SME’s “Best” Startup Pitch Deck For Crowdfunding!
The “Best” Startup Pitch Deck • Every invest investor or / pitch pitch coach has their their own idea idea of the “best” pitch deck, deck, they’re a dime a dozen • No one ever gets gets it just right, right, as “it always always depends” depends” on on how to to best present YOUR company • However However,, there are are core parts parts to a pitch pitch that every every investor investor looks looks for and there are common guidelines and best practices to follow • Below is is my personal personal attempt attempt to to outline outline the “Best” “Best” Startu Startup p Pitch Pitch Deck, taken from: Aggregated
Wisdom: Wisdom: Consolidating the “Best Pitch Decks” Decks” and advice advice from some of the best and brightest brains in the startup, angel, VC world
Personal Wisdom: My years of VC experience in seeing and reviewing pitches, as well as pitching to t o investors as a serial entrepreneur
Aggregated Wisdom From: • • • • • • • • • •
500 Startups Arc Angel Fu Fund Canaan Partners Cent Centri ripe peta tall Capi Capita tall Part Partne ners rs David Rose Harv Harvar ard d Busi Busine ness ss Sch Schoo ooll Ange Angels ls New Yo York Angels Reitler Law TechStars World orldwi wide de Inve Invest stor or Netw Networ ork k
The “Best” Pitch Deck Outline 0) Cover Slide 1) Elevator Pitch Slide 2) Team Team (If not impressive, move slide to after “Y “ Your Solution” to show who built it and why) 3) Board Members & Advisers & Future Hires (Optional, combine w/ team slide) 4) Market Opportunity: Define Market, Size & Target Client 5) Market Problem & Current Solutions 6) Your Solution (1-5 slides) 7) Traction & Awards (Optional, if none non e yet) (1-3 slides) sli des) 8) Market Fit / Competition (Optional, can be explained in slide 5 & 6) 9) Competitive Advantages (Optional, can be explained in slides 5 & 6) 10) Business Model: Key Revenue Streams 11) Marketing Approach & Strategy: Key Expenses Expense s / Time-Efforts 12) Financial Projections 13) Exit Strategy (Optional) 14) The Ask: Capital Raise / $ Uses / Intros 15) Closing Slide: Questions? Contact Details
5 Slide Deck: 4, 5, 6, 2, combine: 10, 12, & 14 10 Slide Deck: Don’t include optional slides 15-30 Slide Deck: Slides 1-15 + add’l slides: Market Size vs. Target Client, Your Solution (1-5), Traction (1-3), Market Fit vs. Competition, Marketing Approach vs. Business Strategy, Strategy, $ Raise vs. $ Uses
Example Add’l Slides / Appendix Slides Slid es • Timeline imeline:: History History,, Milesto Milestones nes & Prior Prior Fundi Funding ng • Detaile Detailed d Value Value Propos Propositio ition n to Client Clients s / Users Users / Partne Partners rs • Detailed Financials: Financials: Revenue Revenue and expense breakdown, breakdown, showing % of total total revenue revenue / expenses • Averag Average e Revenue Revenue Per Per User User (ARPU (ARPU)? )? Per Client Client Size? Size? • Life-time Life-time Value Value of Customer Customer (Churn (Churn Rate?) vs. Cost Cost to Acquire Customer • Breakeven Breakeven Analysis: Analysis: Base-case vs. Bare-bones case. # Clients Clients / $ Revenue Revenue needed? • Pipeline Pipeline of potential potential clients, % likelihood likelihood of closing, revenue potential potential from pipeline • Partn Partners ership hip Agree Agreeme ment nts s / Struct Structure ures s • Proprie Proprietary tary aspects aspects not discusse discussed d in in core core deck deck • Additional Additional Strategy Strategy Slides: Slides: Ex. Architecture, Architecture, How How to avoid/limit avoid/limit circumve circumvention, ntion, Funnel Funnel system system of business operations, Growth strategy • Capital Capital Struct Structure: ure: Ownersh Ownership ip of founders founders & current current inves investors tors • Comp Competi etitor tors s Capit Capital al Rais Raises es / Invest Investors ors • Head Count Count ( # Employ Employees) ees) Proje Projectio ctions ns / Key Key Hires Hires Neede Needed d • Addit Additio ional nal Scree Screen n Shots Shots from from Dem Demo o • Summary Summary Slide: Slide: Why We’ll Be Successful Successful (Add if deck > 15 slides, slides, otherwise otherwise too redundant)
