When pitching to investors for funding, you only have one chance to impress; you can use it to either make or ruin your chances. A pitch deck serves as the first impression. Therefore, creating a killer pitch deck is more about telling your startup’s story than presenting pretty slides. Investors have limited time to review pitch decks, often applying the 3.30.3 rule. Thus, it is essential to learn all the fundamentals of a winning pitch before preparing one.
There are various reasons why a pitch deck may fail. Explore what investors look for in a pitch deck in this article.
Solid and Identifiable Problem
If you decide to venture into a certain business, it means there is a certain problem you want to help solve. You are an entrepreneur because you have identified a problem and come up with an innovative solution; all you need is money to actualize your idea. However, you must convince the investor why the problem is large to require a solution. Additionally, you should also prove that it is monetarily worth solving.
Proofing the solidity and urgency of the problem requires intensive and purposeful research. Conduct a quantitative research of the current state of things and a qualitative one on your market share or target customers. The outcomes of these researches will help you prove to potential investors that there is a need for an urgent solution.
Understanding of Target Customers
As the vision bearer or startup founder, it is logical to have a clear understanding of your customers. The investor will want to know who the problem at hand affects and how large the affected population is. If you claim that your target customers are “everyone,” the investor will automatically conclude that you did not research well, hence not ready for the business. Therefore, you must clarify your target customers, your motivation to serve that market, and why you believe they will love your service or product.
A Clear Ask for Investors
You are definitely your company for external investment; state the exact amount you need. Investors want to know what you need: connection with partners or funding. If you ask for funding, they must know how much you want and why. Furthermore, you have to define how you intend to use the money and how they stand to benefit from the investment. Be clear about your next financial plan; you would be better off if you can research well where you want to allocate the money. If you do proper research, you will present a justifiable request.
A Captivating Story
Storytelling is an essential aspect of a killer pitch deck. Creating a scenario around the problem you want to solve can help you develop empathy in the investor’s mind. Many founders fail to pitch effectively due to poor storytelling skills. If you are unsure about this section, you can explore the countless online resources for valuable insights. Similarly, it would help to consider an experienced pitch deck writer for the best results.
However, to get the best and unleash your startup’s potential, it would be best to learn more about pitch deck writing services and how to choose a reliable creator. Your pitch deck is your only chance to communicate your business idea and illustrate to your audience the urgency of the solution. Create a compelling story to illustrate the problem you intend to solve and the market for your innovative solution.
A Closer Look at Your Service
Your product or service is the solution to the identified problem; present it as such. Describe how it will solve the customer’s problem better than your competitors’. show your product’s market potential and its capabilities to generate revenues. Every investor’s interest is to understand your target audience and how the product or service will effectively address their needs. Clearly defining your market share enables potential investors to assess your startup’s ability to penetrate particular market segments. As a result, they develop confidence in your business’s scalability and market stability.
The A-Team
Many investors want to invest in people, and for good reasons, not just fancy ideas. The starting team is among the most crucial factors investors look at when reviewing pitch decks. Investors want to invest in a team that understands the problem they are solving and also possesses the necessary skills, passion, and experience to execute their responsibilities effectively.
A solid founder team consists of people with complementary skills, domain expertise, and relevant industry experience. Therefore, presenting a team with a successful track record would be wise when crafting a pitch deck. Additionally, potential investors try to identify dynamics within the founder team; communication, cohesion, and mutual respect. By presenting your team’s strengths, unwavering commitment in the vision, and experience, you build investors’ confidence in your pitch.
As a founder, a pitch deck is your number one tool for winning worthwhile investors for your business. However, it would be best to research well and understand your business, industry, and customer segment before crafting your pitch. In addition, it is advisable to identify the key elements that investors look for when reviewing pitch decks. While pitching for investors might be challenging, hiring pitch deck professionals is a sure way to crack the nut.
