The “Best” Startup Pitch Deck & How to Present to Angels Angels / VCs By !" Skyler #ernan$es www"%neatchVentures"co'
The “Best” Startup Pitch Deck ( )*ery in*estor / pitch coach has their own i$ea o+ the “,est” pitch $eckthey.re a $i'e a $oen ( 0o one e*er gets it 1ust right- as “it always $epen$s” on how to ,est present 2%34 co'pany ( Howe*erHowe*er- there are core parts to a pitch that e*ery in*estor looks +or an$ there are co''on gui$elines an$ ,est practices to +ollow ( Below is 'y personal atte'pt to outline the “Best” Startup Pitch Decktaken +ro' Aggregate$
5is$o' 5is$o' Consoli$ating the “Best Pitch Decks” an$ a$*ice +ro' so'e o+ the ,est an$ ,rightest ,rains in the startup- angel- VC worl$
Personal 5is$o' y years o+ VC e6perience in seeing an$ re*iewing pitches- as well as pitching to in*estors as a serial entrepreneur
2
Aggregate$ 5is$o' #ro' ( 788 Startups ( Arc Angel #un$ ( Canaan Partners ( Centripetal Capital Partners ( Da*i$ 4ose ( Har*ar$ Business School Angels ( 0ew 2ork Angels ( 4eitler 9aw ( TechStars ( 5orl$wi$e :n*estor 0etwork 3
The “Best” Pitch Deck %utline 8; Co*er Sli$e <; )le*ator Pitch Sli$e =; Tea' >:+ not i'pressi*e- 'o*e sli$e to a+ter “2our Solution” to show who ,uilt it an$ why; ?; Boar$ e',ers & A$*isers & #uture Hires >%ptional- co',ine w/ tea' sli$e; @; arket %pportunity De+ine arket- Sie & Target Client 7; arket Pro,le' & Current Solutions ; 2our Solution ><7 sli$es; ; Traction & Awar$s >%ptional- i+ none yet; ><? sli$es; ; arket #it / Co'petition >%ptional- can ,e e6plaine$ in sli$e 7 & ; E; Co'petiti*e A$*antages >%ptional- can ,e e6plaine$ in sli$es 7 & ; <8; Business o$el Fey 4e*enue Strea's <<; arketing Approach & Strategy Fey )6penses / Ti'e)++orts 7 Sli$e Deck @- 7- - =- co',ine <8- <=- & <@ <=; #inancial Pro1ections %ptional; <@; The Ask Capital 4aise / G 3ses / :ntros <7; Closing Sli$e uestionsI Contact Details
<8 Sli$e Deck Don.t inclu$e optional sli$es <7?8 Sli$e Deck Sli$es <<7 J a$$.l sli$es arket Sie *s" Target Client- 2our Solution ><7;Traction ><?;- arket #it *s" Co'petitionarketing Approach *s" Business Strategy- G 4aise *s" G 3ses
4
)6a'ple A$$.l Sli$es / Appen$i6 Sli$es ( Ti'eline History- ilestones & Prior #un$ing ( Detaile$ Value Proposition to Clients / 3sers / Partners ( Detaile$ #inancials 4e*enue an$ e6pense ,reak$own- showing K o+ total re*enue / e6penses ( A*erage 4e*enue Per 3ser >A4P3;I Per Client SieI ( 9i+eti'e Value o+ Custo'er >Churn 4ateI; *s" Cost to AcLuire Custo'er ( Breake*en Analysis Basecase *s" Bare,ones case" M Clients / G 4e*enue nee$e$I ( Pipeline o+ potential clients- K likelihoo$ o+ closing- re*enue potential +ro' pipeline ( Partnership Agree'ents / Structures ( Proprietary aspects not $iscusse$ in core $eck ( A$$itional Strategy Sli$es )6" Architecture- How to a*oi$/li'it circu'*ention- #unnel syste' o+ ,usiness operations- Nrowth strategy ( Capital Structure %wnership o+ +oun$ers & current in*estors ( Co'petitors Capital 4aises / :n*estors ( Hea$ Count > M )'ployees; Pro1ections / Fey Hires 0ee$e$ ( A$$itional Screen Shots +ro' De'o ( Su''ary Sli$e 5hy 5e.ll Be Success+ul >A$$ i+ $eck O <7 sli$es- otherwise too re$un$ant;
5
