n\nYour pitch deck should be easily readable, while answering 99% of the reader’s questions in a 5 to 10 minute read. It should also support you and help you shine during your in-person presentations to investors.
\n\n\n\nFollowing this guide, you will be able to produce a professionally structured, beautifully visualized pitch deck that excites investors about your business.
\n\n\n\nA pitch deck is a presentation that provides an overview of your company business plan. It is a powerful tool that helps you effectively communicate your vision, value proposition and business opportunity to potential investors, clients, partners, or employees.
\n\n\n\nAs an entrepreneur, one of the essential skills you need to master is the art of pitching your business. A well-structured and visually appealing pitch deck can significantly increase your chances of securing the support, funding, or partnership you need to take your business to the next level.
\n\n\n\nYour pitch deck is your entry point to start conversations with investors. Typically, your pitch deck is the first document that you share with potential investors when you want them to consider entrusting you with their capital. All businesses need a pitch deck when fundraising, for several reasons:
\n\n\n\nA pitch deck can be as detailed or concise as required, depending on the business’s needs at the time. Often, you may have several versions of your pitch, depending on the audience, the length of your presentation, or the stage of your conversation. We will get to several versions of your pitch a bit later.
\n\n\n\nA strong pitch should typically include the following 13 sections:
\n\n\n\nYour executive summary is vital to your pitch, providing the audience with a snapshot of what you plan to accomplish. Depending on the length of your pitch, the executive summary can range from just one paragraph to a full page.
\n\n\n\nIf you decide to go with a short, one paragraph summary, describe your company offering, the target customer, the problem you are solving and your competitive advantage. Here is an example.
\n\n\n\nModeliks is a business planning SaaS software that helps startups and SMEs to plan, fundraise and manage their business. A fully guided financial planning solution, investor ready pitch and business plan templates, and one click management reporting tools allow ANYONE to create a professional business plan and track the performance of their business, 10 times faster and 100 times cheaper.
\n\n\n\nIf you decide to go with a more comprehensive summary, then:
\n\n\n\nExplain the key problems that your target customers are facing and that your business solves. The problems demonstrate the necessity of your product or service in the market.
\n\n\n\nThe problems should be concise (one to three problems), easy for the audience to understand and big enough for the audience to care. If you can: (1) quantify the problems with numbers, (2) write them in a way that the audience can connect with the problems on a personal level and (3) show that someone important in your field has also identified these important problems.
\n\n\n\nThe ideal response from your audience should be: “Yes, these are real and big problems, and if solved, the customer will switch to using your product or service”. Here is the Modeliks example.
\n\n\n\n\n\n\n\nDescribe your solution to the problem in simple words. Your solution should be closely linked to the problems you had identified. Keep it simple for the audience to understand it and think to themselves: “Yes, this solution really solves those big problems.” If you are not getting this reaction from readers, rewrite it.
\n\n\n\nHere is the Modeliks Example.
\n\n\n\n\n\n\n\nThis section should provide a detailed description of the products or services the business offers. It should include features, benefits, pricing and distribution channels. Don’t be shy with explaining the uniqueness and value proposition in some detail, and qualify the reasons for your customers loving your product or service. In some cases, you already explained your product in the solution slide. If so, you can skip this slide.
\n\n\n\nBuild a visual representation of the market, and how much of your market you plan to capture.
\n\n\n\nDefine your (1) target customers and their needs and wants (2) how many customers are there in your target geography and market segment, (3) how much money they spend on similar products annually (market size) and (4) how much will the market grow in the next 5 years. The more stats and data you have from relevant and reputable sources like statistics bureaus or academic research, the better. Quote your research and give credit where credit is due!
\n\n\n\nTo start, consider your product or service. What need does it fill? Who would be most likely to use it? Once you have a good idea of your target customer, you can research their demographics (age, location, gender, etc.), lifestyle choices, and buying habits.
\n\n\n\nThere are many ways to gather this information. You can conduct surveys or interviews with people in your target market, look at data from similar businesses, or use online resources.
\n\n\n\nInvestors like to see that lots of people experience the problems that you are solving. This gives them an idea of the revenue potential for your business and the size of the opportunity.
