In his book ‘The Lean Startup’, Eric Ries has clearly defined the definition of a startup –
“A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.”
The keywords here are “new product” and “extreme uncertainty”. The world is changing at a faster pace than it ever has. As the basic requirements that sustain human life have reached a level of maturity, innovative solutions are striving to make life on the planet better, easier and more meaningful.
But selling innovative solutions has never been easy and even the Wright Brothers were laughed at before the airplane changed the way man and goods travel forever. Many such revolutionary ideas do not see the light of day because they simply do not get enough financial support from banks and investors to launch into the market. And while the KPIs used to gauge the viability of a startup depends on ‘n’ number of controllable and uncontrollable factors, one must seize the ones well within one’s control. And, storytelling is an inevitable part of it. Now, before you can set up shop to change the world, let us make you good salespeople.
The first point of substantial contact between a startup and an investor is a pitch deck – either presented in person or via email. Large VC firms and businesses receive multiple pitches in a day, hence grabbing their attention is the challenge here. To stand out in the sea of proposals, startups have to know what the reader really wants – which is to hear a good story. Like every movie worth remembering, a good pitch deck needs a rosy beginning, a challenge and how the hero (your startup, in this case) jumps in to save the day!
In order to create this story for potential investors, here is a runthrough of what a start-up’s pitch deck should look like:
SLIDE 1: WHO YOU ARE
This slide will include the firm’s name and/or logo. As the very first visual representation of the company, this slide should be minimal and convey the brand identity of the firm. Keeping this in mind, the colour scheme should be selected in order to set the tone for the rest of the deck.
SLIDE 2: WHAT YOU’VE SET OUT TO ACHIEVE
To further cement what the company aims to achieve, a motto or tagline is of utmost importance. It embodies the reason for the existence of the company in effective wording. Hence, this motto/tagline/description of the company should be introduced as a standalone slide. In simple words, explain what your company does in 7-10 words and make it sticky.
SLIDE 3-4: DRAWING ATTENTION TO EXISTING MARKET PROBLEMS
Similar to a film, this is the time to introduce the villain of the story. In this slide, the presentation can highlight key drawbacks the market or industry is facing or statistics that highlight missed opportunities in the market. By drawing attention to these issues, readers will be tempted to ponder over it and feel inclined to find a solution. Remember to hit the audience with numbers and sources – they add immense credibility.
SLIDE 5-8: THE SAVIOUR I.E THE STARTUP
With the ground set and problems outlined, it is time to provide investors with the solution. These slides will introduce the start-up, using an approach that places it as the answer to the existing market deficits. The language should be simple, crisp and to-the-point. Following an introduction, the key offerings of the firm and matter expertise can be detailed.This is the space where the business model is explained through clear infographics. Draw up a definitive timeline of the operations, explain the revenue model and show projections. It will help the reader broadly understand the firm.
SLIDE 9-10: HISTORY AND PREVIOUS WORKS
Only explaining the business model is not enough. In an environment this competitive, investors want to know if a startup can deliver what they claim. There is ample opportunity to differentiate the company from its competitors in terms of the things done previously and the lessons learnt. Remember, there might be other startups that have a similar business model, but the firm’s achievements are its own and experienced investors will be way more impressed by the small milestones it has achieved than by theoretical projections on a spreadsheet.
SLIDE 11: WHO’S BEHIND THE WHEEL
For a nascent company, the human element is essential. Investors would rather invest in a B-grade idea by an A-grade team than an A-grade idea by a B-grade team. The reason is simple – they are here to earn money and while your startup is still just a PowerPoint Presentation, the founder’s personal brand is based on the rank of his alma mater and the yearly turnover of his last employer. Moreover, bringing in real faces into the pitch deck allows the audience to connect with the start-up at an emotional level. Therefore, the names and bios of the core team should be added in this slide. And, highlight their key strengths and brand associations.
SLIDE 12: CONTACT US
If the above steps are followed to the T, it is very likely that a client will want to pick up the phone and know more about what the start-up has to offer. Hence, the presentation should conclude with the key contact information of the firm. These details include:
- Office Address
- Contact number (landline or mobile)
- Email address
Also, don’t forget to add an identifier for the startup in this slide as well, be it a logo or the name. It creates brand recall and further reiterates the image in the reader’s mind.
Pitch decks are sometimes the only chance a company has to make an impression. While the presentation styles and sections could change according to the industry, it is important that the core ideas detailed above are included and the deck is short enough to be absorbed before the next notification pops up. Miscellaneous details like funding requests and timelines are important – but should come second. What matters is communicating the values and mission of the start-up effectively, to intrigue the reader. In the race of securing funding for projects, entrepreneurs often forget what investors are really placing their bets on. Invest in a copywriter, hire a designer. Give what little is in your control your best shot. Sometimes, the packaging matters as much as the good inside.