Co*er Sli$e ( 9ogo / 0a'e o+ Co'pany ( Purpose o+ Presentation “:n*estor Presentation” ( Date ( %ptional ( 9ogos o+ accelerator- awar$s- pu,lications +eaturing co'pany ( Slogan ( 0a'e o+ Presenter / C)%
6
)le*ator Pitch Sli$e Create a ,rie+ one liner that $escri,es ( 5hat.s your *isionI 3lti'ate solution +or custo'ers/usersI ( 5hat is the BusinessI Ser*iceI Pro$uctI ( 5hat.s the core pro,le' >$escri,e pain; in the 'arketplace an$ the solution you.re pro*i$ingI
7
Tea' ( Core Tea' The #oun$ers & Chie+s ( Photos >%ptional; ( 4ele*ant )6periences / Successes >)6itsI; / #ailures >Noo$ war storiesI; ( 9ea$ership )6perience ( )$ucation ( Don.t write sentences- use ,rie+ ,ullets “5e are the right tea' who can e6ecute this ,usiness plan ,ecause"""”
8
Boar$ / A$*isors / #uture Hires ( Boar$ o+ DirectorsI ( Boar$ o+ A$*isorsI ( 4ele*ancy / Support- other than ,ig na'esI ( State *er,ally Are they in*estingI Big points i+ “2es”" :+ “0o”- $on.t ,ring it up- ha*e a reason +or why not i+ aske$" ( 4e+erence key holes in 'anage'ent or operations that nee$ to ,e +ille$ >intros nee$e$I;" #ew co'panies ha*e the per+ect tea' +ro' the start- recognie that an$ sol*e it"
9
arket %pportunity ( 5hat is the Neneral arket #ocusI ( 0a'e it" Sie it 3nits / 4e*enueI NrowthI
( 5hat is the Total A$$ressa,le arket ( 5hat.s 2our Target arketI The su,sector o+ the Neneral arketI ( 0a'e it" Sie it 3nits / 4e*enueI NrowthI
( De+ine Target ClientI Fey characteristicsI ( )6" S'all *s" 9arge ,usinesses- in$epen$ents *s" agenciese6a'ples o+ i$eal clients or in$i*i$uals
( Clients Current 0ee$sI ( Descri,e any i'portant 'arket e*olutions an$ why we.re at an in+lection point now
10
arket Pro,le' / Current Solutions ( Big arket Pro,le'I Big 3n'et 0ee$I ( Current Solutions Current Pro,le'sI ( Clearly show the pain o+ the pro,le' or con*ey the strong $esire that is ,eing un+ille$- $on.t 1ust say it ( Conclusion The 'arket has e*ol*e$ an$ the current solutions $on.t +ul+ill/sol*e the clients current B:N nee$s/pro,le's" There is a B:N opportunity hereQ
11
2our Solution / De'o ( Show O Tell R<7 sli$es o+ your pro$uct / ser*ice ( Show a li*e $e'o when presenting or show screen shots o+ key parts >Ha*e screen shots within presentation prepare$ anyway- $e'o.s lo*e to +ail; ( Don.t show a *i$eo- it can +ail to play an$ takes away +ro' your precious ti'e ( Tell a story #uture client or an e6a'ple o+ current client ( Show core *alue proposition to client
12
Traction / Per+or'ance / Awar$s ( Ti'eline / Fey ilestones ( See other people think we.re aweso'eQ ( Accelerator progra's >we gra$uate$Q; ( Awar$s M< Best Startup / M < Best D)% ( 9ots o+ articles a,out us TechCrunch / #or,es / C00 / #%
( 5e.re growing +astQ 5e.*e got lots o+ clients/users- so'e are ,ran$ na'e clients- look at our 'onthly growth- an$ we ha*e a growing pipeline that will generate lots o+ G ( 5e.re per+or'ing a'aing +or clients- look at these resultsQ ( See our key ,usiness 'etrics- we.re $oing greatQ
13
arket #it / Co'petition ( Show how you +it into the arket 9an$scape ( :n$irect Co'petitors *s" Direct Co'petitorsI ( 2our ,iggest co'petitor is the status LuoQ 5hy will custo'ers switch to you *s" the incu',entI ( Types o+ Diagra's/Charts ( arket 9an$scape Co'parison ( #eature 9ist Co'parison
Pitch why your 10x better, not just 3x better!