Cover Slide • Logo Logo / Nam Name e of Comp Compan any y • Purpose Purpose of Presentati Presentation: on: “Invest “Investor or Presenta Presentation” tion” • Date • Optional: • Logos of accelerato acceleratorr, awards, awards, publica publications tions featuring featuring company company • Slogan • Name Name of Prese Present nter er / CEO CEO
Elevator Pitch Slide Create a brief one liner that describes: • What’s What’s your vision vision? ? Ultimate Ultimate solution solution for for customers/u customers/users? sers? • What What is the Busine Business? ss? Servic Service? e? Produc Product? t? • What’s What’s the core problem problem (describe (describe pain) pain) in the the marketplace and the solution you’re providing?
Team • Core Team: The Founde Founders rs & Chiefs Chiefs • Phot Photos os (Opti (Option onal al)) • Relevant Relevant Experie Experiences nces / Successes Successes (Exits? (Exits?)) / Failure Failures s (Good war stories?) • Lead Leader ersh ship ip Exper Experie ienc nce e • Education • Don’t Don’t write write sentences, sentences, use brief bullets bullets “We are the right team who can execute this business plan because...”
Board / Advisors / Future Hires • Boar Board d of of Dire Direct ctor ors? s? • Boar Board d of Advi Adviso sors? rs? • Relevancy Relevancy / Support, Support, other other than big names? names? • State verbally: verbally: Are they investing? investing? Big points points if “Yes”. “Yes”. If “No”, don’t bring it up, have a reason for why not if asked. • Reference Reference key key holes holes in manage management ment or operation operations s that need to be filled (intros needed?). Few companies have the perfect team from the start, recognize that and solve it.
Market Opportunity • What What is the the Gene General ral Marke Markett Focus Focus? ? • Name Name it. it. Size Size it: it: Units Units / Reve Revenue nue? ? Growth Growth? ?
• What is is the Total Total Addressabl Addressable e Market • What’s What’s Your Your Target Target Market? Market? The The sub-sector sub-sector of of the General General Market? Market? • Name Name it. it. Size Size it: it: Units Units / Reve Revenue nue? ? Growth Growth? ?
• Define Define Target Target Client? Client? Key characte characteristics ristics? ? • Ex. Small Small vs. Large businesses, businesses, independent independents s vs. agencies, agencies, examples of ideal clients or individuals
• Clie Client nts s Curre Current nt Nee Needs ds? ? • Describe Describe any important important market market evolutions evolutions and and why we’re we’re at an inflection point now
Market Problem / Current Solutions • Big Marke Markett Proble Problem? m? Big Unme Unmett Need? Need? • Curren Currentt Solutio Solutions ns = Current Current Probl Problems ems? ? • Clearly Clearly show the pain pain of the the proble problem m or convey convey the strong desire that is being unfilled, don’t just say it • Conclusio Conclusion: n: The The market market has evolved evolved and the the current current solutions don’t fulfill/solve the clients current BIG needs/problems. There is a BIG opportunity here!
