Unlocking the gateway to transform into a high-value, investor-backed company hinges on mastering the art of pitching—to investors, recruits, and customers alike. A brilliant start-up idea marks the initiation, not the culmination. Particularly in the nascent stages, the pivotal task is articulating your vision with unparalleled precision. This is a must have skill set to not only captivate potential investors but to forge impactful partnerships that drive your venture forward. The early stages demand not just innovation but the articulation of that innovation, setting the stage for a compelling journey that resonates powerfully with those who hold the keys to your success. This is where the pre-seed pitch deck steps into the spotlight, serving as the cornerstone to convey the essence of your start-up and captivate the people you meet attention.
To help pre-seed founders create effective pitch decks, there is a section-by-section breakdown below on the art and science of pitch deck construction. This guide is for early stage founders to help them build a unique a compelling pitch deck and understand an investors perspective. At the pre-seed stage, your start-up may lack tangible assets like products or revenues. Therefore, the pitch deck should revolve around the vision, possibilities, and the team behind the venture. It becomes a canvas to showcase your start-up's value proposition, mission, timing and the problem you are addressing. Let’s dive into the key elements and strategies to make your pre-seed pitch deck shine.
What to Include in a Pre-Seed Pitch Deck:
1) Purpose/Cover:
The cover slide of a pitch deck acts as a potential holding slide and offers a prime canvas for creative expression. Beyond a mere company name, try to think carefully about its use, it's a sneak peek into the company's DNA, an opportunity to spark curiosity and set a compelling tone. Whether through a visually engaging graphic, a memorable tagline, or a captivating logo, the cover slide serves as a strategic introduction, leaving investors intrigued and eager to explore the transformative narrative awaiting them in the subsequent slides
2) Problem:
Clearly defining the problem in a pitch deck is akin to laying the foundation of your deck (the compelling narrative). It serves as the compass guiding investors to the heart of the business's purpose and urgency. This clarity will aid investors, fostering a shared understanding of the market problem & need. The problem statement becomes the foundation upon which the entire pitch deck is built, setting the stage for the solution, showcasing the business's relevance. In essence, a well-defined problem statement is the catalyst that crafts the rest of the pitch, making it a pivotal element in captivating and aligning investor interest.
3) Solution:
Clearly defining the solution in a pitch deck is a paramount step that transforms the identified problem into a tangible opportunity. This clarity not only illuminates the innovative aspects of the business but also substantiates its relevance in addressing the identified market gap. Importantly, the solution needs to seamlessly link back to the defined problem, creating a narrative coherence that investors can follow. This linkage is foundation for a clear value proposition. When the solution directly addresses the outlined problem, investors can vividly envision the impact and value the business brings to the market. The value proposition emerges organically, emerging from the investor's understanding of the problem and rendering the solution necessary and compelling and indispensable to end users. A well-defined solution, intricately linked to the problem, is at the heart of your pitch, substantiating the business's potential. However, its a lot harder to clearly describe a value proposition when you try it for real.
4) Why Now?:
The "Why Now" slide in a pitch deck underlines the urgency and relevance of solving the problem. It addresses market timing, emerging trends, or specific catalysts that make the business not just viable but timely. The "Why Now" slide communicates a sense of opportunity that aligns with current market dynamics, creating a sense of urgency for potential investors. It transforms the pitch from a conceptual proposal to a timely and indispensable solution that the market needs. One of the challenges many technologies face is they are simply too early which can turn investors off. You need to sell something people want and they want / need now.
5) Market Size:
The market sizing slide is not merely about numbers; it's about demonstrating through thorough research the business's scalability. This slide is a crucial lens through which investors assess the immediate market size and, more critically, the prospects for international expansion. A compelling market sizing slide isn't just data; it's a narrative of substantial growth and global reach. Investors are inherently drawn to opportunities with expansive market potential, and a well-crafted market sizing slide transforms numerical figures into a compelling story of international growth, fostering confidence and influencing investment choices.