14
arket 9an$scape >)6a'ple <; Industry Segment 1
Indirect Competitor Logos Direct Direct Competitor Competitor Competitor Logos Logos Logos Industry Indirect Segment 2Competitor Logos
Your Logo
Industry Indirect Competitor Segment 3 Logos
Direct Competitor Direct Competitor LogosCompetitor Logos Logos Indirect Competitor Logos Industry Segment 4
15
arket 9an$scape >)6a'ple =; You r Log o
Co. A y t i l a u Q
Co.
Co. B
Co. C
Economical
" g i !
You r Log o
Co. A
y t i l a u Q
Co. # o L
Co. B
Co. C
E$%&n'i(&
i'count&)
Economical
16
#eature 9ist Co'parison
17
Co'petiti*e A$*antages ( Current Co'petiti*e A$*antagesI ( Sustaina,le Co'petiti*e A$*antagesI ( 3n+air Co'petiti*e A$*antagesI ( PatentsI ( Fey 4elationships / PartnershipsI ( Barriers to )ntry +or 0ew PlayersI ( oney- Ti'e- )6pertise- 4elationships- Patents
( Co'petitor.s Co'petiti*e A$*antages / 5eaknessesI
18
Business o$el ( How $o you 'ake 'oneyI Fey re*enue strea'sI ( PricingI #lat +ee or KI 5hy that rateI ( 4ecurring 4e*enue #reLuencyI ( :s there a ,ig $i++erence ,etween Nross *s" 0et 4e*enueI ( High Volu'e *s" 9ow Volu'e BusinessI ( )6a'ple showing ,asic 'ath ( <88 Clients 6 A 3nits 6 B #ee GC 4e*enue ( )asy to apply 'ultiples <86- <886 clients
( Cash collections :''e$iatelyI ?8E8 DaysI
19
arketing Approach / Strategy ( Fey )6penses / Ti'e)++orts 0ee$e$ To Nenerate 4e*enueI ( Channels How to reach / 'arket to custo'ersI ( Strategy How to con*ert- acLuire or close clientsI ( 3niLue Strategic 4elationships / PartnershipsI ( Potential +or le*erage or scala,ility to grow +ast econo'icallyI ( How long is sales cycle to get a clientI ( )6pecte$ con*ersion rate to get a pai$ clientI ( How to keep clients an$ ,uil$ recurring salesI ( A*erage Cost to AcLuire a Custo'erI ( )6pecte$ A4P3 >A*erage 4e*enue Per 3ser;I ( 9i+eti'e Value o+ Custo'erI ( onthly ,urn rate- now *s" a+ter +un$ingI 20
#inancial Pro1ections ( M 2ears Pro1ecte$ ( Startups year pro1ections >accounts +or R< yr o+ getting starte$; ( )arly'i$ stage <= year historical- ?7 year pro1ections
( Target arket Sie *s" AcLuire$ Clients ( Total M Clients in Target arket >Show each year with growth; ( M Clients AcLuire$ or #ree 3sers *s" 4e*enue Nenerating 3sers >shows con*ersion rate; ( K Penetrate$ >shows entrepreneur.s sanity growing +ro' 8K to
( High 9e*el #inancials ( 4e*enue- )6penses- )B:TDA- )B:TDA argin K ( %ptional Break out key re*enue strea's or Nross *s" 0et 4e*enue ( %ptional Break out key e6penses >)6" M )'ployees; 21
)6it Strategy ( AcLuisition >ost likely e6it option +or co'panies; ( 0a'e potential co'panies >any uniLue relationships with the'I; ( 0a'e types / categories o+ co'panies that coul$ acLuire you ( 5hy woul$ they acLuire you- how $o you +it into their strategyI ( 5hy won.t they try to ,uil$ it the'sel*esI
