27 Creds - Management

Writing a primary investor pitch deck is an
overwhelming course of for a lot of startup founders. It’s important to calculate your market, determine your go-to-market technique and your financials… we get what number of founders simply get caught midway. The primary problem right here is- a pitch deck
is a instrument to color a fast and thrilling image of a enterprise alternative. Typically that
thought will not be totally fashioned, or typically the founders have not had the possibility to sit down down
and determine some key enterprise elements. As they construct their pitch deck they notice that they should cease and go give it some thought. The purpose right here is, by fixing your pitch deck,
you’re fixing many strategic choices about your enterprise. On this video, we’re going cowl easy methods to reply
these enterprise questions, and easy methods to translate them into writing within the format that traders
count on. Why do I find out about these things?
Properly, my identify is Caya. I am the CEO of an organization referred to as Slidebean. We’re a DreamIt and 500
Startups accelerator alum and raised enterprise capital for our enterprise. Our platform is a super-easy presentation
platform, and most of our clients are different startups, so successfully, hundreds of decks
and tens of millions of {dollars} have been raised with our shows. With out additional ado, that is HOW TO WRITE
A KILLER PITCH DECK. Alright, so like I stated, with Slidebean, I’ve
labored with a whole lot of corporations, really checked out their pitch decks, and helped them
craft higher tales for his or her startups. Pitch decks are firm tales. For those who suppose
of a deck as a narrative, then you can begin interested by a narrative arc, with plot factors, developments,
antagonists, and a climax for the story. For MOST corporations, this can be a pitch deck define that interprets right into a implausible story-and we have used it time and time once more. First, the PROBLEM/SOLUTION part. There’s
a serious ache level on the earth, and now there’s this answer right here to interrupt the established order. This answer is superb; it seems to be lovely,
it saves time, individuals find it irresistible! That is the PRODUCT part. That is the primary glimpse that individuals will get into the product, what it does, how customers are discovering it important for his or her lives, and you’re getting repeat use and tons of cash and the way the enterprise mannequin is sensible for them. The story builds up, and we transfer into the
GO-TO-MARKET part (fairly often missed). We have not solely constructed this superior product,
however we’re rockstars at promoting it- and there are tons and tons of shoppers on the market. Massive market alternative. Transferring into the COMPETITORS part. Some
corporations have tried to do it, they’re all doing it mistaken. None of them have the insights that now we have, none of them have the tech that now we have and our TEAM has a lot expertise within the trade that we’re simply got down to win. Pleasure at its peak! It is the climax of the story. After which, proper then, this is the way you investor within the room can be part of this firm. And that is the ASK part. You could be part of this and you can also make a shit ton of cash and listed below are the numbers to point out it. There you may have it, the 15 slides for a killer
deck. Whereas that is my model of an excellent startup
story, and once more, we have used it fairly a little bit of instances. I am not making it up. We really surveyed the templates and the shows of some
of probably the most profitable corporations on the market, and completely all of them comprise a variation
of those ~15 slides. Buyers do not need a 45-slide deck. They
do not need a one-pager (properly, a few of them do). They definitely do not need a 50-page enterprise
plan. They need a presentation that reveals that you simply and your staff have solved all of
these in your heads and you can put in easy phrases and clearly that their cash goes to make a distinction to get this enterprise to the place’s it is meant to go. Alright, now let’s dig into the slides. The PROBLEM/SOLUTION part.
The issue (or Alternative) slide must be easy. I imagine in slides that simply suggest 3 or 4 sentences about the established order. I’ve used Airbnb’s instance a bunch of instances and I’ll use it once more. That is what Airbnb wrote on their slide. Value is essential for vacationers. Motels are bubbles.
There is no approach to guide a room with an area or to host a spare room or residence. These are the precise slides from Airbnb’s 2009 first seed spherical deck. Our staff did some redesigning as a result of the unique slides weren’t nice. Discover how every assertion is one line lengthy. They’re
additionally undebatable: you do not need to get into an argument with traders at this level. In case you are constructing a product that quite a lot of
individuals will use, then that ache level you have recognized must be so very clear to so
many individuals. Advanced, wordy downside statements mirror issues that may not be evident
to that many customers, which might imply you may have a more durable time convincing them they want what you have constructed. Some industries are extra simple than
others, after all, however this can be a implausible problem to start out writing your pitch deck: write
your downside assertion in 3 sentences. It takes time, do not count on to get it proper the
first time. The answer is properly, a slide that addresses
these 3-4 factors with, properly, options. On this slide, I like to speak in regards to the product
within the summary. Do not get into options but; simply speak about what it does at its core.