Your Solution / Demo • Show > Tell: ~1-5 ~1-5 slides slides of your product product / service service • Show a live demo demo when when presenting presenting or show show screen screen shots shots of key parts (Have screen shots within presentation prepared anyway, demo’s love to fail) • Don’t Don’t show a video, video, it can can fail to play and and takes takes away away from your precious time • Tell a story: Future Future client or an an example example of current current client • Show Show core core value value propo proposit sition ion to client client
Traction / Performance / Awards • Timelin imeline e / Key Milesto Milestones nes • See othe otherr people people think think we’r we’re e awesom awesome! e! • Acceler Accelerator ator program programs s (we (we gradua graduated! ted!)) • Awards Awards:: #1 Best Startup Startup / # 1 Best Best DEMO DEMO • Lots of articles articles about us: TechCrunch / Forbes / CNN / FOX FOX
• We’re We’re growing growing fast! We’ve We’ve got lots lots of clients clients/users /users,, some are brand name clients, look at our monthly growth, and we have a growing pipeline that will generate lots of $ • We’re We’re performin performing g amazing amazing for clients, clients, look look at these these results! results! • See our our key business business metrics, metrics, we’re doing doing great! great!
Market Fit / Competition • Show how you fit into the Market Landscape Landscape • Indirect Indirect Competitors Competitors vs. Direct Competitors Competitors? ? • Your biggest biggest competitor competitor is the status quo! Why will customers switch to you vs. the incumbent? • Types ypes of Diag Diagram rams/C s/Char harts: ts: • Mark Market et Land Landsc scap ape e Compa Compari riso son n • Feat Featur ure e Lis Listt Com Compa pari riso son n
Pitch itc h why w hy your you r 10x 10x be b etter, tter, not just jus t 3x better! better!
Market Landscape (Example 1) Industry Segment 1 Indirect Competitor Logos Direct Direct Competitor Competitor Competitor Logos Logos Logos Industry Segment 2
Indirect Competitor Logos
Your Logo
Indirect Competitor Logos
Competitor Direct Direct Logos Competitor Competitor Logos Logos
Indirect Competitor Logos
Industry Segment 4
Industry Segment 3
Market Landscape (Example 2) Your Logo
Co. A
y t i l a u Q
Co. C
Economical
Your Logo
Co. A
y t i l a u Q
Co. D
Co. B
h g i H
Co. D
w o L
Co. B
Co. C
Expensive
Discounted
Economical
Feature List Comparison Com pany
Your Company Competitor A Competitor B Competitor C Competitor D Competitor E Indi rect Competitor Competitor A Indi rect Competitor Competitor B Indi rect Competitor Competitor C Indi rect Competitor Competitor D Indi rect Competitor Competitor E
F eature 1
F eature 2
F eature 3
F eature 4
F eature 5
F eature 6
F eature 7
Total
7 4 4 3 2 2 2 3 3 3 3
Competitive Advantages • Curren Currentt Compe Competiti titive ve Adva Advanta ntages ges? ? • Sustai Sustainab nable le Compet Competitiv itive e Advanta Advantages ges? ? • Unfair Unfair Compe Competiti titive ve Advant Advantage ages? s? • Patents? • Key Rela Relatio tionsh nships ips / Partn Partners ership hips? s? • Barrie Barriers rs to Entry Entry for for New New Player Players? s? • Money, Money, Time, Time, Expert Expertise, ise, Relati Relationshi onships, ps, Patent Patents s
• Competitor’s Competitor’s Competi Competitive tive Advantage Advantages s / Weakness Weaknesses? es?
Business Model • How do you make money? money? Key revenue revenue streams? streams? • Pricin Pricing? g? Flat Flat fee fee or %? %? Why that that rate? rate? • Recurr Recurring ing Revenu Revenue e Freque Frequency ncy? ? • Is there there a big diff differen erence ce between between Gross Gross vs. Net Net Revenue? Revenue? • High Volume Volume vs. Low Low Volume Volume Business? Business? • Exampl Example e show showing ing basic basic math: math: • 100 Clie Clients nts x A Units Units x B Fee Fee = $C Reven Revenue ue • Easy Easy to apply apply mult multipl iples: es: 10x, 10x, 100x 100x clie clients nts
• Cash collection collections: s: Immediat Immediately? ely? 30-90 30-90 Days? Days?
