You buy something as small as a few vegetables and still toss and turn to see whether it is worth buying. How do you think a venture capitalist must respond when deciding to pool their money in your project? All of their nit-picking, scrutinising and intrusiveness is justified.
They are the bigger risk-takers, and thus, they have the right to ask questions, request detailed projections, evaluate, judge and have their own opinion about the proposal. Once they choose, you cannot push them to change their decision, but you can always give them a captivating presentation that makes them compelled to join forces with you.
Here are some essential features that an investor wants to see in your pitch deck, so make sure yours has all of them.
The Investor’s Checklist for a Compelling Business Pitch
Suppose you want to revamp your company’s logo design. Whom will you address for it? Of course, it is the best logo design company in town. Therefore, when it comes to preparing a pitch deck for a potential investor, you must quickly contact the expert in the field. A consultant, a coach or an adviser might help you. However, we took care of it, and here are eight essential ingredients for a successful investor pitch.
Business Model – Over View
Like always, you begin the conversation by introducing yourself. Start with the name of your venture and continue by briefly describing the background story of how it all came together. Then, smoothly start proceeding with the details of your business model. You may share insights about your value proposition, target market and revenue streams.
This step is important so that the audience can get a comprehensive understanding of the business landscape. Hence, the aim is to demonstrate the company’s strategic plan, making it evident that the investment will be beneficial for both ends.
Advertising Plan – The Problem & Solution
A solution cannot be effective without the existence of a problem and vice versa. Therefore, at this stage, the next step is to present your advertising plan effectively while also highlighting the issue that your offering addresses.
It could be either a product, a service or both. You just have to identify the pain points of your target audience and explain how the company’s offering can make a difference. However, remember that this journey from problem to solution must be a smooth and slow one. Rushing at this point might cause the audience to lose interest, so take your time, build legit hype and then shoot the arrow.
Market Place & the Competition Level
Investors in a company are exactly what doctors are to the patient – A ray of sunshine after rain. Hence, it is crucial that, like the doctor, the investor knows every minor detail of the business. Everything from market dynamics to the mighty plans required for growth and development.
Understanding the marketplace and competition is a similar topic and has to be a vastly expressed part of the pitch deck. So, do not forget to provide a clear investigation of the industrial landscape using SWOT and PEST analysis approaches.
Contingency Strategy For Backup
With every forward-moving step comes the risk of failure and any unforeseen circumstances that might create confusion at the workstation or marketplace. Moreover, nobody ever wants to waste his or her money on a questionable venture. Hence, it is important to earn their confidence with some solid emergency policies.
Preparation of such strategies illustrates that the pitcher is one step ahead in their game. It also means that they are prepared for the future and proactive with counter-mitigation actions. Consequently, because of this foresight and adaptability, the investor might decide in your favour.
Traction of the Proposed Project
In the corporate realm, business cards are important for networks, and so is the traction for the financiers. They both are equally effective ways of pulling opportunities into the venture, and to surprise everyone, you can sometimes even combine them by hiring a business card design service Ireland.
However, the traction not only works best on the card but also in a presentation, which is aimed at winning over the funding party. For example, including the tangible evidence that there is an audience for your offering in the market can truly benefit you.
Accurate Financial Projections
The investor’s ball is in your court only when he finds something worth investing in your pitch. Therefore, your immediate aim is to present all the financial aspects clearly and realistically. It will not only validate the business model but will also provide both involved parties with a precise image of how the futuristic plans will be executed.
Venture capitalists are also keen to see how dedicated the investee is to yielding returns and handling business operations. It is evident through a presentation whether or not the borrower is determined, enthusiastic and devoted to achieving the goals.
Team Members – A Formal Introduction
Never underestimate the power of your employees. They add a touch of empathy and personalisation to your proposal. Not to brag, but honestly, it does reflect the vibe of a company with a very promising employee culture.
Therefore, never omit the introduction of your team in the presentation. The financiers will be more than pleased to know what expert hands are diving into the making of this new project. However, it is your choice to include just their names and images or also their significant contributions and expertise.
Reveal the Purpose Behind This Effort
Finally, the last but the most important slide to wrap up the entire thing. Every proposal has an intention because, without one, the pitch is just a usual idea. Therefore, to make a not-so-special idea special, we need clarity on what we want from the venture capitalist.
Is it money? Is it shares? Is it a partnership, or is it just their expertise? You can ask for any realistic engagement from them, but before that, they should know what and why you want for your company. So, be very clear-cut in your demands.
Q. How many slides should be in a deck?
Typically, a presentation should have ten to fifteen slides however, it is not a pre-determined fixed range. The whole document only needs to be long enough to cover all the key aspects, and that’s it. Do not get caught in numbers. Focus on quality.
Q. What makes this presentation successful?
A successful investor presentation must communicate the vision, value proposition and market potential. It must be engaging so that the audience gets attracted towards the proposed opportunity. You can use visuals and storytelling skills for this.
Q. What are the two most essential parts of a pitch deck?
The first one is the clear articulation of the problem, which the audience needs to understand. Where the second most essential part is the solution. You need to talk about how your offerings address the needs, establishing a foundation for your business.
Q. What mistakes should you avoid in this effort?
The slides must not be overflowing with text and images because clarity is key. Next, the art of storytelling is crucial to keep the investors engaged in the proposal. Lastly, if the financial projections are vague, then they can be a pitfall for you.
Summarising the Essential Features of an Investor Presentation
As the vegetable seller brings out his mostly fresh and clean produce to convince you to buy from him. As a borrower, you are doing the same to your investor. You present to him –
- Your business model overview
- The problem and the solution
- The marketing plan
- The contingency strategy
- The project action
- Accurate financial projections
- Introduction of the team members
- The ultimate ask or purpose
Just to make sure that he says yes to your proposal.