\n\n\n\nHere is the Modeliks example.
\n\n\n\n\n\n\n\nThis section provides an analysis of the competitive landscape in your sector. You should identify the main competitors, their strengths and weaknesses, and their market share. It should also provide insights into how the business will compete and differentiate itself.
\n\n\n\nYou should convince your audience of two things:
\n\n\n\n1) That you know your competitors as well as you know your product and customer, and
\n\n\n\n2) that your solution is different and better than theirs.
\n\n\n\nThis is best done by identifying the critical success factors for your business, or the key criteria that customers consider when making a purchasing decision, and then comparing your business to your main competitors on those factors.
\n\n\n\nAgain, visualize your position against the competition. You can achieve this through:
\n\n\n\nHere is the Modeliks example.
\n\n\n\n\n\n\n\nKnowing your competition is as important as knowing your product and your customer. It’s simply impossible to convince investors that you will succeed if you don’t know your competition. Also, do not mention ‘we don’t have competition because we are unique’ – in such case, you are missing the indirect competition that in one way or the other already addresses your customer’s needs.
\n\n\n\nUse this slide to show that now is the right time to be in this business. Your idea can be great, but if the time is not right, there is a higher risk of failure. For example, a subscription business idea could have been great even 20 years ago, but there was no cloud infrastructure to support such business.
\n\n\n\nIn this slide, you want to show specific market trends that confirm the need for your product in the market. In addition to an existing need, if the trends show expected rapid market growth, then you have hit the jackpot. Market trends could include changes in consumer behavior, emerging technologies, regulatory shifts or market growth projections.
\n\n\n\nBelow is the Modeliks example. It shows that 5 years ago, very few companies were ready to use SaaS business planning software. Just 5 years later, the majority of companies are looking to switch from standard spreadsheet and word tools to SaaS business planning software. This is a shift in user behavior that confirms both the customer need and rapid growth in the market for SaaS business planning software.
\n\n\n\n\n\n\n\nUse your market and competitive analysis to craft a marketing strategy that will help you reach your target market. How will you communicate with your target market? What channels and media will you use? What message will you communicate?
\n\n\n\nExplain to your investors how are you going to advertise and sell your product to your target customer.
\n\n\n\nWe recommend using one of three frameworks for describing your marketing strategy:
\n\n\n\nWhichever framework you decide to use, make sure that you include the activities you will perform to attract customers and the key performance indicators (KPIs) that you measure in order to evaluate the success of your marketing strategy.
\n\n\n\nHere is the Modeliks example.
\n\n\n\n\n\n\n\nThe best way to convince investors to believe in you is to show them a record of success. Use this slide to prove, beyond doubt, that your customers confirm that you have a great product that they love using.
\n\n\n\nFor existing companies, this is quite easy. Include quantitative information about the recent performance of your company showing fast growth in your revenues, number of customers, customer satisfaction scores, customer reviews, profits, repeat usage by customers, engaged and growing followers on social media, etc.
\n\n\n\nIf you are a startup that has not launched yet, creating the traction slide is much more difficult, but just as important. You don’t have past revenue or customer data, so what you can use for the traction slide are contracts or letters of interest from potential customers, quotes from potential customers, survey results, endorsements from experts in your field, results of beta testing, results of technical tests vs competition, etc. Getting any of this information is not always easy, but it is worth the effort.
\n\n\n\nThe roadmap shows the most important milestones your company has achieved in the past and the planned major milestones going forward. Use the roadmap to show how efficient your company has been in delivering major milestones and the direction you are going towards in the future.
\n\n\n\nThe team slide is one of the 3 most important slides in your pitch deck, especially for startup businesses. Investors invest in the team first and then in the idea. Even if investors believe that you have a billion-dollar idea, you still must convince them that you and your team have the right skills and experience to make the business successful. Here is your chance to showcase your relevant experience and success. For each core team member, you should mention the relevant companies and positions they have held and the number of years of relevant experience. Make sure your core team covers the key areas of business: management, technical skills and marketing and sales capabilities and have a unique edge to compete in the space.