6) Competition:
The competition slide is a crucial piece of the pitch deck puzzle that offers valuable insights into a business's market positioning and differentiation. To make the data on this slide meaningful, clarity and context are paramount. Succinctly outline key competitors strengths and weaknesses, and how the business distinguishes itself in the space. Visual elements, such as a competitive matrix or diagram, can enhance understanding. Investors want to understand you know your competition or the competing ways in which customers / clients can spend their money. They want you showcase a nuanced understanding of the competitive landscape, demonstrating commercial acumen, industry knowledge and the strategic thinking behind your positioning. It's not just about highlighting competitors; it's about demonstrating how the business stands out and can capture market share. In essence, a well-crafted competition slide provides investors with a comprehensive view of the competitive dynamics, aiding them in assessing the business's potential for success and growth.
7) Product:
The product slide in a pitch deck holds immense significance for investors as it unveils the heart of the business—the solution. However, it's crucial to strike a balance, especially when pitching to a diverse audience. While investors seek a clear understanding of the product's uniqueness and functionality, it's equally important not to drown them in technical intricacies. A compelling product slide should convey the essence of the solution in a straightforward manner, focusing on its value proposition and how it addresses the identified problem. Avoiding unnecessary technical jargon ensures that even general investors can grasp the product's significance, fostering broader engagement and interest. Ultimately, the product slide serves as a visual gateway for investors to envision the business's offering without being overwhelmed by unnecessary technical details.
8) Market Validation:
The market validation slide in a pre-seed pitch deck is a pivotal juncture that holds substantial weight in the eyes of investors. Its placement reflects a crucial point in the narrative where the entrepreneur showcases signals of effective market engagement. For investors, this slide serves as a litmus test, providing tangible evidence that the value proposition resonates with the target audience. Effective market validation not only substantiates the business's relevance but also amplifies its potential market size. From an investor's perspective, strong signals of market engagement elevate the proposition beyond theory, instilling confidence in the venture's ability to capture and retain customer interest. Linking market validation to competition and differentiation underscores the uniqueness of the business in a crowded landscape, further influencing investment decisions. In the hierarchy of investor priorities for a pre-seed opportunity, a compelling market validation slide can be a deciding factor, solidifying the business's appeal and potential for growth.
9) Business Model:
The business model slide in a pitch deck is a linchpin for investors seeking clarity on how a venture will translate its value proposition into sustainable revenue. A strong and transparent depiction of how the business plans to make money is paramount for investor confidence. From an investor's perspective, familiarity with well-known and established business models adds a layer of reassurance. Clear articulation of revenue streams, customer acquisition and retention strategies, and a path to profitability not only demonstrates the entrepreneur's strategic thinking but also aligns with investor preferences for tried-and-tested models. Investors are drawn to ventures that not only present innovative solutions but also showcase a sound and viable approach to monetization, laying the foundation for a mutually beneficial investment journey.
The pitfalls of a novel, undefined, or costly customer acquisition business model can be substantial for a startup. A lack of clarity on how to efficiently acquire customers can lead to excessive spending without tangible returns. Investors may view such uncertainty as a red flag, as it hampers the predictability of revenue generation and raises concerns about the sustainability of the business. A well-defined and cost-effective customer acquisition strategy is essential for investor confidence, emphasizing the need for startups to carefully navigate and articulate this aspect to avoid potential pitfalls in their business model.
10) Go-To-Market Strategy:
The go-to-market (GTM) strategy in a pitch deck is a focal point that delineates the path from product development to market penetration and early traction. An effective GTM strategy not only demonstrates a keen understanding of target audiences and channels but also underscores the scalability and sustainability of the business. Investors seek clarity on how the product or service will reach customers, create value, and outpace competitors. To make the GTM strategy compelling, entrepreneurs should prioritize concise articulation, emphasizing key milestones, strategic partnerships, and a clear customer acquisition plan. The GTM strategy serves as a litmus test for a startup's readiness to navigate the market landscape, influencing investor confidence and the overall appeal of the investment opportunity.
