Fundable startups sit in between the idea stage and the explosive growth – they have proven that there is a high potential for growth, but have not yet realized that growth. Usually, the thing preventing these startups from scaling widely is a lack of resources; they need all the help they can get to convince an investor audience that their growth potential is a real and likely possibility. While a strong presenter is necessary, nothing helps support an investor pitch like an awesome startup deck.
Five steps to give you the right mindset when going in to pitch.
Step1: Win the first minute.
A lot of people have a great story to tell when they start a pitch but they make the mistake of building it up for a long time. You cannot do that you need to go straight to the point; you got to win them in the first minute. If you lose them then you might lose them for good, they may never come back so you can’t do that in a pitch. First, tell a story about a problem and tell a story about how you’re going to change that for your target market.
Step2: The Problem?
What’s the big problem you’re solving and why should your audience care? All great companies exist to solve a tangible problem in the market – this is your chance to make a case that it’s a problem worth solving. Don’t use too much text to distract from the story that you’re telling in-person.In this slide, you will need to address the following questions as simple and concise as you can be:
• What is the problem?
• How do you know if it’s a problem?
• Do you have primary or secondary research to back this up?
• Who are you solving this problem for?
Step3: The Solution to erase the problem.
Now that you’ve communicated to your investors that there is a big problem that needs to be solved and it has been validated by your research, you can describe how you are going to solve this problem.
Here are the questions you want to answer:
• What are some of the alternative solutions that people are using today? Why are they not working out for them?
• What is your solution?
• How is your solution better than alternative solutions? Is there anything proprietary or unique?
Step4: Make sure you are Investable.
One of the most fundamentals of all prospects that the investors look into a budding start-up is its ability to capture a market. Any investor investing in your firm would look into how definite and quick are their chances of assembling the returns out of their investment.
In order to earn big amount your product needs to be scalable, the Investors will look that in your pitch you should have something that can be sold again and again and usually the investment is spent on building something that you could keep selling, let’s say you do consulting you sell services to your clients by the hour and charge by the hour, even if you work hard there are only 24hours in a day that by definition is not scalable. It’s really hard for investors to invest in that type of business, on the other hand, you have a mobile, mobile application, video games, etc. You build it once and you can keep selling it that by definition is very scalable. Being scalable is a requirement for getting an investment. So you have to make that very clear in your pitch.
Step5: Create a lot of FOMO (Fear of missing out)
The four-letter word that most people don’t know but determine whether an investor will invest now or not that word is FOMO. The investor look at multiple companies at all times they might be interested but is there a sense of urgency to invest right now and that where FOMO comes in if you don’t create the same they won’t have to invest right now, they will wait it might never happen. For instance, if you have a graph of growth, maybe there is a little bit of a jump in the numbers last month you show it to them say hey guys look this is happening right now, there’s a new trend it’s going to blow up from here. So sell them that it’s going to explode from here. This is your chance that creates a lot of FOMO. Finally, they are just an investor like a lot of other investors, but there’s the only one you that are important.
Ok, I have explained the Five-step guide to create a winning Pitch Deck. Hope it makes you feel a little more confident to help you create the same.