\n\n\n\nDescribe your ask for funding on a single slide. It’s crucial to clearly communicate the following messages:
\n\n\n\nHere is an example.
\n\n\n\n\n\n\n\nYour financial plan is a key component of your story. Investors want to see that you are ambitious and that you plan to make them a lot of money with their investment. Startups are risky investments, so investors expect high returns. The earlier the stage of the company, the higher expected returns. At the same time, if your financial plans are clearly unrealistic, you will turn off some investors. So, find a balance between ambitious and possible financial numbers.
\n\n\n\nInclude Revenue, Revenue growth, EBITDA or Net Income, EBITDA margin or Net Income margin and Free Cash Flow as key financial numbers. You can also include some operational numbers like the number of clients. More detailed financial information like Profit and Loss Statement, Balance Sheet and Cash Flow Statement would go in the appendix.
\n\n\n\nIf your business has been operational for some time, include the same data for the previous 1 to 3 years.
\n\n\n\nUse charts, where you can, to show the key financial information. Tables are boring, if there are too many of them.
\n\n\n\nHere is an example.
\n\n\n\n\n\n\n\nThis section includes additional information that supports the pitch and your story, such as market research, legal documents, and resumes of key personnel, detailed financial information.
\n\n\n\nHere are some Do’s and Don’ts to keep in mind as you develop your kick-ass pitch deck:
\n\n\n\nIn your journey to raising funds, you will likely require several versions of your pitch deck, depending on the stage of the conversation with, or what level of detail you want to share with a specific investor.
\n\n\n\nThis sounds like a complicated thing to do, but do not worry – you will be able to re-purpose the work you have done with the sections and slides above into neat packages that meet any audience’s expectations.
\n\n\n\nWe suggest the following versions of your deck:
\n\n\n\nThe above list is by no means exhaustive, you can twist and tweak this as you require. Make sure to build your pitch upfront with all required sections, to make the task of creating new versions a walk in the park!
\n\n\n\nCreating a great pitch deck is a crucial step for any entrepreneur seeking funding for their business. It requires a careful balance between creativity, clarity, and substance. A well-crafted pitch deck can be a powerful tool to present your business, showcase your competitive edge, and inspire potential investors.
\n\n\n\nHowever, it’s important to remember that a pitch deck is only one part of the funding process. Investors are also interested in the entrepreneur behind the business, their track record, and their vision for the future. Therefore, entrepreneurs should not neglect other critical aspects such as building relationships with investors, developing a solid business plan, and cultivating a strong team. In summary, while a pitch deck is important, it’s only one piece of the puzzle.
\n\n\n\nTo start your journey of building your impactful pitch deck, sign up for Modeliks’ Free Trial today!
\n","slug":"how-to-create-an-investor-ready-pitch-deck-the-ultimate-guide","date":"2023-06-28T08:28:00","categories":{"nodes":[{"id":"dGVybToxMg==","name":"Pitch Decks"}]},"mainCategory":{"mainCategory":["pitch-decks"],"videoHeader":null},"tags":{"nodes":[]},"featuredImage":{"node":{"id":"cG9zdDoxNDcz","sourceUrl":"/images/cms/Modeliks-sliki-1920px-x-1280px-05.jpg","altText":"investor-ready pitch deck"}},"seo":{"metaDesc":"Investor Ready Pitch Deck - When starting a business, or even many years in, one of the more painstaking tasks to go through when looking ..."},"modified":"2024-03-20T12:22:25","related":[{"id":"cG9zdDoyNjc5","title":"Pitch Deck Roadmap Slide: Strategic Vision & Milestones","content":"\nWhen pitching your startup to investors, clarity and vision are key. A well-constructed roadmap slide can serve as a compelling visual that outlines your strategic plan, highlighting how your startup will evolve. It gives investors a clear view of your milestones, helping them understand where your company is headed, and the steps you will take to get there.
\n\n\n\nA roadmap slide presents a clear, visual representation of your startup’s journey from its current state to future goals. Typically positioned towards the end of a pitch deck, this slide encapsulates your product’s evolution, market expansion plans, and key financial milestones. It’s designed to give investors confidence in your ability to execute your vision and deliver returns on their investment.