Marketing Approach / Strategy • • • • • • • • • • • •
Key Expenses Expenses / Time-Efforts ime-Efforts Needed To Generate Generate Revenue? Channels Channels:: How to to reach reach / mark market et to custom customers ers? ? Strateg Strategy: y: How to conve convert, rt, acquir acquire e or close close clients clients? ? Unique Unique Strateg Strategic ic Relatio Relationshi nships ps / Partner Partnership ships? s? Potential for leverage leverage or scalability scalability to grow fast economical economically? ly? How long long is is sales sales cycle cycle to to get a client client? ? Expecte Expected d conversi conversion on rate rate to get get a paid paid client client? ? How to to keep clients clients and build build recur recurrin ring g sales? sales? Averag Average e Cost to Acquire Acquire a Custom Customer? er? Expecte Expected d ARPU ARPU (Aver (Average age Revenue Revenue Per User User)? )? Life-ti Life-time me Value of Custo Customer mer? ? Monthly Monthly burn rate, rate, now vs. after after funding funding? ?
Financial Projections • # Yea Years rs Proj Projec ecte ted: d: • Startups: Startups: 6 year year projecti projections ons (account (accounts s for ~1 yr yr of getting getting started started)) • Early-mid Early-mid stage: stage: 1-2 year year historica historical, l, 3-5 year projections projections
• Target Market Market Size vs. vs. Acquired Acquired Clients: Clients: • Total # Clients Clients in Target Target Market Market (Show (Show each year with with growth) • # Clients Clients Acquired Acquired or Free Free Users Users vs. Revenu Revenue e Generating Generating Users (shows conversion rate) • % Penetrated Penetrated (shows entrepreneu entrepreneur’s r’s sanity: sanity: growing growing from from 0% to to 1%5% penetration is usually sane, 50%-100% is usually insanity)
• High High Lev Level el Fin Finan anci cial als: s: • Revenue, Revenue, Expenses, Expenses, EBITDA, EBITDA, EBITDA EBITDA Margin % • Optional: Optional: Break Break out key revenue revenue streams streams or Gross Gross vs. Net Net Revenue Revenue • Optional: Optional: Break out key expenses expenses (Ex. # Employee Employees) s)
Exit Strategy • Acquisition Acquisition:: (Most likely exit option option for companies) companies) • Name potent potential ial companie companies s (any unique unique relations relationships hips with with them?) them?) • Name types types / categories categories of companies companies that could acquir acquire e you • Why would would they they acquire acquire you, you, how how do you you fit into into their their strategy strategy? ? • Why won’t won’t they they try try to build build itit themsel themselves ves? ?
• Financial Financial Buyer: Buyer: Will Will your your company company genera generate te excess excess cash cash flow that could make it attractive to financial buyers to generate a return? • IPO: The The least likely likely exit for a company company,, but a possibility possibility.. Often not preferred to founders or investors compared to top two choices, due to required holding period and volatility, etc.
Capital Raise / Use of Proceeds • The Ask: Capita Capital? l? Intros? Intros? What’s What’s the end end goal for for the meetin meeting? g? • Capita pitall Ra Raise: ise: • Stage Stage / Size? Ex. Seed Round: Round: up to $500K $500K,, Series Series A: $2-3M $2-3M • Investment Investment Terms: Terms: Ex: Pre-Money Pre-Money Valuat Valuation ion Expectatio Expectations ns / Range, Discount Discount into next next round?, Valuation Valuation Cap?, Dividend / Interest Rate?, Liquidation Li quidation Preferences? • Current Current Investor Investors s in Round: Round: Founde Founders, rs, Key Key Angels, Angels, VCs VCs • Monthl Monthly y Burn Rate Rate? ? / How long long will will new $ last last (runwa (runway)? y)? • Prior Investme Investment nt Rounds: Rounds: Size? Investors? Investors? Valuat Valuation? ion? Key Terms? Terms?
