Pitch deck: How to create a pitch deck that attracts pre seed investors

1. The Importance of a Compelling Pitch Deck

1. The Purpose of a Pitch Deck:

- A pitch deck serves as your business's visual narrative. It encapsulates your vision, value proposition, and growth potential in a concise format.

- Investors, especially pre-seed investors, receive numerous pitch decks daily. Yours must stand out to capture their attention.

- Think of your pitch deck as a movie trailer—compelling, intriguing, and leaving the audience wanting more.

2. The Art of Storytelling:

- A pitch deck is more than bullet points and graphs. It's a story that resonates with your audience.

- Start with a captivating opening. Share your "aha" moment—the spark that ignited your venture.

- Example: "Picture this: You're stuck in traffic, frustrated by inefficient public transportation. That's when the idea for our urban mobility app was born."

3. The Essential Slides:

- Problem Statement: Clearly define the problem your product or service solves. Use relatable scenarios.

- Example: "Over 70% of small businesses struggle with inventory management inefficiencies, leading to lost revenue."

- Solution: Present your solution succinctly. Highlight its uniqueness.

- Example: "Our AI-powered inventory optimization platform reduces waste by 30% and boosts profits."

- Market Opportunity: Quantify the market size and growth potential.

- Example: "The global inventory management software market is projected to reach $5 billion by 2025."

- Business Model: Explain how you generate revenue.

- Example: "We offer a subscription-based model with tiered pricing for businesses of all sizes."

4. Visuals Matter:

- Use high-quality images, charts, and infographics. Visuals reinforce your message.

- Show a mockup of your product, a growth trajectory graph, or a customer journey map.

- Example: Display a side-by-side comparison of manual inventory management vs. Your automated solution.

5. The Team Slide:

- Investors invest in people. Introduce your core team.

- Highlight their expertise, relevant experience, and passion.

- Example: "Meet our CTO, Jane, an MIT graduate with a background in supply chain optimization."

6. Traction and Milestones:

- Share your progress. Investors want to see traction.

- Mention key milestones—pilots, partnerships, user acquisition.

- Example: "We've onboarded 20 pilot clients, secured a strategic partnership with XYZ Corp, and achieved 10,000 app downloads."

7. The Ask:

- Be transparent about your funding needs.

- Specify how much capital you're seeking and how you'll use it.

- Example: "We're raising $500,000 to scale our sales team, enhance our app's features, and expand to new markets."

Remember, a compelling pitch deck isn't about overwhelming investors with data; it's about sparking curiosity and leaving them eager to learn more. Craft your deck with care, rehearse your delivery, and ignite the investor's imagination.

2. Pre-Seed Investors

1. Investor Mindset and Priorities:

- Risk Appetite: Pre-seed investors are risk-takers. They understand that startups are inherently risky but offer high growth potential. They seek out innovative ideas and founders who can execute them.

- Portfolio Diversification: Pre-seed investors often build a diversified portfolio. They allocate smaller amounts to multiple startups, hoping that a few will become unicorns. As a founder, you need to demonstrate how your startup fits into their overall investment strategy.

- Exit Strategy: Investors want to know how they'll eventually exit their investment. Highlight potential exit routes, such as acquisition or IPO, and explain how your startup aligns with these options.

2. Market Insights:

- Market Size and Growth: Investors want to see a large addressable market. Provide data on market size, growth rates, and trends. For example, "Our SaaS product targets the $50 billion global CRM market, which is growing at 15% annually."

- Customer Segmentation: Understand your customer segments. Investors appreciate granularity. For instance, "We're targeting mid-sized e-commerce businesses struggling with inventory management."

3. problem-Solution fit:

- Pain Points: Clearly articulate the pain points your solution addresses. Investors want to know why customers will pay for your product. "Our AI-powered chatbot reduces customer service response time by 50%, solving a critical pain point."

- Unique Value Proposition (UVP): Explain what sets your solution apart. "Unlike existing tools, our UVP lies in real-time sentiment analysis, leading to better customer interactions."

4. Traction and Milestones:

- Early Traction: Investors look for signs of validation. Share metrics like active users, revenue, or partnerships. "We've onboarded 10 paying customers in the last month."

- Milestones: Outline your roadmap. "By Q3, we aim to launch version 2.0 and secure a strategic partnership."