\n\n\n\nIdentify and highlight the key milestones that will define your startup’s success. These could include product launches, market expansions, revenue targets, or significant partnerships. Each milestone should be tied to measurable outcomes that align with your overall business strategy.
\n\n\n\nOrganize your roadmap into distinct phases, typically spanning 3-5 years. This timeline should delineate what has been accomplished so far, what’s currently in progress, and what’s planned for the future. Grouping milestones into phases such as “Now,” “Next Year,” and “Beyond” can help investors easily digest your plans.
\n\n\n\nWhile investors understand the speculative nature of early-stage projections, it’s important to provide realistic financial forecasts. Show how each milestone contributes to revenue growth, customer acquisition, and profitability. Including historical financial data, if available, can add credibility to your projections.
\n\n\n\nBeyond financials, your roadmap should also outline key product development and growth objectives. This could include introducing new features, entering new markets, or scaling your operations. Ensure these objectives are linked to the broader strategic goals of your startup.
\n\n\n\nInvestors seek a clear path to return on investment (ROI). Your roadmap should provide a narrative connecting the dots between your milestones and how they contribute to the business’s eventual success, whether through profitability, acquisition, or exit strategy.
\n\n\n\nConsider the level of detail your investors need. Some may prefer high-level overviews, while others might want more granular timelines. Balancing these preferences is key to making your slide both informative and engaging.
\n\n\n\nRather than listing features or technical developments, focus on the outcomes these features will drive. For example, instead of simply stating “New CRM integration,” highlight the benefit: “Enhanced customer tracking leading to 20% improved retention.
\n\n\n\nGrouping similar milestones by color or theme can help make your slide more visually coherent. This not only aids in understanding but also emphasizes the strategic nature of your plans.
\n\n\n\nInvestors want to know where you stand today. Marking your current status on the roadmap helps put your plans into context, showing how far you’ve come and what remains on the horizon.
\n\n\n\nBe realistic with your milestones and timelines. Overpromising can damage your credibility if targets are not met.
\n\n\n\nYour roadmap should tell a story. Don’t just list milestones; weave them into a narrative demonstrating strategic foresight and operational readiness.
\n\n\n\nWhile product milestones are important, don’t forget to tie them back to financial outcomes. Investors are keenly interested in how each milestone will impact revenue and profitability.
\n\n\n\nA well-crafted roadmap slide is essential for convincing investors that your startup has a clear path to success. You can effectively demonstrate your startup’s potential by showcasing strategic milestones, tying them to financial outcomes, and telling a cohesive story. Remember, your roadmap is not just about where you’re going, but how you plan to get there—and why investors should join you on that journey.
\n\n\n\nEnsure your pitch deck is investor-ready with Modeliks‘ comprehensive planning tools. From crafting detailed financial forecasts to building compelling slides, Modeliks simplifies the process, allowing you to focus on what matters most—growing your startup. Start your free trial today!
\n","slug":"roadmap-slide","date":"2024-08-19T13:18:39","categories":{"nodes":[{"id":"dGVybToxMg==","name":"Pitch Decks"}]},"mainCategory":{"mainCategory":["pitch-decks"],"videoHeader":null},"tags":{"nodes":[{"name":"pitch deck"},{"name":"pitch deck slide"}]},"featuredImage":{"node":{"id":"cG9zdDoyNjgw","sourceUrl":"/images/cms/Modeliks.jpg","altText":"Modeliks Guide: Pitch deck roadmap slide showcasing startup milestones, strategic vision, and investor ROI pathway for clear communication of growth plans."}},"seo":{"metaDesc":"Learn how to create a pitch deck roadmap slide that outlines your startup's milestones, strategy, & vision."},"modified":"2024-08-19T13:18:40","related":null},{"id":"cG9zdDoyNjIy","title":"Pitch Deck Financials Slide: A Snapshot of Your Startup’s Finances","content":"\nThe financials slide in a pitch deck is crucial for any startup seeking investment. This slide provides a snapshot of your business’s financial health, outlines growth potential, and demonstrates your ability to manage finances effectively. Investors rely on this slide to understand your business’s financial trajectory and evaluate whether it aligns with their investment criteria. This guide breaks down the key elements of an effective financial slide and provides tips for crafting a compelling economic narrative.
