What is a pitch deck and how do you build one?

Most of the investors come from outside sources. Mostly this means they have little idea of your brand to work with. Therefore, you must present your ideas well enough to be worth your attention and time. If you're trying to attract potential investors to become financiers of your business, an impressive presentation is a way to go.

What is a pitch deck?

A pitch deck is a short presentation that gives your target audience an overview of your business, from your business plan to your competitors. This is so you can get funding from investors or serve as a marketing strategy for your product or service. But to attract investment to your business, you must first understand the fundamentals of a good pitch deck.

If the goal of Marie Kondo is to teach us to keep only the things that generate joy, our goal, in this case, is to arouse a potential investor’s interest. Your launch pad should be nothing short of captivating and remarkable. Chances are, you're not the only startup pitching your ideas to these investors. Make sure that yours seems extraordinary and unforgettable to them.

What's in a Pitch Deck?

Like any other presentation, a presentation deck is also made up of slides that tell a story about your business, a short story that is easy to follow for investors who may have little to no working knowledge of your startup. But what information should essentially be part of your launch pad?

1. Introduction.

Your introductory slide will be the first one your potential investors will see. Start by introducing your company and why you are here. Most entrepreneurs use this slide to present their unique value proposition. Make your introduction punchy, but keep it short and sweet enough to grab your audience's attention.

2. Problem.

They say that "necessity is the mother of all inventions". In fact, his product was born out of the need to solve a problem. If you're not here to solve anything, why are you here?

Analyze what gaps your product is trying to fill in the marketplace. You can share relatable stories with your investors to define the problem and help them better understand where your business is rooted. But please identify only a maximum of three issues to include on your issue slide. To avoid being too long, take inspiration from this enhanced Airbnb pitch deck template, which followed the rule of thirds.

3. Team.

Never forget to give credit where credit is due. Introduce the core team behind the project or business and briefly explain their roles. This slide highlights how your team members are uniquely qualified to help you transform a startup into a successful company. You need to show your potential investors that you and your team have the ability and drive to market and sell your product/service.

4. Target market and opportunity.

Your target market is a crucial part of your pitching platform, as this could influence your potential investors' decisions about your funding application. This is large because your return on investment (ROI) will determine how big or small your operating market is.

Present who and how many is your target market. This is where your research data comes in. However, be careful not to exaggerate the scope of your business. You want to assure your investors that you have a specific and achievable target market. Your pitch deck should be as realistic as possible.

5. Business Plan.

Of course, never miss this one in your presentation. A mere description of your business sometimes doesn't seem like enough for some investors. You must have a specific business and financial plan to indicate the probability of success of your startup. Show the unique characteristics and mechanisms of your startup and how you project this plan to generate sales. You can also include your projected time frame for your income to get here.

6. Traction.

Work to gain early traction for your product or service. This will show potential investors that your startup really has the potential to expand. Emphasize that funding from them will allow you to tap into that potential.

This slide can include your company's monthly growth chart, annual revenue return date, profit margin, number of users having your products/services, and other milestones. Such data will help reduce your potential investor’s fear of risk by validating the ability of your idea to solve the problem.

7. Competition.

Every once in a while, a new business venture comes along that expresses how the industry is expanding quite quickly. With that, you need to clearly show investors the qualities that make your product or service special and unique among your competitors.

All companies, even start-ups, have at least one competitor in the market. This is the part of your pitch deck where you can discuss what the competitor is doing and what you think they are doing wrong. But take note: never speak ill of your competitors. Giving up other businesses would be a bad image for you.

8. Budget.

This will be the last and possibly one of the most critical sections of your presentation. This is where you let your investors know how their money will be spent. Explain why and how funding and sponsorship would help your business grow. Back this up with relevant data and expert insights.

And of course, don't forget to tell them the amount of money you would need to finance your project. Go with ranges when presenting the amount to make it appear even more attractive to as many potential investors as possible. For example, you need $3 million. Put a range between $1 million and $3 million instead. Always be more strategic than usual when creating this slide.

If you don't know where to start, I suggest you ask yourself a few simple questions: What are your goals? What does your company mean to you? What makes you different from others? Would it stand out in the crowded market? How is that?

If you're having trouble finishing, designing, or even starting to create a pitch deck, Venngage is always here to help. It provides a wide range of pitch deck templates that you can choose from. You can develop each template according to your preferred color palette and choose the icons that best reflect your company's brand.