How To Create Your Pitch Deck (Step By Step)
The first thing an investor wants to see is your pitch deck, your pitch deck is like your startup’s business card you give to investors, so it’s very important you learn how to create one containing as much as possible details but short and precise enough so it won’t become too much and hard to go through.
You can create more than one version of your pitch deck, there are basically two types; the one that is short and majorly meant to be used when presenting your startup to investors and the other one with more details which you can mail to investors.
We’ll be going through the steps of creating your pitch deck.
You might want to start with the table of contents, an executive summary but the first important slide should be your problem statement. This is the problem, the pain-point your startup is trying to solve.
Even if your solution is addressing more than just a single problem, you have to make it look like a single problem. It makes it easy for investors to understand which market gap you’re trying to fill.
There’s high traffic in the Lagos city, causing air pollution due to dangerous gas emissions from vehiclesA sample problem statement
It’s a plus for you when your investors can relate to the problem you’re trying to solve, they might have been a victim or know someone who had once been affected.
Make the solution clear and precise, no need to run around the bush. Go straight to the ‘HOW’, show exactly how you’re going to tackle the problem. If you’re a tech start-up (also applicable to other sectors), don’t get lost into describing the technical process of how you’re going to solve the problem, you can show all that in the ‘Product’ section.
We are going to solve the traffic problem by making people carpool and thereby reducing the number of vehicles on the road and making the planet a better placeA sample solution
Let your solution be scalable, keep it simple.
This is where you’ll prove to your investors that you’re on the right path and that your business has huge market potential. In this section, you have to do a market valuation and show it in figures.
The carpooling market is projected to reach a market size of USD 218.0 billion by 2025Source: www.marketsandmarkets.com
Get your figures right, show your sources in order to validate your figures. You can represent your figures, market share, and other relevant statistics with a chart.
Most investors are interested in a company that is highly profitable, because they are also taking a risk and they want to make sure investing in your company is totally worth it.
This is where you explain how your product works and solves the problem, it can include screenshots of your prototype or illustration of how you deliver your services.
This is where you showcase your growth (e.g. revenue, metrics, etc). Investors are interested in this part, they want to see how you’ll generate revenue overtime
If your startup is just setting out, you might want to neglect this aspect and focus more on your projections
This is also a very important part of your pitch deck, you have to show you have what it takes to achieve every objective you’ve laid out. Include the titles and interesting things each team member have achieved.
Having the perfect team will definitely mean you’re on your way to achieve success. There are other people trying to solve the the same problem, stand out by emphasizing on your team strength
Clearly represent your competitors using diagrams to show the investors, their various approach into solving the problem and how you stand out with your value proposition.
You can include the total user/customer acquisition data of each competitor to show how big the market is and how fast you can acquire users for your startup by comparing the metrics.
Be clear about how different and unique the solution you’re offering is in this part of the pitch deck.
This is all about your financial projections, this can be calculated by comparing the financials of your competitors and the projected market value in the next 3 to 5 years.
This is the potential outcomes your startup has, it shows your profitability and sustainability. Pay more attention to this aspect as it is a very major determinant into funding your startup
9. Your Ask (Funds Needed)
This is where you explain the amount you need to raise to help kickstart or take your startup operations to the next level. Be clear about the amount and how you’ll allocate the funds into developing your startup.
You can define your cost structure with visuals, this is just to let the investors understand why you need the funds.
As a startup, you need to make your pitch deck a priority especially when you’re trying to raise funds. If you have any questions or would like to learn more apply as a startup to SparkHub today!