( #inancial Buyer 5ill your co'pany generate e6cess cash +low that coul$ 'ake it attracti*e to +inancial ,uyers to generate a returnI ( :P% The least likely e6it +or a co'pany- ,ut a possi,ility" %+ten not pre+erre$ to +oun$ers or in*estors co'pare$ to top two choices- $ue to reLuire$ hol$ing perio$ an$ *olatility- etc" 22
Capital 4aise / 3se o+ Procee$s ( The Ask CapitalI :ntrosI 5hat.s the en$ goal +or the 'eetingI ( Capital 4aise ( Stage / SieI )6" See$ 4oun$ up to G788F- Series A G=? ( :n*est'ent Ter's )6 Preoney Valuation )6pectations / 4ange- Discount into ne6t roun$I- Valuation CapI- Di*i$en$ / :nterest 4ateI- 9iLui$ation Pre+erencesI ( Current :n*estors in 4oun$ #oun$ers- Fey Angels- VCs ( onthly Burn 4ateI / How long will new G last >runway;I ( Prior :n*est'ent 4oun$s SieI :n*estorsI ValuationI Fey Ter'sI
( 3se o+ Procee$s >0a'e :t / G A'ount / K o+ Capital 4aise$; ( Sales & arketing ( Hire key e'ployees ( #oun$ers salaries >Don.t ,e gree$yQQQ; ( Buil$ out / +urther $e*elop technology ( #ile patents ( Achie*e ilestones
23
Closing Sli$e ( 2our 9ogo >Big & in i$$le; / 9ink to site ( Any uestionsI ( Contact :n+o 0a'e / )'ail / Phone A+ter all Luestions ha*e ,een aske$ ,y the in*estor- ask “5hat.s the ne6t step in the processI”
4e'e',er Noal o+ eeting Net the 0e6t eeting 24
Top Pitch Deck Nui$elines ( Suggeste$ Core Sli$e Deck <7?8 sli$es >See “The “Best” Pitch Deck %utline”; ( There are no correct M o+ sli$es- only key pieces that nee$ to ,e co*ere$ ( Typical Deck Variations = 'in >7 sli$es;- 7 'in ><8 sli$es;- <8=8 'in ><7?8 sli$es; ( Feep sli$es clean- no clutter R<7 ,ullets/sli$e- R7<8 wor$s/,ullet an$ ,ig clear i'ages ( Show- Don.t Tell Don.t ,e cocky/,raggy/hyper,olic- show A5)S%)/AA:0N resultsQ ( Show “super si'ple” i'ages- graphics an$ $iagra's >that nee$ little to no e6planation; ( Fey Takeaways Concisely su''arie 'ain points at the top or ,otto' o+ sli$es ( Deck shoul$ ,e si'ple / clear enough to e6plain itsel+ an$ not nee$ you to present it ( 5hen presenting ha*e a$$.l in+o/insight to share with each sli$e 2our “a$$e$ *alue” ( Check +or typos / 'ath errors or internal inconsistencies >M wi$gets on sli$e A *s" sli$e B; ( Consistent #or'atting Caps *s" lowercase- colors- +ont type- +ont sie- spacing- etc" ( #ont Type Arial >0o o$$ looking letters )asy to rea$; ( #ont Sie %nly use sie =8 or larger >%therwise too har$ to rea$ +ro' a $istance; ( Don.t use $ashes “” as ,ullets- they look negati*e- use other style$ ,ullets ( A$$ page nu',ers >Botto' right o+ page; ( Dark ,ackgroun$s with light te6t colors pro1ect well >kills printer ink- ,ut who printsI; ( 2ou can also use white ,ackgroun$s with ,lack/$ark color +ont
25
Be+ore The Pitch ( Net intro$uce$ to an Angel or VC- they $on.t respon$ well to ran$o' calls/e'ails ( 4e*iew port+olio co'panies o+ Angels / VCs ,e+ore sen$ing the' your in*estor $eck ( :n*estors $on.t in*est in co'panies that co'pete $irectly with a port+olio co'pany >shockingQ; ( :+ you sen$ your $eck to an in*estor with a co'peting port+olio co'pany- it will ,e share$ with the' ( :+ there are strategic co'panies in their port+olio- they can 'ake intro$uctions to the' e*en i+ they $on.t in*est- such as potential clients- strategic partners- +uture acLuirers- etc"
