This article is contributed by the founder & CEO of PitchKrafts, Mr. Aayush Sachdeva. He is is a driven professional who has supported numerous investment bankers, consultants, founders, and company owners in generating important fundraising collateral.
The thought of presenting an idea to a potential investor could take on anyone’s nerves. Even if an entrepreneur has creativity, business sense, and a great business idea in hand, a lot can go wrong if not organized properly. Pitching an idea to someone is not easy for everyone, but it can add to your strength if you are an entrepreneur. In the digital era, there are endless opportunities to present your idea to investors to realize your ideas. The goal of pitching an idea to a potential investor is to convince them to put their money, time, or effort into it. This is where the art of delegation and pitching needs to go hand in hand.
A proper presentation to a potential investor is an art and everyone is not aware of this fact. It is challenging for Startups at an early stage to reach out to a potential investor and get funding. The process of perfecting a pitch deck, identifying the key investors consumes a lot of time. A startup wins half of the battle if the pitch deck they create for a potential investor hits the right keynote. A pitch deck not only gets entrepreneurs the much-needed capital but also the support, strategy, network, and more. It is the most important aesthetic in the fund-raising ecosystem.
With an inadequate pitching style and documentations, on many occasions, startup founders often fail in front of potential investors. A well-prepared Pitch deck helps to talk about the business idea, market, and customer. It also tells a story, challenges, and tension in the market. There are plenty of companies, PitchKrafts, Canva, Adobe that help startups to prepare the pitch decks to present their ideas in front of investors in an effective way. They provide all the essential data including market forecasts, financial projections, etc to help investors to understand better your ideas.
Pitch deck proves an essential document to put an impression in front of the VCs. So, it becomes important to identify what goes into the pitch deck. It should not sound verbose. It should emphasize the startups' market, consumer, and revenue numbers, among others.
A pitch deck helps a potential investor to understand and learn more about the company. It should help to learn four key elements of the business opportunity, which forms the outline of the pitch deck:
1. Product: A product overview should answer the critical questions. Such as 'What are the unmet demands our product is fulfilling?' and 'How different is your product or service different from the existing competitors'. A good pitch deck should highlight these two questions for a better understanding of VCs. Further, A graph or simple table easily proves effective in understanding the data.
2. Market: A pitch deck has to address the market size penetration, strategy and if any, the market traction of the company. You may lose credibility if it becomes evident that the real market addressable by your product is smaller than the total market size you have claimed. It is hard to get customers for most businesses. So, any potential investor would want to understand the plan to make that happen and the cost budgeted to achieve the targeted market penetration. Customer testimonials are one of the most compelling things to have in a pitch deck. Market survey results help to understand the feedback from the target audience.
3. People: Potential investors only invest and trust in the businesses if they have confidence and trust in the management team. To maximize the chances, a pitch deck must explain the key roles of the current employees and why they are fit for their roles. Including pictures and brief bios of the people can make it easy to know about the company's potential. It's better to add specific skill sets and achievements and highlight those.
The CEO is the most critical to the company's success. By convincing investors about the potential of your CEO, you can land towards successful fundraising.
4. Money: A pitch deck must cover the information related to fund spending. A summary of financial projections or the amount of capital currently raising or the milestones you plan to achieve with it. It should also mention the projected investors' return.
Additionally, presenting the high-end results of the financial model, it must explain the basic business model of the company. How is revenue generated? What are the major cost drivers? Are you acquiring paid or unpaid content? It is advisable to highlight the current raise and use projected proceeds. A pitch deck should include the returns that investors are projected to receive on their investment if the plan is implemented.
There is no perfect pitch deck that fits all the potential investors. With the mushrooming startups, Every investor has their unique way of looking at the opportunity. A pitch deck should address every possible question that anyone might ask. It should be short and crisp and explain your ideas. Let the investors ask to explain the points so you can better explain your ideas.
It becomes important to consider these points to present your ideas effectively and attract an investor with a fund-worthy pitch deck for your business with all necessary research documents, achievements, and attractive designs. Considering these points would lead you to higher chances of convincing an investor and landing an investment.
About the Author
Mr. Aayush Sachdeva, Founder & CEO of PitchKrafts is a driven professional who has supported numerous investment bankers, consultants, founders, and company owners in generating important fundraising collateral. He continues to assist startups and other new business models in receiving numerous rounds of funding and finding additional possible investors with all of the insightful information he has accumulated over the years.
Aayush's ability to create and place the initial communication tool between entrepreneurs and investors has always given premature companies a strong opportunity to have a financial forecast and run a profitable firm. He continues to succeed and dominate the pitching routine, owing to his extensive expertise in generating Pitch Decks, Financial Modeling & Forecasting, Business Planning, and Valuations.
He is a powerful networker; he and his team have established partnerships with HNIs, VCs, and Angel Investors all around the world, instilling PitchKrafts into the ecosystem with a stronghold through creating close relationships and providing quality. He has guided businesses through their financing path by creating collateral that not only impresses but also imprints in the minds of investors, increasing their chances of acquiring the funds they require.