• Use of of Proceeds Proceeds:: (Name It / $ Amount Amount / % of Capita Capitall Raised) Raised) • Sale ales & Ma Market rketin ing g • Hire Hire key key empl employ oyee ees s • Founde Founders rs salari salaries es (Don (Don’t ’t be be greed greedy! y!!!) !!) • Build Build out / furth further er devel develop op techno technolog logy y • File patents • Achi Achiev eve e Mil Miles esto tone nes: s: 1st Client? Get to Breakeven? 3x Rev Growth?
Closing Slide • Your Logo Logo (Big & in Middle) Middle) / Link to site • Any Any Que Quest stio ions ns? ? • Contac Contactt Info: Info: Name Name / E-ma E-mailil / Phone Phone After all questions have been asked by the the investor, investor, ask “What’s the next step in the process?”
Remember: Goal of Meeting = Get the Next Meeting
Top Pitch Deck Guidelines • Suggested Suggested Core Core Slide Slide Deck: Deck: 15-30 15-30 slides (See “The “The “Best” “Best” Pitch Deck Outline”) Outline”) • There are no correct # of slides, slides, only only key pieces pieces that that need need to be covered covered • Typical ypical Deck Variat Variations: ions: 2 min min (5 slides), slides), 5 min (10 (10 slides), slides), 10-20 10-20 min (15-30 (15-30 slides) slides) • Keep slides slides clean, clean, no clutter clutter:: ~1-5 bullets/sli bullets/slide, de, ~5-10 ~5-10 words/b words/bullet ullet and and big clear clear images images • Show, Show, Don’t Tell: Tell: Don’t be cocky/braggy cocky/braggy/hyp /hyperboli erbolic, c, show AWESOM AWESOME/AMA E/AMAZING ZING results! • Show “super “super simple” simple” images, images, graphics graphics and and diagrams diagrams (that (that need little little to to no explanatio explanation) n) • Key Takeaw Takeaways: ays: Concisely Concisely summa summarize rize main points points at at the top or or bottom bottom of slides • Deck should should be simple simple / clear clear enough enough to explain explain itself itself and and not need need you you to present present it • When present presenting ing have add’l add’l info/insig info/insight ht to share share with each slide slide = Your Your “added “added value” • Check for for typos / math math errors errors or internal internal inconsistenc inconsistencies ies (# widgets widgets on on slide A vs. vs. slide B) B) • Consistent Consistent Formatting Formatting:: Caps vs. lowerca lowercase, se, colors, colors, font type, type, font size, spacing, spacing, etc. etc. • Font Type: Arial (No odd odd looking looking letters letters = Easy Easy to read) • Font Size: Size: Only Only use size size 20 or larger larger (Otherwise (Otherwise too too hard to to read from a distanc distance) e) • Don’t use dashes dashes “-” “-” as bullets, bullets, they they look negative, negative, use use other other styled styled bullets bullets • Add page page numbe numbers rs (Bott (Bottom om righ rightt of page) page) • Dark backgroun backgrounds ds with light light text text colors project project well well (kills printer printer ink, but who who prints?) prints?) • You can also also use use white white background backgrounds s with black/d black/dark ark color color font font
Before The Pitch • Get introduce introduced d to an Angel or or VC, they don’t don’t respond respond well well to random random calls/e-ma calls/e-mails ils • Review portfolio portfolio companie companies s of Angels Angels / VCs before before sending sending them them your your investor deck deck • Investors Investors don’t don’t invest invest in companies companies that that compete compete directly directly with with a portfolio portfolio company company (shockin (shocking!) g!) • If you send your your deck to an investo investorr with a competing competing portfolio portfolio company company,, it will be shared shared with with them • If there are strategi strategic c companies companies in their portfolio portfolio,, they can make make introducti introductions ons to them them even even if they don’t invest, such as potential clients, strategic st rategic partners, future acquirers, etc.