5. Team Dynamics:

- Founders' Background: Investors assess the team's expertise. Highlight relevant experiences. "Our CTO previously led tech teams at Google."

- Complementary Skills: Showcase how team members complement each other. "Our COO has deep industry connections, while our CFO brings financial acumen."

6. Financial Projections:

- Realistic Projections: investors want to see growth potential but dislike overly optimistic projections. "We project 20% MoM revenue growth for the first year."

- Burn Rate: Be transparent about your burn rate. "With our current funding, we can operate for 18 months."

7. Exit Scenarios:

- Exit Timing: Discuss when investors can expect an exit. "We anticipate an acquisition within 3-5 years."

- Comparable Exits: Refer to similar startups that exited successfully. "Company X, with a similar product, was acquired by Y for $100 million."

Remember, pre-seed investors evaluate not only your startup but also you as a founder. Be authentic, passionate, and well-prepared during pitch meetings.

Example: Imagine pitching to a pre-seed investor named Alex. You say, "Alex, our team has a combined 20 years of industry experience. Our product addresses a pain point that affects 80% of small businesses. We've secured pilot partnerships with three local retailers, and our financial projections show a clear path to profitability."

By understanding your target audience, tailoring your pitch, and providing compelling evidence, you'll increase your chances of attracting pre-seed investment.

3. Crafting a Powerful Problem Statement

Crafting a Powerful Problem Statement is a crucial aspect of creating a pitch deck that attracts pre-seed investors. In this section, we will delve into the importance of a well-crafted problem statement and provide insights from various perspectives.

1. Clearly Define the Problem: A powerful problem statement begins by clearly defining the problem your product or service aims to solve. It should be concise, specific, and address a real pain point in the market. For example, instead of saying "There is a lack of productivity tools," you could say "Many professionals struggle with managing their time effectively, resulting in decreased productivity and missed deadlines."

2. Highlight the Market Need: It's essential to demonstrate the market need for your solution. Provide data, statistics, or industry reports that support the existence of the problem you are addressing. For instance, you could mention how a recent survey revealed that 80% of small businesses struggle with customer retention due to inefficient communication systems.

3. Showcase the Impact: Investors want to see the potential impact of your solution. Use examples or case studies to illustrate how your product or service can make a difference. For instance, you could share a success story of a company that implemented your solution and experienced a significant increase in customer satisfaction and revenue.

4. Address the Target Audience: Tailor your problem statement to resonate with your target audience. understand their pain points, challenges, and aspirations. By doing so, you can create a problem statement that speaks directly to their needs.

4. Highlighting Unique Value Proposition

Here's a detailed section on "Presenting Your Solution: Highlighting Unique Value Proposition" for the blog "Pitch deck: How to create a pitch deck that attracts pre-seed investors":

When it comes to presenting your solution in a pitch deck, it's crucial to highlight your unique value proposition. This is what sets your product or service apart from competitors and convinces investors that it's worth their attention and investment. To effectively convey your unique value proposition, consider the following insights:

1. Clearly define your target audience: Start by identifying your target audience and their pain points. Understand their needs, desires, and challenges to tailor your solution accordingly.

2. Showcase the problem: Present the problem your target audience is facing and emphasize its significance. Use real-life examples or statistics to illustrate the impact of the problem on potential customers.

3. Introduce your solution: Once the problem is established, introduce your solution as the answer to their pain points. Clearly explain how your product or service addresses the problem and provides a unique solution.

4. Highlight key features and benefits: Use a numbered list to outline the key features and benefits of your solution. This helps investors understand the value your product or service brings to the market. provide in-depth information about each feature, explaining how it solves the problem and adds value to the customer.

5. Share success stories or case studies: Include examples or case studies that demonstrate how your solution has already helped customers. Highlight the positive outcomes and showcase the tangible results achieved through your product or service.

6. Differentiate from competitors: Discuss how your solution stands out from competitors in the market. Highlight any unique features, technologies, or strategies that give you a competitive edge. Show investors why your solution is superior and more appealing to customers.

7. Address scalability and market potential: Investors are interested in the scalability and market potential of your solution. Discuss how your product or service can grow and capture a significant market share. Provide insights into the market size, growth projections, and your strategy for expansion.