\n\n\n\nThe pitch deck financials slide is a pivotal part of your presentation. It offers potential investors a concise view of your business’s financial health and growth prospects. This slide should convey critical financial metrics that reflect your startup’s past performance, current status, and future potential. A well-crafted financial slide builds trust with investors, showcasing your ability to generate revenue and manage expenses efficiently.
\n\n\n\nYour financial projection slide in the pitch deck should include detailed revenue forecasts and profit margins for the next 3 to 5 years. Highlight key revenue streams and how they contribute to overall growth. Investors want to understand how you plan to scale your business and achieve profitability. Be sure to include historical data if available, as it provides context for your projections.
\n\n\n\nOutline your business’s cost structure, including fixed and variable expenses. Investors need to see how you plan to manage costs while scaling operations. Highlight major expenses such as manufacturing costs, salaries, marketing, and R&D. Providing a clear breakdown of expenditures helps investors assess your startup’s financial stability and identify potential areas for cost optimization.
\n\n\n\nInclude essential financial metrics such as gross margin, net margin, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). These metrics give investors insight into your startup’s profitability and operational efficiency. Additionally, consider showcasing metrics like customer acquisition cost (CAC) and customer lifetime value (LTV) to demonstrate the sustainability of your business model.
\n\n\n\nEnsure your financials pitch deck slide aligns with your business strategy and goals. Clearly articulate how your financial projections support your growth objectives and market positioning. Investors want to see that your financial plan is realistic and achievable, backed by a solid understanding of the market and competitive landscape.
\n\n\n\nBe transparent about the assumptions underlying your financial projections. Provide a rationale for key assumptions such as market growth rates, pricing strategies, and customer acquisition channels. By explaining your assumptions, you build credibility and help investors understand the logic behind your financial forecasts.
\n\n\n\nIf your startup has achieved significant milestones or secured notable partnerships, include them in your financials slide. Highlighting achievements reinforces your startup’s potential and demonstrates your ability to execute your business plan. Milestones also provide context for your financial projections, showing investors you have a track record of delivering results.
\n\n\n\nAvoid presenting unrealistic financial projections that may raise red flags for investors. While it’s essential to show ambition, ensure your projections are grounded in reality and supported by credible data. Overly optimistic forecasts can undermine your credibility and lead to skepticism among potential investors.
\n\n\n\nKeep your financials slide clear and concise. Avoid overwhelming investors with excessive detail or complex financial models. Focus on the most critical metrics and use visual aids such as graphs and charts to enhance understanding. A well-organized slide makes it easier for investors to grasp your financial story at a glance.
\n\n\n\nEnsure consistency between your financials slide and other parts of your pitch deck. Any discrepancies between financial projections and other slides, such as the market opportunity or competitive landscape, can create confusion and erode trust. A cohesive and integrated pitch deck strengthens your overall narrative.
\n\n\n\nCrafting a compelling pitch deck financials slide requires a balance of clarity, detail, and strategic insight. You can build a strong investment case by focusing on key financial metrics, aligning your projections with business goals, and providing a transparent rationale for assumptions. Remember that the financials slide is not just about numbers—it’s about telling a convincing story of growth and potential.
\n\n\n\nAre you ready to take your startup to the next level? Modeliks can help you create a winning pitch deck that captures investor interest. Start your free trial today and unlock the tools and resources you need to succeed in the competitive world of startups.