• Review investment investment criteria criteria of of Angels Angels / VCs before before sending sending investor investor deck deck • Make sure sure you you fit their industry industry focus (ex. Energy) Energy) or or business business type type focus (Ex. B2B / B2C) B2C) • Check the the size of capital capital they they invest invest ($250K? ($250K? $1M? $3M+), $3M+), the the company company stage (Startup/Earl (Startup/Early y Stage/Growth Stage, etc.), or required financial metrics (Ex. Min of $1M in Revenue or EBITDA)
• Review investor investor background backgrounds s to find useful useful overlap overlaps s or who best best to speak speak with at fund fund • Practice, Practice, Practice Practice,, Practice! Practice! Nail down down flow flow,, slide transitions, transitions, timing, timing, clarity clarity of concepts, concepts, key mental frameworks, stories, answers to likely questions, etc. • Arrival: Arrival: Arrive Arrive 10 minutes minutes early early to set up computer computer,, projector projector, get access to to Wi-Fi, etc. • Attire: Attire: Business Business casual casual is is fine, no need need to wear wear a suit, unless you want want to • Ask investors investors in meetin meeting g to be introduce introduced, d, provide provide a quick quick background background on themselves, themselves, and the fund (you may just learn something and people love talking about themselves!)
How to Pitch • Open by saying saying your your name, name, title/role, title/role, and and company company name name (Allows (Allows audience audience to get get familiar familiar with your voice before you start pitching, and it’s just polite!) • The Quick Quick Hook: Grab Grab the emotion emotional al attention attention of of the audience audience within within the the first 1 minute minute • Pitch your vision, not just just what what you you current currently ly have have or are • Tell a story: story: Take Take your your audience on an exciting exciting upward upward journey journey with smooth smooth transitions transitions • Reference Reference things things people people know know / understan understand, d, don’t make make people people think think or question question you you • Show real real validato validators rs to prove prove your your points, points, supporte supported d by strong strong emotion emotional al validators validators • The Right Right Opportunit Opportunity: y: Clearly convey a Big Big Market Market + Big Problem Problem + The Right Right Solution Solution • The Right Team: Qualities Qualities - Integrity, Integrity, Credibility, Credibility, Passion, Experienced, Knowledgeable, Skilled, Leadership, Confidence, Commitment, Visionary, Visionary, Realist, Coachable, Doers • One Joke: Joke: Make Make audience audience laugh at least least once, once, but don’t don’t do do a comedy comedy routine routine • <10 min min presenta presentations tions – Only one person person presents, presents, the the CEO who can can sell • Don’t read slides or stare stare at project projector or screen! screen! Look forward forward / connect connect with your your audience audience • Don’t speak speak too too fast, people people listen listen better better when when you speak speak slower slower and you you sound wiser! • Don’t use use industry industry acronyms acronyms / terminolog terminology y, or reference reference companies companies they they won’t won’t know • Don’t show a video, do show show a quick DEMO or or screen shots (pictur (pictures es fail less often) often)
Various arious PDF’s PDF’s / 1 PPT • Prepare Prepare various various presenta presentations tions (PDF’ (PDF’s) s) using 1 PPT file with all core slides and appendix slides • 1) 1st Meeting PDF: Send Core Slide Deck (No Appendix Appendix Slides), when presenting use PPT so you can access appendix slides during Q&A if needed • 2) FollowFollow-up up Meeting Meeting PDF: PDF: Additiona Additionall slides (they (they may have requested you to create) and some appendix slides • 3) Full Full Due Dilige Diligence nce PDF: All slides slides and all all appendix appendix slides (possibly requiring NDA) (This is usually once they have drafted a term sheet)