11) Financials:
From an investor's standpoint, the financial slide in a pre-seed pitch deck plays a pivotal role despite the speculative nature of the figures, particularly when the business is pre-revenue or pre-product. While acknowledging the inherent uncertainties at this early stage, investors look for a sound logic and clear cost forecasts. It's about more than just numbers; it's about the entrepreneur's ability to articulate a comprehensive financial strategy. A well-crafted financial slide demonstrates an understanding of resource allocation, potential expenses, and a strategic plan for future funding needs instilling confidence in investors regarding the start up's financial acumen and preparedness for the journey ahead.
12) Roadmap:
This slide offers a visual narrative of the start-up's journey from inception to key milestones. When putting this slide together make sure it links elements like milestones, use of funds, and valuation. Investors want to see clear alignment between the proposed timeline, anticipated achievements, and the allocation of capital. A well-articulated roadmap provides understanding of how each funding round propels the start up toward key milestones and creates a value inflection point.
13) Team:
The team slide in a pitch deck assumes a critical role, particularly in the nuanced context of pre-seed funding where investor scrutiny is at its zenith. Far surpassing a mere roster of individuals, this slide holds substantial significance, securing a considerable share of investor attention. It goes beyond individual skills and experiences, encapsulating a harmonious blend of diverse talents strategically interwoven. What propels the team slide to paramount importance is not merely the collective sum of individual expertise but a shared commitment to addressing a significant problem, coupled with a profound comprehension of an expansive market opportunity. Being able to showcase a strong team doesn't merely secure investor trust; it acts as a magnetic force, attracting advisors, suppliers, partners, and potential team members alike fortifying the foundation for success and amplifying its universal appeal and potential for growth.
14. Traction
Nothing quite gets investors attraction like solid traction underpinned by a strong and very capable team. Providing tangible proof of early success and market validation, connecting seamlessly with other slides in the deck like the problem-solution dynamic, market potential, and the team's execution capabilities will build a deck that flows. The traction slide not only substantiates the viability of the business but also helps to weave a cohesive storyline throughout the pitch deck, enhancing its overall impact and resonance with potential investors. The traction slide, adorned with a rich tapestry of achievements, becomes a persuasive tool, instilling heightened confidence and elevating the allure of the investment opportunity. Investors view early wins as precursors to scalable success and nothing validates quite like successful market engagement.
Things to consider
What's your North Star?
In the dynamic trajectory of start-up fundraising, the evolution from a business angel round (pre-seed) to a seed round is marked by a fundamental shift in narrative emphasis. In the pre-seed stage, where market validation and product-market fit are elusive, the pitch deck places a heavy focus on articulating the visionary aspects of the business. The absence of concrete market validation necessitates a compelling story about the significance of the problem, the innovation behind the proposed solution, and, crucially, the prowess and obsession of the founding team in executing the vision.
For angel investors navigating the vibrant landscape of potential opportunities, a pre-seed pitch deck serves as a key tool in helping to guide investment decisions and deciding on which deals to pass on. Any emphasis on market validation is a strong signal, such as insightful market research, early feedback, competitors and early stage pilots will get you more investor attention.
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Investors are more than aware that financial metrics are guestimates, so a lot of scrutiny will be focused on the founding team, assessing not just their expertise but the passion that fuels their commitment to execution — recognize that for some angel investors investing in the dreamers can be as rewarding as investing in the dream itself. If you have skill gaps in your team then initially try and plug them through angels and advisors.
Financial projections, though speculative, become the backdrop against which many of the investors I speak with evaluate the how meticulous founders have planned the fund allocation and mapped out the trajectory towards crucial milestones, laying the foundation for subsequent funding rounds. Traction indicators will be scant at pre-seed but should be aware of what investors are looking for so try entice readers by evidencing promises of early partnerships, letters of intent, and actual feedback from potential customers (market engagement). For a good overview of key metrics to aim for read: https://www.linkedin.com/feed/update/urn:li:activity:7151856653103988736/
In the realm where data may be scarce, the pre-seed pitch deck should offer an enticing narrative, inviting investors into a story of market necessity, ingenious inception, and a team with the potential for exceptional success. The key, as always, lies in the artful tailoring of this narrative to align with the unique expectations and preferences of an astute investor.