Remember, presenting your solution effectively is crucial for attracting pre-seed investors. By highlighting your unique value proposition and providing in-depth information, you can showcase the potential of your product or service and convince investors of its worthiness.

5. Demonstrating Market Potential and Opportunity

Market Analysis: Demonstrating Market Potential and Opportunity

Market analysis is the cornerstone of any successful business venture. It involves a comprehensive examination of the market landscape, including its size, growth rate, trends, and competitive dynamics. By conducting a thorough market analysis, entrepreneurs can gain valuable insights that inform their business strategy and attract investor interest. Let's explore this topic from various angles:

1. understanding the Market landscape:

- Market Size and Growth: Begin by quantifying the total addressable market (TAM). Investors want to know the potential revenue opportunity. For instance, if you're launching a health tech startup, consider the global healthcare market, including telemedicine, wearables, and personalized health solutions.

- Segmentation: Break down the market into relevant segments (e.g., B2B vs. B2C, geographic regions, customer demographics). Highlight segments where your solution can make the most impact.

- Market Trends: Identify emerging trends, such as shifts toward sustainability, digital transformation, or the rise of subscription-based models. Investors appreciate forward-thinking entrepreneurs who align with these trends.

2. Competitor Analysis:

- Competitive Landscape: Map out your competitors. Who are the major players? What are their strengths and weaknesses? Investors want to see that you've done your homework.

- Unique Value Proposition (UVP): Highlight what sets your product or service apart. Perhaps your AI-powered chatbot for customer support is more efficient than existing solutions.

- Barriers to Entry: Discuss entry barriers (e.g., patents, network effects, regulatory compliance). Investors seek defensibility.

3. Customer Insights:

- Customer Personas: Create detailed customer profiles. Understand their pain points, preferences, and behaviors. For instance, if you're developing a language-learning app, consider different learner personas (students, professionals, travelers).

- Market Segmentation: Link customer personas to market segments. Show how your solution addresses specific needs.

- Early Feedback: Share feedback from pilot tests, surveys, or focus groups. Investors appreciate evidence of product-market fit.

4. Addressable Market vs. Served Market:

- Total Available Market (TAM): The entire market opportunity.

- Serviceable Available Market (SAM): The portion of TAM that your business can realistically target.

- Served Available Market (SAM): The subset of SAM that you've already captured or plan to capture.

5. market Entry strategy:

- Go-to-Market (GTM) Plan: Describe how you'll reach customers. Will you use direct sales, partnerships, or digital marketing?

- Pricing Strategy: Explain your pricing model. Consider freemium, subscription, or tiered pricing.

- Distribution Channels: Discuss channels like online platforms, retail stores, or affiliates.

6. Examples:

- Tesla: Tesla's market analysis highlighted the growing demand for electric vehicles (EVs) and the need for sustainable transportation. Their UVP—high-performance EVs with cutting-edge technology—captured investor attention.

- Slack: Slack's pitch deck emphasized the shift toward remote work and the need for efficient team communication. They showcased early adoption by tech companies and the potential to disrupt email communication.

Remember, market analysis isn't a static exercise. Continuously monitor the market, adapt your strategy, and refine your pitch as new data emerges. By demonstrating a deep understanding of the market and a clear path to success, you'll attract pre-seed investors who share your vision.

Feel free to expand on any of the points above or provide additional examples specific to your startup. If you need further assistance, just let me know!

6. Building a Strong Narrative

1. Understanding the Power of Narrative:

- Founder's Perspective: As a founder, you're not just pitching a product or service; you're sharing your journey, passion, and purpose. Investors want to connect with the person behind the idea. Your narrative should convey authenticity, vulnerability, and resilience.

- Investor's Perspective: Investors receive countless pitch decks. What sets yours apart? A compelling narrative resonates emotionally. It helps investors visualize the future and understand why your solution matters. They want to invest in stories that align with their values and aspirations.

2. Elements of an Engaging Narrative:

- Origin Story: Begin with the spark—the moment you realized there was a problem worth solving. For instance, consider the story of Airbnb founders Brian Chesky and Joe Gebbia, who started by renting out air mattresses in their apartment during a design conference. Their struggle and resourcefulness became part of Airbnb's lore.

- Conflict and Resolution: Every great story has conflict. Describe the challenges you faced—the market gaps, technical hurdles, or personal setbacks. Then reveal how your solution overcame these obstacles. Investors love a resilient protagonist.

