How To Create a Venture Capital Pitch Deck

When working to get VC funding, all great companies start by creating a venture capital pitch deck. A pitch deck is a presentation that entrepreneurs give to potential investors in order to raise funding for their business. Most pitch decks include numerous elements that investors will want to see before they decide whether or not to give you the money you’re asking for. The goal is to give them a clear and concise vision and overview of your business so that they can see the potential and decide that you’re worth investing in.

Creating the perfect VC pitch deck can be a daunting task, but we’re here to help. In this article, we’ll go over what to include in your pitch deck and some tips for how to effectively present your deck.

 

What is a VC Pitch Deck?

A VC pitch deck is simply a presentation that entrepreneurs use to pitch their business to venture capitalists. The goal of the pitch deck is to get potential investors interested in your company and to convince them to give you the funding you need. So, your aim should be to highlight the key points about your venture and to expertly answer all of the questions asked, while getting the venture capitalist excited about your business concept. They are a necessary element if you want to secure venture capital funding.

It is important to keep your presentation brief and to the point. The partner with whom you are likely to meet sits through several presentations a day, and will probably not be able to keep up with many of the details in the 20 to 30 minutes that he has allocated to you. Ideally, you will want to include the following points in your presentation:

1. What does your company do?
2. What is the status of your company?
3. What are the key points that make your company unique?
4. What pain point does your solution solve?
5. In what market(s) are you competing?
6. How do you generate revenues?
7. What is the competitive landscape?
8. Who is on your management team?
9. What is your timeline/roll-out plan/milestones?
10. How much capital are you seeking?

Remember that you are trying to gain the VC’s interest in your company. Your initial meeting is not the time to try and close the deal. If the VC is interested, he will invite you back for further presentations with his business partners.

While the best pitch deck examples can take many different forms, there are certain elements that should be included in every one. We’ll go over those in more detail below.

 

Critical Aspects of a VC Pitch Deck

All pitch decks are going to be different, but there are some key elements that should be included in every one. These elements give investors the information they need to make a decision about whether or not to invest in your company.

The following are some of the most important things to include in an investor pitch deck:

First Slide: Company Overview, Purpose, And Value Proposition

The first thing you’ll want to include in your pitch decks are high-level overviews of your company. These pitch decks should include information about what your company does, the company purpose, and your competitive edge. You’ll also want to include a clear value proposition, that is, what benefit do you offer to customers?

Second Slide: The Target Market’s Problem

The next thing you’ll want to include in your pitch deck is a description of the problem that your company is solving. This is important because investors need to see that there is a market for your product or service and that people are actually willing to pay for it.

Third Slide: Your Business’s Solution Slide

After you’ve described the problem, you’ll want to provide a solution. This is where you’ll describe your product or service in more detail and how it solves the problem that you’ve described. Providing investors with a detailed solution slide is one of the most important parts of pitch decks as it allows them to understand why they want to invest in your company.

Fourth Slide: Market Opportunity

After you’ve explained your product or service, you’ll want to provide some data about the total addressable market potential for your business. This includes information like the market size, the growth rate, and the demographics of your target customer.

Fifth Slide: Competition

No business exists in a vacuum, so you’ll also need to talk about who your competition is. This includes both direct and indirect competitors. For each competitor, you’ll want to provide information about their market share, their strengths, and their weaknesses.

Sixth Slide: Business Plan & Model

Your venture capital pitch deck should also include information about your business model (how you will generate revenue) and business plan (future roadmap detailing your growth strategy and how it will be achieved).

Seventh Slide: The Team Slide

Investors will also want to know who is on your team. This should include information about the experience and qualifications of each team member. A solid team gives investors more confidence that your company will be successful.

Eighth Slide: Financial Projections And Other Key Metrics

Finally, your pitch deck should include detailed financial projections like your projected revenue growth, your burn rate, and your milestones. You’ll also want to include other key metrics like your churn rate, customer acquisition costs, and lifetime value.

 

8 Tips For Creating a Great Pitch Deck

Now that you know the essential elements of a pitch deck, let’s go over some tips for making yours great.

1. Know Your Why

First and foremost, you need to know your why. That is, what is your motivation for starting this business? This will not only help you create a pitch that is more authentic, but it will also help you stay focused on your goals.

2. Determine Your Funding Goals

Before you start creating your slide deck, you need to determine how much money you’re looking to raise. This will help you focus on the information that is most important to investors.

3. Focus On Your Company’s Strengths

When you’re creating your pitch, it’s important to focus on your company’s strengths. This includes your unique value proposition, your team, and a clear business model.

4. Balance Storytelling With Data

A great pitch deck tells a story that is both compelling and informative. To do this, you’ll need to balance storytelling with data. That is, don’t just include a bunch of facts and figures, but also use them to paint a picture of your company’s potential.

5. Rely On Compelling Visuals

A good pitch deck is not a novel, so don’t try to write one. Instead, rely on visuals like charts, graphs, and infographics to tell your company’s story.

6. Be Concise

Remember, you only have a limited amount of time to make your pitch, so you need to be concise. This means including only the most important information and leaving out anything that is unnecessary.

7. Include Backup Slides

Always include backup slides in your VC deck. These are slides that you can use if you run out of time or if investors have questions about specific topics.

8. Practice Your Pitch

Finally, make sure to practice your pitch before you actually give it. This will help you ensure that you are delivering it in the most effective way possible.

Overselling your company is a common mistake that entrepreneurs often make in their initial presentations. According to venture capitalist Guy Kawasaki, many entrepreneurs claim to have a “proven management team” and “proven business model” with “patent-pending technology” while enjoying a “first-mover advantage.” He goes on to comment that those entrepreneurs using the above terms are essentially lying. “Oh god, it gives me a migraine just thinking about those things.”

Instead, the you should focus on the needs of the venture capitalists, which is primarily to make money. Show the VC how your startup idea will make him money, and back up your assertions with primary or secondary data.

Moreover, you should be ready to handle any of the venture capitalists’ questions regarding your business. Be extremely familiar with your financial model, and have a detailed venture capital business plan for how you plan to grow a profitable business in the long run. Know why you need venture money, and what you plan to spend it on. Be passionate, and have the ability to display and communicate every last detail of your venture.