Data insights on Investor Attention
Looking at tracking data from 2021 and 2022 on how long investors spend reviewing pitch decks it is clear that the trend shows investors are spending less time reviewing pitch decks than ever before. Between 2021 and 2022, four trends emerged in VC scrutiny of pitch decks. First, in 2022 VCs spent 52% less time on the product sections of successful decks. Second, they spent 42% less time on the business model section. These two trends mean that founders have less time than ever to make these all-important sections stand out. At the same time, the brief company purpose section was the third-most scrutinized section in 2022–this section was squarely in the middle of the pack in 2020 and 2021. Lastly, traction was a key factor differentiating unsuccessful decks: VCs spent 41% more time on this section in 2022 compared to 2021 for decks that didn’t receive funding.
Stick to The Script
In the realm of pitching, a clear and cohesive structure serves as the cornerstone of an impactful pitch deck. It is the roadmap that guides investors through the narrative, ensuring a logical flow of information and facilitating comprehension. Each section, from problem statement to solution and financial projections, finds its designated place, creating a seamless journey for the audience. A well-structured pitch deck not only enhances clarity but also showcases the entrepreneur's strategic thinking and attention to detail. It enables investors to easily navigate and absorb crucial information, making a compelling case for the business and ultimately increasing the likelihood of securing support. In the fast-paced world of fundraising, clarity in structure is the key to leaving a lasting and positive impression.
Data insights show the order of sections within decks are broadly similar for successful and unsuccessful companies. Where both groups had a certain section, that section was roughly in the same place. However, research highlights that successful decks tended to have their business model and fundraising goals sections at the end of the deck, whereas unsuccessful companies put them at the beginning and middle, respectively.
Tailoring for the Audience:
Recognize preferences in pitch deck styles. For instance, sector agnostic general investors will prefer less technical detail whilst domain specialists who understand the space will prefer more detail longer decks..
Tell a Captivating Story:
Stand out from the crowd by crafting a narrative that resonates emotionally. Investors are bombarded with pitches, so make yours memorable with a compelling story conveying drive and ambition.
The power of storytelling in a pitch deck lies in its ability to transform facts and figures into a compelling narrative that resonates with investors. Beyond the data, a well-crafted story engages emotions, creating a memorable and relatable experience. It humanizes the business, allowing investors to connect with the mission, the challenges overcome, and the vision for the future. A compelling story not only captures attention but also enhances understanding, making the pitch more persuasive and leaving a lasting impact that goes beyond mere numbers. In the competitive landscape of pitches, storytelling becomes the secret weapon, turning a presentation into a mission that investors want to be a part of.
Keep It Short and Simple:
In the art of pitch deck creation, brevity is a superpower, and nowhere is this more evident than in nailing the value proposition. Being succinct with wording in your pitch deck is akin to distilling the essence of your business into a potent elixir that captures investor attention. A concise value proposition communicates the core benefits and unique selling points with clarity, leaving an indelible mark on the investor's mind. In a world inundated with information, brevity not only respects the limited time investors have but also demonstrates a profound understanding of your business. Every word becomes a strategic choice, contributing to a powerful narrative that resonates and sets the stage for a compelling pitch.
Design Matters—Yes, That Means the Font:
The pitch deck and initial outreach will often be the first contact point with your company. So understand what good looks like by reviewing other decks and speaking to other founders and asking them to share their deck / design tips.