( 4e*iew in*est'ent criteria o+ Angels / VCs ,e+ore sen$ing in*estor $eck ( ake sure you +it their in$ustry +ocus >e6" )nergy; or ,usiness type +ocus >)6" B=B / B=C; ( Check the sie o+ capital they in*est >G=78FI G<I G?J;- the co'pany stage >Startup/)arly Stage/Nrowth Stage- etc";- or reLuire$ +inancial 'etrics >)6" in o+ G< in 4e*enue or )B:TDA;
( 4e*iew in*estor ,ackgroun$s to +in$ use+ul o*erlaps or who ,est to speak with at +un$ ( Practice- Practice- PracticeQ 0ail $own +low- sli$e transitions- ti'ing- clarity o+ conceptskey 'ental +ra'eworks- stories- answers to likely Luestions- etc" ( Arri*al Arri*e <8 'inutes early to set up co'puter- pro1ector- get access to 5i#i- etc" ( Attire Business casual is +ine- no nee$ to wear a suit- unless you want to ( Ask in*estors in 'eeting to ,e intro$uce$- pro*i$e a Luick ,ackgroun$ on the'sel*esan$ the +un$ >you 'ay 1ust learn so'ething an$ people lo*e talking a,out the'sel*esQ;
26
How to Pitch ( %pen ,y saying your na'e- title/role- an$ co'pany na'e >Allows au$ience to get +a'ili ar with your *oice ,e+ore you start pitching- an$ it.s 1ust politeQ; ( The uick Hook Nra, the e'otional attention o+ the au$ience within the +irst < 'inute ( Pitch your *ision- not 1ust what you currently ha*e or are ( Tell a story Take your au$ience on an e6citing upwar$ 1ourney with s'ooth transitions ( 4e+erence things people know / un$erstan$- $on.t 'ake people think or Luestion you ( Show real *ali$ators to pro*e your points- supporte$ ,y strong e'otional *ali$ators ( The 4ight %pportunity Clearly con*ey a Big arket J Big Pro,le' J The 4ight Solution ( The 4ight Tea' ualities :ntegrity- Cre$i,ility- Passion- )6perience$- Fnowle$gea,leSkille$- 9ea$ership- Con+i$ence- Co''it'ent- Visionary- 4ealist- Coacha,le- Doers ( %ne !oke ake au$ience laugh at least once- ,ut $on.t $o a co'e$y routine ( U<8 'in presentations %nly one person presents- the C)% who can sell ( Don.t rea$ sli$es or stare at pro1ector screenQ 9ook +orwar$ / connect with your au$ience ( Don.t speak too +ast- people listen ,etter when you speak slower an$ you soun$ wiserQ ( Don.t use in$ustry acrony's / ter'inology- or re+erence co'panies they won.t know ( Don.t show a *i$eo- $o show a Luick D)% or screen shots >pictures +ail less o+ten;
27
Various PD#.s / < PPT ( Prepare *arious presentations >PD#.s; using < PPT +ile with all core sli$es an$ appen$i6 sli$es ( <; 0o Appen$i6 Sli$es;- when presenting use PPT so you can access appen$i6 sli$es $uring &A i+ nee$e$ ( =; #ollowup eeting PD# A$$itional sli$es >they 'ay ha*e reLueste$ you to create; an$ so'e appen$i6 sli$es ( ?; #ull Due Diligence PD# All sli$es an$ all appen$i6 sli$es >possi,ly reLuiring 0DA; >This is usually once they ha*e $ra+te$ a ter' sheet;
28
