60% of entrepreneurs spend more than 20 hours preparing their pitch. But, did you know that only 1% of pitch decks succeed in acquiring funds? So let's get it right.
Download our pitch deck template to prepare your startup for the next round.
Pitching Basics
When should I pitch?
Build before you pitch. Already back in 2010, Mark Suster, managing partner at Upfront Ventures, stated: “[Investors] invest in lines, not dots”. Essentially, what he means is that investors are looking for constant progress and not peaks. They want to see that your startup has been and is evolving, showing that is in the direction of success and seeing growth. When you pitch, you should have your MVP or proof of concept ready.
How long should my pitch be?
How long your pitch is depends on which occasion you present it. Typically, tech startup pitches last around ten minutes. Consider that investors get to hear a lot of pitches in their daily business, so make sure you catch their attention from the beginning. If you know exactly who will be your audience, do a bit of research on your potential investors to tailor the content.
How many details should I provide?
Keep it simple to not lose anyone on the way. Even people who don't have knowledge in your field should be able to understand your product. Communicate what makes your product and company stand out from others. Those who are experts will ask you specific questions you should be prepared to answer. Also, be ready to follow up: Have additional materials, references, or data on hand if potential investors or stakeholders want a deeper dive.
How long should my pitch deck be?
VCs don't have time to lose, so a concise pitch deck shouldn't include unnecessary information. On average, investors spend 3 minutes and 44 seconds on a pitch deck. Try to narrow down the most important points on 10 to 12 slides with 20 to 25 words each. If a piece of information or page doesn't have a purpose, don't include it.
How important is the design of my pitch deck?
94% of first impressions are design-driven. Stick to a professional yet dynamic style in line with your brand identity. Your title slide is the gateway to your presentation. Investors typically spend 7 seconds looking at it, so make the most out of it.
Be consistent in using your brand colors. Also, add personality to your texts—describing headers like “The problem” won't spark your audience's interest.
What does a successful tech startup pitch deck include?
Business statement
Describe what your company is about in one sentence: Breaking it down to one phrase forces you to be on point. Also, include your tech startup's logo, your tagline, and your elevator pitch. We know that nailing down your business to a one-liner can be tough; in case you need inspiration, you can use our free brand strategy tool that will help you get your elevator pitch in the blink of an eye.
For example: [Startup name]'s internal workforce insights together with external benchmarks empower professionals to make informed decisions and drive meaningful change within their organizations.
Problem statement
Make the best use of this part, as it is one of your strongest arguments. You might structure it the following way:
- Proof of problem, including data or real-life examples
- Existing solutions and their limitations, underscoring the need for a better approach
Solution
You have outlined the problem and the state-of-art. Make the transition to your winning solution smoothly. Take up the pain points of the previous slide and tackle each and every one, presenting a better approach covering all of them. You gain sophistication by finetuning and interlacing these slides on a visual level.
Product
Clear the stage: Now it is time to present your product. Whether you are a SaaS, Fintech, HR tech, Proptech, or Cleantech startup, make sure to present the benefits and functionalities of your solution compellingly.
If you already have a working product, include screenshots or even videos; if not, you could draw on simplified UI screens to give an idea of the functionality.
Also, emphasize the scalability of your solutions, meaning that the problem is not too niche and that there is room for business growth.
Target market
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Visualize your data to catch attention and avoid filling your slide with text. Define the total addressable market (TAM), the serviceable available market (SAM)—the portion of the market you can acquire based on your business model—and the serviceable obtainable market (SOM), which is the one you realistically will be able to reach. You can also predict how your target audience will evolve and how many users you will get.
Competitors
One of the most common ways to communicate your key differentiator(s) is a comparative table with your competitors, including their features as well as yours. This is a concise but effective way to highlight your value proposition and should also be part of your brand strategy. If you lean towards a more visual approach, you could also include a positioning map with X- and Y-axes. Although this graphic will be easier to grasp, keep in mind that the information will be provided more superficially.
In case you are struggling with your brand strategy, maybe our Brand Strategy Toolkit will help you. It guides you through the process of developing a solid brand strategy, including your positioning map.
Business model
Together with the Solution slide, the Business model slide is the one that investors spend the most time looking at: namely between 45 and 50 seconds*. So, make full use of every second. You might also add an overview of any partnerships or strategic alliances.
Traction & roadmap
While early-stage startups might not have significant traction, they still need to present compelling metrics, whether it is user engagement, pilot results, or other KPIs. Include the milestones you have already achieved and the forthcoming ones. You could include significant points in your solution's lifecycle, such as alpha or beta launches, major feature releases, and more.
Marketing & sales strategy
Especially for SaaS startups targeting large enterprises, the sales cycle can be long and unpredictable. This can be a concern for investors who want to see quick growth.
Therefore, you need to promote a clear strategy, with actionable steps on the marketing and sales level.
Outline how you plan to tackle customer churn rates or other obstacles that might arise. Don't forget about your marketing and brand experience: communicate the changes you want to realize in your visual identity or marketing initiatives.
Team
Investors don't just invest in ideas; they invest in people.
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Highlight the key members of your team, their expertise, and why they're the right people to solve this problem to gain the trust of investors. While most slides of tech startup pitch decks vary, the Team slide is prominent in 100% of successful startup pitch decks.* You can also include logos of the companies your team members have worked for.
Financials
More numbers: Investors are interested in your company’s financial health for the last 3-5 years along with details of the business model and finances. Present the sales forecast, total expenses, income statement and cash flow forecast. Although for a SaaS service, for instance, it is difficult to predict its subscription rate, VCs love predictability. Hence, include a steady and growing Monthly Recurring Revenue (MRR) or Annual Recurring Revenue (ARR) to gain investor confidence if possible.
Use of funding
Provide an overview of how you are planning to spend the funding. Make sure to cover all points, ranging from infrastructure to workforce and sales and marketing spending.
Download our Pitch Deck Template and create a pitch desk with a clear structure that includes everything investors are looking out for. With an easily adjustable layout and useful tips, it helps you turn your next pitch into a success.
Sources:
Docsend
Techcrunch
Failory
Saastitute
Pitch Deck Creators
Christian Peverelli via YouTube
Mark Suster via Medium
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