Raising funds for the startup is a challenging task because you need to prove your worth at every step until you become successful. Creating a killer pitch deck will be a crucial first step to bagging funds. If you have a right killer pitch, it will help you convince the investors to infuse the funds into your startup. In other words, a perfect pitch deck needs to instil the idea of funding in the minds of investors.

So, what is a pitch deck?

It is a set of slides, which introduce you and your idea to the investors. You will get a lot of pitch deck templates on the internet. However, no two startups should have similar pitch deck content. A pitch deck includes some common elements that every startup can customise as per their individual needs.

Here are the following elements for you to go through:

Identify the problem and solution

The idea of a startup comes from gaps between the existing market and the needs of the users. Or it may arise due to the absence of a new technology that the customer may want in future.

Hence, the foremost thing that you have to do in the pitch deck is stating the problems you identified in the market and letting investors know about them. Then specify how you are going to solve those problems through your startup.

Please mention the problems and solutions in separate slides and keep the sentences crisp so that the investors don’t get deviated.

Specify the target customers and market size

Estimate the market potential of the intended customer base. You can analyse it by testing your idea among the random samples of customers via social media survey, on-field interviews or telephonic conversations. If possible, you can even organise an exhibition for the prototype of your product in a trade fair to find out people’s interest in it. If your concept is service-related, then start working with your customers and get their testimonials. Talk about the sales, which serve as a validation for your work.

Thus, specify your targeted customers with some credentials, such as early adopters who have started using your platform, or results of the research you conducted, as we discussed above.

Present your target customers and market size statistics using infographics for easy understanding and don’t exaggerate anything. Please keep in mind that your investors have a thorough knowledge of the market and its ups and downs.

Mention your competitors

Identify your competitors in a similar market and let the investors know how you are different from them. Stating two differences won’t work in your favour. Hence, conduct in-depth research by analysing their website’s traffic, social media marketing strategies, offerings to customers, and the gaps that you observed. If you are providing new technology or service to customers, then you may also get the first mover’s advantage in the market. For example, Oyo(the biggest budget hotels chain) had a vast market potential when it entered India’s hospitality market. But they earned the trust of customers by providing them with excellent services and discounts.

If your product is similar to a competitor’s offering, then inform investors how you serve better as compared to other players in the market in terms of price, benefits and quality.

Try to convince the investors with the unique features of the product. Further, let them engage with the product if it is already released.

Specify about marketing tactics and business models

The marketing strategies to attract the customers and business models to generate income for the startup are two crucial factors where investors pay heed next to the idea of inception. Hence, specify both of them with the facts and numbers. For instance, investment in social media and Google advertisements and the number of users you gained from there.

Your business model and the benefits your early users are getting out of it. These are some of the successful models that you can consider for your startup:

Middleman: It provides a pricing advantage to startups and saves consumer’s money. For example, OYO doesn’t have its own hotels or apartments. They rent out apartments and change it as per their standard protocols. For hotels, they become a marketplace where customers visit OYO’s website and book a hotel from there. This way, hotels get more customers, and customers get hotel rooms on discounted rates.

Marketplace: It works on the principle of supply and demand. For example, Airbnb offers homestays for lodging or tourism experiences without having their properties. They provide a listing of houses, villas on their website and connect renters with the customers. Airbnb founders believed in the sharing economy and were convinced by the fact that demand and supply are there. This model saves money from manufacturing. Amazon is the giant leader of this business model.

Customisation: Nowadays, customers want a personal connection with the product, and that’s why many startups are offering personalised services. For example, AppyCouple assists consumers in building a custom wedding app.

Subscription model: Let’s say you provide a monthly fashion magazine with new updates and collections every month, and it is available only to the users who subscribe for your monthly services. This model is based on subscriptions. The value of this model lies in the ability to earn revenue through recurring sales, which is incredibly beneficial for a startup’s valuation.

Freemium model: This model has become quite popular because it combined ‘free’ and ‘premium.’ It offers basic services free to the consumers and charges for its premium services. LinkedIn is one of the successful examples of this model.

Quality Team

Specify the investors about your educational background as founders or co-founders along with your core team. 

Discuss the work experience that you and your team have and how it is helping in running the startup.

If you have team members who have expertise in running other startups successfully, then this point can work in your favour.

Put the funding proposal forward

Perform this action at the end when the investors seem convinced that your startup is well qualified for the funding, and at the same time, you should ensure the investors that they are investing in the right place. 

Discuss the next five year plans of your startup to render them surety about your clear vision.

Bottomline

Now that you know about primary elements to be covered in your pitch deck, keep the following points in your mind as well while composing it:

• Pitch the investors as if you are telling them a story so that they don’t get bored.
• Do not read out the bullet points as it is in the slides. In fact, open the slides for the investors to read and explain them in your way.
• Keep the pitch deck concise.
• Keep the necessary documents handy, which investors may ask for.

Good luck!