\n","slug":"pitch-deck-financials-slide","date":"2024-08-12T12:13:39","categories":{"nodes":[{"id":"dGVybToxMg==","name":"Pitch Decks"}]},"mainCategory":{"mainCategory":["pitch-decks"],"videoHeader":null},"tags":{"nodes":[{"name":"pitch deck"},{"name":"pitch deck slide"}]},"featuredImage":{"node":{"id":"cG9zdDoyNjIz","sourceUrl":"/images/cms/Modeliks-4.jpg","altText":"Modeliks Guide on crafting a pitch deck financials slide showcasing revenue forecasts, cost structure, and key metrics."}},"seo":{"metaDesc":"Learn how to create a pitch deck financials slide that wins investor confidence with essential metrics and clear financial projections."},"modified":"2024-08-12T12:13:40","related":null},{"id":"cG9zdDoyNjAw","title":"The Difference Between Angel Investors and Venture Capitalists","content":"\nUnderstanding the difference between angel investors and venture capitalists is crucial for entrepreneurs seeking funding. Both play significant roles in the startup ecosystem, but their approaches, expectations, and investment capacities differ. This article breaks down the key distinctions to help entrepreneurs make informed decisions when seeking investment.
\n\n\n\nAngel investors, also known as business angels, are affluent individuals who provide capital for startups in exchange for ownership equity or convertible debt. They typically invest their own money and often support early-stage businesses that are in the seed or initial development phases.
\n\n\n\nVenture capitalists (VCs) are professional investors who manage pooled funds from multiple sources, including individuals, corporations, and institutional investors. They usually invest in companies with high growth potential and are more likely to fund startups that have shown some market traction and have a viable product or service.
\n\n\n\nAngel investors usually invest smaller amounts, ranging from $25,000 to $100,000, although some may invest up to $750,000 when part of an angel group. Venture capitalists, on the other hand, typically invest much larger sums, starting from $1 million and often going beyond $10 million, depending on the stage and potential of the business.
\n\n\n\nAngel investors are more likely to invest in very early-stage companies, sometimes even at the idea stage. They provide the initial seed funding needed to get the business. Venture capitalists generally come in at a later stage, such as during Series A funding, when the company has demonstrated some success and is looking to scale.
\n\n\n\nOne of the primary differences between angel investors and venture capitalists is the source of their funds. Angel investors use their own money, which gives them the flexibility to invest according to their personal interests and risk tolerance. In contrast, venture capitalists manage pooled funds from various investors and have a fiduciary duty to generate returns for these investors, which often results in a more structured and rigorous investment process.
\n\n\n\nAngel investors often take a more passive role after their initial investment, although some may offer mentorship and advice based on their personal experience. Their involvement varies widely depending on the individual investor’s preferences. Venture capitalists, however, tend to be more involved in the operational aspects of the business. They often seek board seats and play an active role in strategic decision-making to help the company grow and achieve profitability.
\n\n\n\nVenture capitalists usually bring a wealth of industry-specific expertise and resources, which can be invaluable for scaling a business. They have teams of analysts and advisors to assist portfolio companies. Angel investors may also bring valuable insights and connections but typically do not have the extensive resources that VC firms possess.
\n\n\n\nAngel investors generally have a higher risk tolerance as they invest their own money and are often more willing to take chances on unproven ideas. This high risk is balanced by the potential for high returns if the startup succeeds. Venture capitalists are more risk-averse due to their responsibility to their investors and the larger sums of money involved. They prefer investing in companies that have already shown some level of success and market validation.
\n\n\n\nBoth angel investors and venture capitalists seek high returns on their investments. However, VCs typically expect higher returns due to the larger amounts invested and the professional management of their funds. They often look for exits through IPOs or significant acquisitions that can offer substantial returns.
\n\n\n\nThe decision between seeking an angel investor or a venture capitalist depends on the stage of the business, the amount of funding needed, and the level of involvement desired. Early-stage startups with innovative ideas may benefit from the flexibility and initial financing of angel investors. Businesses that are ready to scale and need substantial funding and strategic guidance might find venture capitalists to be the better choice.
\n\n\n\nUnderstanding the distinctions between angel investors and venture capitalists is essential for entrepreneurs seeking funding. Both types of investors play crucial roles in the startup ecosystem but offer different benefits and come with different expectations. Carefully consider your business’s stage, funding needs, and desired level of investor involvement to choose the right type of investment for your venture.
\n\n\n\nAt Modeliks, we empower startups with the tools and knowledge they need to succeed. Whether seeking to attract angel investors or venture capitalists, our platform offers comprehensive planning resources to help you create compelling business plans and pitch decks. Sign in for a free trial and start your journey towards successful funding today.
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