Your investor deck is probably the single most important document you will have as part of your fundraising efforts. This deck should answer all the basic business questions that an investor will have, such as what your business model is, what problem you are trying to solve and how big your market is.
The key to building an effective investor deck is to make it compelling. Investors are inundated with hundreds, if not thousands, of investor decks each year, so your deck really needs to make them stand up and take notice. You want this deck to get the investor so excited about the potential for them to make lots of money, they can’t wait to invest in your business.
Your investor deck, sometimes called a pitch deck, plays multiple roles during your funding process.
- Send out to interested investors as a way of introducing your company to them.
- Once you book a meeting, this can be used for your initial pitch to them.
- Upload on fundraising sites like GUST.com and Proseeder.com as part of your overall profile.
- Use on equity crowdfunding sites, such as Startengine.com and Wefunder.com.
Outline of Your Investor Pitch Deck (Slide-by-Slide)
Here is the good news. There is a standard format that most all investors expect to see in your pitch. Follow this outline and you can’t go wrong. Your investor pitch deck should be between 10-12 slides.
If you want more information on each slide including a presentation template, video explanation and example investor deck, download our new eBook NOW!
Vision & Company Purpose Slide
Your company Vision is a declarative statement that defines what your company is all about. This statement is intended to guide, direct, motivate, and inspire everyone in your business. Since a Vision Statement represents your dream for your business, it should be far-reaching and aspirational.
Problem Statement Slide
The Problem Statement gives you a chance to define what problem your product or service is solving. You need to describe the pain point of your customer; the key to your business’s success is finding a problem and solving it.
Solution Statement Slide
How does your product or service solve a pain point or address the needs and wants of your customer? That is what you want to focus on when talking about the Solution Statement. Make sure you are specifically addressing the issues that you outlined in your problem statement.
Target Market Slide
Investors want to know that you have defined a Target Market for your business, and that you are not targeting everybody in the universe. Defining your Target Market as “everyone” does not work, and investors know it. The investor is looking for you to have a Market that is big enough but also narrow enough to create real value for a specific Target Market.
Market Size Slide
Investors want to know that the market you are serving is big enough to eventually support a big business as your company grows. Even more importantly, investors care about being able to make a return on their investment. Always remember that your market must be big enough for investors to eventually make a nice return, that is what is going to get them excited!
Competition Slide (Competitive Matrix)
All investors are looking to see how competitive your Market really is. They want to see that there is a healthy amount of competition, because it means you don’t have to establish the market from scratch. The best way to present your competition is via a competitive matrix (see below) which shows how you are positioned against your competition on the two most important attributes of your business. On the matrix, always remember you need to be positioned up and to the right.
Product or Service
This section of the Investor Pitch gives you a chance to tell investors exactly what your product or service is, and likely the part that you are going to be most excited about!
Business Model Slide
Investors must clearly understand how your company is going to make money, and that is exactly what you will show them using your business model.
Understand that investors are investing in both you and the team, so really spend some time in this section, do not just pass by it. Here, you should present the founders, including yourself, co-founders if you have them, the management team, board members, and advisors.
Financial Slide (P&L Statement)
Including financials can be tricky. Investors love seeing financials, but you may not want to send your financial model out to random investors, or investors you do not know very well. To combat this, it’s a great idea to have two decks: one with financials and one without. Then, you can later decide based on who you are sending it to whether they are going to get the financials or not.
Use of Funds Slide
It is always a good idea to have your Use of Funds prepared even if you do not include it in the base deck. This is a simple slide that includes just two things: How much are you going to raise, and how are you going to use the funds?
Investors expect to see the slides outlined above but you do have some flexibility to add or delete a slide if needed. For example, some entrepreneurs need 2-3 slides to explain their product offering.
Download my free eBook called Create a Compelling Investor Pitch Deck. This eBook will give you much more detail on each slide including an example for each, a presentation template and example pitch deck.