It might be a sentence; it might be three bullet factors or three photographs that hook up with the issue assertion that you simply simply talked about. One essential tip right here is to, as soon as once more,
keep away from tech jargon. Consider advantages as a substitute of features- so as a substitute of claiming: ‘totally
responsive editor,’ rephrase it to ‘edit your presentation wherever, even your telephone.’ It is a killer line proper right here from an actual pitch deck:
The Comfort of a cab in NYC + expertise of knowledgeable chauffeur. That is Uber’s
precise answer slide, on their very long time in the past seed deck. Within the PRODUCT Part, it is time to brag
in regards to the product. Screenshots are good. A 60-second video demo is ideal (not more than
60 seconds, I would counsel). After which a slide on the advantages. As soon as once more, discuss in regards to the
profit to the consumer, not developed or fancy options. With the enterprise mannequin, don’t be concerned an excessive amount of
about totally different pricing plans or tiers. Simply inform us how the corporate makes cash. Is it a subscription, Saas enterprise? Nice, how a lot per thirty days? Is it based mostly on API requests, nice! How a lot per API request?
And what’s the common contract dimension? How a lot is one every one among these customers value to you? This isn’t a pitch to a consumer; this can be a abstract
of how the corporate makes cash. Which brings me to arguably a very powerful
slide, TRACTION. I speak about TRACTION on a regular basis; You want Traction to boost capital.
This is Steve Barsh from Dreamit Ventures repeating the identical factor. For elevating critical institutional capital, you probably have no traction is admittedly actually tough. This is Elizabeth Yin’s weblog,
saying how it is advisable to bootstrap your approach to 30% MoM development. I am legally obligated to say sure, however it occurs very hardly ever. Buyers in 2019 need to see
constructed merchandise, early indicators of income, and buyer pleasure. That’s the approach to stand
out. It is not a lot in regards to the story it is about how the corporate proves that it could actually generate income. If, after all, you may have a substantial, lovely multi-million greenback startup exit in your background, properly, you’re in all probability not watching this video and also you in all probability do not want my assist to boost cash. If you do not have Traction, get it and
then come again. Subsequent up, the Go-To-Market plan. Many of the
corporations I discuss to haven’t got this solved. A superb go-to-market plan ought to have,
A structure of how your buyer acquisition course of seems to be, whether or not it’s outbound gross sales or inbound advertising.
A rollout plan or timeline in your vital staff hires, what they’ll do, and what your
finances is to deliver clients in. Your anticipated unit economics: how a lot is
your common buyer acquisition price going to be, and the way lengthy will it take you to recuperate
it based mostly on your enterprise mannequin. Which, after all, interprets into how a lot cash the corporate wants to boost. The size of your gross sales cycle. Realizing the solutions to those questions earlier than
your product even launches is tough, to not say unimaginable. However as soon as once more, interprets to the significance of
TRACTION earlier than you’re employed on this. However actually, in case you are elevating cash to develop
the corporate, then this slide is completely elementary. Show to the investor that you simply
understand how you’ll spend their cash. These techniques would possibly fail. They are going to fail. You’ll in all probability
must pivot and adjustment soon- however the level right here is displaying that you simply and your staff
have a plan, and will give you one other one if/when this one fails. Now that we have talked about HOW you’re going
to get to market, we should always discuss in regards to the Market Dimension. I’ll quote Steve once more so that you simply
haven’t got to listen to it from me: High-down market estimates do not work. 1% of a trillion-dollar market is an irrelevant quantity to an investor. It is about what number of clients you’ll get. First large mistake we see individuals make: they are saying “oh, if I might simply get 1-2% of the market it is an enormous complete addressable market” Completely not. You can’t do a top-down estimate. You bought to return bottoms up. Subsequent factor individuals do: say “OK, I am going to do a bottoms-up”. The primary instance they are saying is: “wait a second, look how large the issue is” The full addressable market, they are saying, take a look at the impression. As an illustration, a really unlucky downside within the US immediately is the opioid disaster. They’re going to inform us “the opioid disaster is a $100B downside.” Proper, that is the dimensions of the issue. It is not the dimensions of the market. You possibly can’t outline the dimensions of your market being the dimensions of the issue. Alright, so bottom-up market estimates or approaches. The purpose of this slide is displaying how a lot cash might this firm make. Take your time to perform a little