- Character Development: Introduce key characters—your team, advisors, and early supporters. Highlight their expertise and commitment. Investors want to know they're backing a cohesive, capable team.

- Plot Twists: Surprise your audience. Maybe you pivoted, discovered an unexpected market, or achieved a breakthrough. Share these pivotal moments—they add depth and intrigue.

- Foreshadowing: Hint at the future. What's the grand vision? How does your startup fit into a larger narrative (e.g., disrupting an industry, solving a global challenge)? Investors want to invest in companies that are part of something bigger.

3. crafting Your Pitch deck Narrative:

- Opening Hook: Start with a compelling statement or question. For example: "Imagine a world where…" or "What if I told you…"

- Visual Storytelling: Use visuals (images, infographics) strategically. Show the problem, the solution, and the impact. Remember, a picture is worth a thousand words.

- User Stories: Share anecdotes of early users or customers. How did your solution transform their lives? Investors relate to real-world impact.

- Numbers with Context: Instead of just stating metrics (e.g., revenue growth), provide context. "Our revenue grew 300% in six months because…" or "We saved 10,000 hours for our clients by streamlining processes."

- Call to Action: End with a clear ask. What do you need from investors? Funding? Partnerships? Expertise?

4. Examples in Action:

- Tesla: Elon Musk's narrative isn't just about electric cars; it's about saving the planet. His vision extends beyond vehicles to sustainable energy and space exploration.

- Warby Parker: The eyewear company's narrative centers on affordability, social impact, and disrupting the traditional eyewear industry.

- Slack: Their origin story involves pivoting from a gaming company to a communication tool. Their narrative emphasizes productivity, collaboration, and simplicity.

Remember, a strong narrative isn't about embellishment—it's about clarity, emotional resonance, and alignment with your startup's mission. As you build your pitch deck, let your story shine through every slide.

7. Showcasing Growth Potential

In this section, we will delve into the importance of financial projections in creating a pitch deck that attracts pre-seed investors. Financial projections play a crucial role in demonstrating the growth potential of a business and providing investors with a clear understanding of its future prospects.

From the perspective of investors, financial projections serve as a roadmap for assessing the viability and profitability of a startup. These projections provide insights into the expected revenue, expenses, and profitability over a specific period, usually three to five years. By analyzing these projections, investors can evaluate the growth potential of the business and make informed investment decisions.

To effectively showcase growth potential, it is essential to present financial projections in a comprehensive and organized manner. One way to achieve this is by utilizing a numbered list format, which allows for a structured presentation of key information. Let's explore some important aspects to include in your financial projections:

1. Revenue Projections: Start by outlining your projected revenue streams. This can include revenue from product sales, subscriptions, licensing fees, or any other sources specific to your business model. Provide detailed information on the expected growth rate, pricing strategy, and market size to support your revenue projections.

2. Expense Breakdown: Next, break down your projected expenses into different categories such as marketing, research and development, operations, and overhead costs. This will give investors a clear understanding of how you plan to allocate resources and manage expenses as your business grows.

3. Profitability Analysis: Highlight the projected profitability of your business by calculating key financial metrics such as gross margin, operating margin, and net profit margin. This will demonstrate your ability to generate sustainable profits and achieve long-term success.

4. Cash Flow Projections: Presenting cash flow projections is crucial as it showcases the ability of your business to generate and manage cash. Include details on cash inflows from sales, investments, and financing activities, as well as cash outflows from expenses and investments. This will provide investors with insights into your cash management strategy and liquidity position.

5. Sensitivity Analysis: To address potential risks and uncertainties, consider conducting a sensitivity analysis. This involves assessing the impact of different scenarios on your financial projections, such as changes in market conditions, pricing, or costs. By demonstrating your preparedness for various outcomes, you can instill confidence in investors regarding your ability to adapt and thrive in different situations.

Remember, providing concrete examples throughout your financial projections can help illustrate your points and make them more relatable. Use real-world data, market research, and industry benchmarks to support your projections and make them more credible.

By incorporating these insights and presenting your financial projections in a clear, detailed, and well-supported manner, you can effectively showcase the growth potential of your business to pre-seed investors.

