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Fundraising

The comprehensive guide on fundraising pitch

by Administrator, on Jan 28
In this article, you will learn everything about the presentation to the investor: what data to include, how many slides, where you can create it. We have also collected for you a few examples of unicorns’ pitch decks.
The comprehensive guide on fundraising pitch

The fundraising pitch is a  startup presentation used at one of the steps of fundraising. This is the moment when many questions arise in the minds of entrepreneurs: what information to share with the investor, how detailed it should be, how to make the presentation interesting, etc.

In this article, you will find the answers for these and other questions.

What you should know before the pitch:

‘If you can’t explain it to me in a minute, you don’t understand it well enough.’ Albert Einstein

  • Investors don’t like very short presentations. You can find lots of material about a pitch where experts recommend having a short presentation to attract investors.  Yes, it is true: don’t make your pitch sound too long and boring. However, your presentation should not miss any important data either.
  • Don’t rely on improvisation. Prepare your text before the pitch. Try to present in front of a mirror or ask somebody to listen to you and give feedback. You can also address to a mentor or coach to help you prepare a professional presentation.  Do not forget that the success of your pitch depends on your charisma and soft skills. It would be great if you could improve your public speaking skills.
  • Accompany your speech with visuals.  Help your listeners to catch as much information as possible: your slides should not be distracting, on the opposite they should complement your speech and make it more clear to the listeners. Include more graphs and infographics on your slides and cut the text.
  • Exclude long explanations from your pitch. Use only those data that will help listeners understand your business in general. After the presentation, you can answer the questions from interested people and explain in more details.
  • Don’t lie. Some startups think that pitch is a performance and they need to impress investors (which is not untrue),  and use some unconfirmed information. Such pitch can be a success, but the trick will be detected during the due diligence process and the startup reputation will be damaged. What is worse, that investor can spread information about untrustworthy project among his network: which will further complicate the fundraising process.  
  • Don’t say “we have an unlimited market”, our product is unique and we don’t have competitors”. First of all, these statements often mean that you have not made a proper market analysis. Second, this information will provoke investors to ask more questions to understand the situation better. They would actually prefer to hear that founders know about potential risks (such as limited market, competitors, etc.) rather than speak to people who are completely unaware of the market they plan to enter. You can catch investors with a business model, perfect research of your market and knowledge about how to develop the business.

What information should be included in ppt presentation

To help you create the best presentation, we share some basic slides plan based on Guy Kawasaki’s tips.  

By the way, you can read about the pitching rule 10/20/30 from Guy Kawasaki here.

📊 Slide 1: Title

Provide your company name, your name and title, address, email, and phone number.

📊 Slide 2: Problem/Opportunity

Describe the pain that you're alleviating or the pleasure you’re providing to your target audience.

📊 Slide 3: Value proposition

Explain the value of the pain you alleviate or the value of the pleasure you provide.

📊 Slide 4: Underlying magic

Describe the technology, secret sauce, or magic behind your product. The less text and the more diagrams, visuals, and flowcharts, the better. If you have a prototype or demo, this is the time to transition to it.

📊 Slide 5: Business model

Explain who has your money temporarily in his pocket and how you’re going to get it into yours. To make things simple, describe your target audience and what they will pay you for.

📊 Slide 6: Go-to market plan

Explain how you are going to reach your customer without breaking the bank.

📊 Slide 7: Competitive analysis

Provide a complete view of the competitive landscape. Too much is better than too little.

📊 Slide 8: Management team

Describe the key players of your management team, the board of directors, and board of advisors, as well as your major investors. It’s okay if you have less than a perfect team. If your team was perfect, you wouldn't need to be pitching.

📊 Slide 9: Financial projections and key metric

Provide a three-year forecast containing not only dollars but also key metrics, such as the number of customers and conversion rate. Do a bottom-up forecast, not top down.

📊Slide 10: Current status, accomplishments to date, timeline and use of funds

Explain the current status of your product, what the near future looks like, and how you’ll use the money you’re trying to raise.

In addition to the slides listed above, it would add value if you add the following slides to describe your idea:

📊 Slide: Exit strategy

This slide explains how investors can benefit from investing in your company.

📊 Slide: Partnerships

At the conferences, it makes sense not only to look for investors but also seek potential partners. To simplify the search you can add the slide about potential partnerships and present your needs and benefits that others can get from collaboration with you.

To sum up, you should understand that you cannot tell everything about your startup in one pitch. The goal of the pitch is to attract investors’ attention and make appointments for due diligence.

Unicorns’ presentations:

Below we share the presentations of great startups to give you some inspiration:

AirBnB Pitch Deck

Buffer Pitch Deck

WeWork Pitch Deck

Uber Pitch Deck

 

Square Pitch Deck

>>> You can download free investment pitch deck template here <<<

Online presentation tools

In the end, we share some useful tools and instruments  that help you to create an awesome presentation:

We also want to share the record of InnMind webinar "How to make investors love your startup?".

Here you will find answers to questions:

  • How to make an excellent pitch;
  • How to answer tough / uncomfortable questions; 
  • How to demonstrate professional approach and commitment to success; 
  • How to make investor believe in your project & idea.


Read also:

10 must watch videos for startups

The 7 (Pitching) Habits of Highly Effective Founders (Infographic)

6 tips of effective networking at conferences

Note: Full or partial copy of the publication is allowed only with the direct active link to InnMind platform.

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