analysis, show to your self that this can be a $100MM enterprise alternative. We will additionally assist
with that. The purpose is traders need to ensure that the enterprise alternative that they’re investing in is giant sufficient to make up for his or her cash. Now that we have coated the enterprise alternative
let’s verify that there aren’t any obstacles in the way in which. Let’s name them antagonists. I like 2-axis charts for competitor comparability,
so long as you’ll be able to differentiate your self with these two axes. Our product 2-axis slide
seems to be one thing like this: Automation vs. no-automation, and exquisite design vs. dangerous
design. That is the place we stand aside, and it is simple to put it out with two variables. Most companies are extra advanced and can
require a grid. This grid enables you to, speak about your benefits far more clearly, and stand
aside with particular options and with out having to ‘oversimplify’ it to only two variables. In case you are a tech startup, the aggressive
benefits slide is the place you get to brag about your stack. Perhaps you may have just a few patents
underneath your identify, maybe you have constructed one thing no one can simply replicate, that is the place
so as to add it. Which additionally brings us to our staff. This slide
ought to reply the query, WHY ARE YOU THE TEAM TO DO IT? and WHY CAN’T ANYONE ELSE CATCH
UP TO YOU? Ideally, it’s best to have years of trade perception that provide you with a novel
perspective on the issue that few others will be capable of see. On this slide, BTW, I like to recommend speaking solely
about your founders and/or core staff members. 2-4 individuals tops. People who find themselves passionate
about this and who’re getting their palms soiled with the precise enterprise operation. I hardly ever suggest mentioning advisors. In
my expertise, advisors usually allocate 1-2 hours per thirty days to the businesses their
advising, which, to me, will not be actually sufficient time to actually impression the enterprise.
I have been requested to advise numerous companies, and what I all the time inform them is,
I am operating my gig, so haven’t got time to get my palms soiled and become involved the way in which
I’d need to, even when I am enthusiastic about your enterprise.
For those who give me the half p.c or 1% inventory and your enterprise succeeds, I am going to find yourself being
a really costly advisor to you in comparison with the time that I might actually dedicate. You might be higher off reserving some workplace hours
from me and selecting my mind now and again. I am going to go away a hyperlink to that within the description. Lastly, financials. Buyers will count on
to see some projections on the way you count on the corporate to develop within the subsequent 5 years.
EVERYONE is aware of these are usually not going to be actual, however they need to see what your expectations
are. For those who imagine the corporate can develop from $0 to $1B in annual income in 5 years, perhaps you’re a little bit too optimistic to not say out of your thoughts. Pink flag. If, after yr 5, it is solely at $1MM in income, then maybe the chance
will not be giant sufficient, or you aren’t formidable sufficient for his or her expectations. Keep in mind, seed stage, and enterprise capital
traders count on you to 10x the valuation of the enterprise inside 5-7 years- that is the
solely method through which the maths works for them. Go try our video on fairness and convertible notes for some extra concepts on how this works. Which brings us to the ask: the place it’s best to
speak about how a lot cash you’re elevating, and a easy breakdown of how you propose to
use it. Classes must be one thing like Development/Advertising, Product Growth, and
Operations. For an organization with a constructed product, this development/enlargement finances must be a giant
chunk of that pie. Now that could be a pitch deck story. As a closing word, these are usually not guidelines, extra
like pointers. Go forward and break them. I, for instance, prefer to kick off with Traction
on slide two if the enterprise mannequin is easy and the corporate is doing properly. It helps seize
consideration early on. When you have a number of merchandise, then it’s a must to give you quite a few Downside/Resolution mixtures for every one among them. So you’ll be able to all the time give you a problem on easy methods to reorganize these slides. I’ve created a pitch deck template with these
slides, which you’ll obtain and edit on Slidebean. Anybody signing up with the hyperlink
beneath will get three free months on any of our plans. Additionally, as soon as once more, go to slidebean.com/pitch-deck
to seek out out different methods through which we will help you along with your slides. Thanks for watching. See you subsequent week.

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