A pitch deck with a simple visual design offers several advantages in effectively conveying your message to potential investors. Simplicity minimizes distractions, ensuring that your key messages are clear and easily digestible, allowing investors to focus on the content and increasing the likelihood that your message resonates. A clean design aids in quick comprehension, reducing the cognitive load on the audience, and reflects professionalism and attention to detail, instilling confidence in investors. A simple design promotes consistency throughout the pitch deck, enhancing overall presentation aesthetics and reinforcing a unified brand image. Notably, simple designs are more accessible to a broader audience, making your pitch more comprehensible to investors with varying levels of expertise.
Simplicity contributes to memorability, aiding investors in recalling key points and details. Given the time constraints of investors, a straightforward design streamlines the reviewing process, allowing for quick extraction of essential information. Simple designs are adaptable to various presentation formats, ensuring effectiveness in different settings, whether in-person, virtual, or as a standalone document.
By avoiding overly elaborate visuals, attention is directed to the content, emphasizing the value proposition, market opportunity, and team. Furthermore, a simple design is mobile-friendly, ensuring readability across different devices. In summary, a simple visual design in a pitch deck enhances clarity, professionalism, and memorability, making it more likely to leave a positive and lasting impression on potential investors. Choose standard, legible fonts and avoid non-standard fonts that might hinder readability. Helvetica is a reliable choice; clarity takes precedence over unnecessary embellishments.
Practice and Prepare For Pitching:
The pitch deck is not just a document; it's a performance. Practice your presentation thoroughly, ensuring you can speak to each slide confidently, without relying on notes. You often will not know the space your pitching in ahead of time so you need to know your pitch inside out.
Practicing and refining your investment pitch is paramount to success in the competitive arena of fundraising. Like any performance, delivering a compelling pitch requires not just knowledge but also finesse. Through practice, you hone your delivery, fine-tune your messaging, and become intimately familiar with your material. This iterative process allows you to anticipate and address potential questions or concerns from investors, ensuring you are well-prepared for the Q&A session which is the much more challenging aspect of your pitch.
If presenting on screen you don't want to be looking down at your notes, so if you need notes when pitching virtually put them at camera height. Use good lighting too it makes a big difference. Refining your pitch over time allows you to capture the essence of your business concisely, making it more memorable and impactful. Each practice session is an opportunity to enhance clarity, confidence, and ultimately, increase the likelihood of securing the support your venture needs. In the dynamic world of investment, preparation is the linchpin to making a lasting impression and securing the backing your vision deserves.
What Slides To Include:
Which slides you choose to include in your pitch deck is your choice but ultimately it should include some of the above if you are raising a pre-seed round and for short pitches (<5 mins) you will have to use fewer slides Include an appendix for additional slides during the Q&A session so you can drill into the detail when needed.
Pre-seed decks hinge on building investor confidence in the team's capabilities and the vision. The presentation acts as a tool to demonstrate that the product or service has resonated with the target audience reducing perceived risks for investors highlighting a more credible investment opportunity worthy of further exploration.
Treat your pitch deck as a "living document." Seek feedback, refine based on responses, and tailor it for different scenarios or audiences. There is no one sized deck that fits all, like a CV it changes at every contact point: it depends on the type of investment, kind of investor (general vs specialist), stage of conversation, teaser v full deck etc. Having a complete master deck which you can slice and dice is a good way to go allowing you to quickly build a tailor made deck that delivers the right information to the right audience rapidly.
Focus on using a smarter playbook:
Pitching makes up a very small part of your fund raise, most of the time is research and preparation. Targeting more investors can yield a greater number of meetings, but data shows highlights successful founders raised their pre-seed round by contacting 80 or fewer investors. There appears to be a weaker correlation between the number of investors contacted and the amount of funding raised. Founders should focus on building relationships with the right investors who fund companies in their space instead of creating time-consuming outreach plans.
Remember, investors have limited time so use your time with them wisely. Understand their motivations – seeking great teams, addressing super painful problems with an order of magnitude better solutions, huge market opportunities with realisable long-term returns and evidence of market engagement. 🌟 #StartupPitching #PreSeedJourney #InvestorConnection #fundraising #founders #preseed #equityinvestment #pitchdeck #investmentdeck #raising investment
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