8. Highlighting Key Members and Advisors

1. Founders and Core Team: The Architects of Vision

- Your founding team is the bedrock of your startup. Investors want to know who's driving the ship and whether they possess the necessary skills, passion, and resilience. Highlight the following aspects:

- Background Diversity: Showcase the varied backgrounds of your founders. Perhaps one has deep technical expertise, while another excels in marketing or sales. This diversity ensures a holistic approach to problem-solving.

- Complementary Skills: Discuss how your team members complement each other. For instance:

- Example: "John, our CTO, brings 15 years of experience in AI research, while Sarah, our COO, has successfully scaled three startups."

- Shared Vision: Emphasize alignment on the company's mission and long-term goals. Investors want to see a united front.

- Resilience and Adaptability: share stories of overcoming challenges. Investors appreciate founders who can pivot when needed.

2. Advisors: The North Stars

- Advisors lend credibility and guidance. Their expertise can fill gaps in your team's knowledge. Consider the following:

- Industry Titans: If you have advisors with impressive track records, highlight them. For instance:

- Example: "Dr. Emily Chen, former VP at BigTech Corp, advises us on scaling our SaaS platform."

- Strategic Advisors: Discuss how advisors contribute beyond their titles. Are they opening doors, making introductions, or providing strategic insights?

- Advisory Board: If you've assembled an advisory board, explain its purpose and the specific roles of each member.

3. Team Bios: Humanizing the Journey

- Use concise bios to introduce your team members. Include:

- Professional Background: Briefly outline their career trajectory.

- Passions and Interests: show the human side. Maybe your CFO is an avid rock climber or your lead designer moonlights as a jazz pianist.

- Achievements: Highlight relevant accomplishments. Did your CMO launch a successful app? Did your lead engineer contribute to open-source projects?

4. Case Studies: Putting Faces to Success Stories

- Share success stories related to your team. These could be:

- Previous Ventures: If your founders have built successful startups before, mention them.

- Impactful Projects: Describe a project where your team's expertise led to significant outcomes.

- Customer Testimonials: Include quotes from satisfied clients who praise your team's dedication.

Remember, investors invest in people as much as they invest in ideas. Your team's passion, resilience, and expertise will resonate far more than any slide filled with bullet points. So, weave a compelling narrative around your team, backed by real examples and genuine enthusiasm.

Feel free to customize the above points with specifics about your startup and team members!

9. Closing Strong and Inviting Investor Engagement

1. The power of a Strong Call to action (CTA)

A well-crafted CTA is like the crescendo in a symphony—it builds anticipation and leaves the audience wanting more. Investors are busy people, bombarded with pitches daily. Your CTA must cut through the noise and resonate. Here's how:

- Emphasize Urgency: Investors need to feel that they're missing out if they don't act now. Use phrases like "limited opportunity," "early bird access," or "exclusive round."

- Be Specific: Instead of a vague "contact us," say, "Schedule a meeting with our team next week" or "Invest by Friday."

- Invoke Curiosity: Pose a question or hint at exciting developments: "Want to be part of our journey to revolutionize renewable energy?"

- Highlight Benefits: Explain what investors gain—financial returns, impact, or alignment with their values.

2. Crafting Your CTA

- Summarize Your Vision: Remind investors of your big picture. For instance:

> "Our vision is to democratize healthcare through AI-driven diagnostics. Join us in transforming lives."

- Reinforce Traction: Share milestones achieved:

> "We've secured partnerships with three major hospitals and doubled our user base in the last quarter."

- Present the Ask: Be clear about what you're seeking:

> "We're raising $1.5 million to scale our operations and expand into new markets."

- Provide Next Steps: Guide investors:

> "Let's schedule a follow-up call to discuss how you can be part of our success."

3. Real-Life Examples

- Tesla: Elon Musk's famous CTA during Tesla's IPO:

> "Invest in Tesla today and help accelerate the world's transition to sustainable energy."

- Airbnb: Their CTA in early pitch decks:

> "Join us in creating a world where anyone can belong anywhere. Invest now."

- Robinhood: Their CTA during their seed round:

> "Be part of the financial revolution. Invest in Robinhood."

Remember, your CTA isn't just about securing funding—it's about building relationships. Be confident, concise, and compelling. Leave investors eager to take the next step with you.

Feel free to adapt these insights to your specific context and weave them seamlessly into your pitch deck. Good luck!