Fundraising

Imagine stepping into a boardroom, facing a panel of seasoned investors, knowing you have a secret weapon to turn their interest into commitment. A compelling seed round pitch deck can do just that, transforming an idea into an irresistible investment opportunity. With the right slides, you can captivate investors, clearly communicate your vision, and demonstrate why your startup is poised for success. Investors will want to see various assets and data points throughout the fundraising seed stage. One thing that founders can expect most, if not all, investors to see is a seed round pitch deck. This guide will walk you through creating a pitch deck that stands out and effectively wins over investors. Related resource: 11 Presentation Design Trends for Startup Pitch Decks in 2024 What is a Seed Round Pitch Deck? A seed round pitch deck is a carefully crafted presentation that communicates your startup's vision, business plan, metrics, and other critical insights to potential investors. It is designed to provide a comprehensive overview of your business, highlighting its potential and viability in the market. The primary goal of a pitch deck is to engage investors, moving them further down your fundraising funnel and increasing your chances of securing the capital you need to grow. By effectively presenting your story, team, product, market opportunity, and financial projections, you can make a compelling case for why investors should support your startup. Related resource: How To Build a Pitch Deck, Step by Step What Investors Want To See in Seed Round Pitch Decks Companies raising funds for the first time need a seed round pitch deck to share their story with investors effectively. In a seed round, it’s common to raise funds from angel investors, startup accelerators, and early-stage VCs. With the growing number of pre-seed and seed-stage investors, venture capital has also become more accessible for early-stage startups. Regardless of the investor type, there are certain key elements that every early-stage startup should include in their pitch deck. Founders should tailor their pitches based on their audience, but successful seed round pitches generally include a succinct and exciting story, an exceptional team, product potential or traction, and a clear growth plan. Related resource: Tips for Creating an Investor Pitch Deck A Succinct but Exciting Story Your pitch deck needs a compelling narrative outlining your vision and future plans. Since your company is still developing, it's crucial to inspire and excite your audience about your mission and potential. Make your story engaging and relatable, showing why your company’s purpose is important and why you are the right team to execute this vision. The goal is to make investors want to be part of your journey and invest in not just your company, but also in your vision and the impact it aims to create. An Exceptional Team Having a top-notch team is one of the most critical factors for many venture capitalists. In this slide, you need to establish credibility, demonstrate expertise, and build trust in both your idea and your company. Highlight the relevant experience, unique skills, and past successes of your team members to show why they are the best people to execute this vision. This builds confidence in investors that your team can navigate challenges and drive the company to success. Product Potential or Traction If you have achieved product-market fit, gathered user/customer metrics, or generated revenue, make sure to share these as proof of concept. Highlight any key metrics that demonstrate traction, such as user growth, engagement rates, or revenue figures. This evidence helps build investor confidence in your product’s potential and market demand. However, if you’re in the early stages and have limited or no data, be transparent about it. Investors understand that early-stage startups might not have extensive metrics yet. Focus on showcasing your product’s potential, the problem it solves, and the market opportunity. Use qualitative data, pilot program results, or early user feedback to support your claims. A Growth Plan Even if your product is still in development or you haven't finalized your business model, it’s essential to demonstrate a thorough understanding of your market, customers, and scalability. Present a well-thought-out growth plan that highlights your strategy for reaching and expanding your customer base, penetrating the market, and scaling your business. Your growth plan should be data-driven to lend credibility to your projections. Use market research, customer insights, and relevant data points to support your strategy. This approach shows investors that you have a realistic and actionable plan for growth. For more detailed guidance on modeling your company's future, check out our guide, “Building A Startup Financial Model That Works.” Our 10-Step Guide to Building a Seed Round Pitch Deck (+ A Free Template) Seed-stage startups should approach their first pitch deck differently than they would in later rounds because they typically won’t have extensive stats or user data to rely on. This is why storytelling is crucial. Focus on elements such as the team, competitive advantages, and the market opportunity to help investors understand the future value of your company. These elements can paint a compelling picture of your startup’s potential, even if there isn’t much data available at this stage. For a more detailed breakdown of successful pitch deck examples check out Visible’s guide here and download our free pitch deck template here. Step One: Create The Cover/Title Slide Your cover slide is the first impression investors will have of your pitch, so make it count. It should be visually appealing and include your startup’s name, logo, and a tagline that encapsulates your mission. This slide sets the tone for the rest of your presentation and should immediately grab attention. An example of a successful title slide includes: Startup Name: Clearly displayed at the top Logo: Positioned near the name for brand recognition Tagline: A short, compelling statement about your mission or value proposition Visuals: High-quality images or graphics that align with your brand Create your own by downloading our free pitch deck template here. Step Two: Introduce The Team The team is one of the most critical factors for seed investors when considering a seed round investment. A strong team is often seen as a key to a company's success. Highlight how each team member brings a unique and beneficial aspect to the company, including their roles, relevant experience, and contributions to the company’s mission, the problem being solved, or competitive advantage. This establishes a solid foundation for the rest of the presentation, allowing investors to understand who they are engaging with and lending credibility to your pitch. An example of a successful team slide includes: Photos: High-quality images of each team member Names and Titles: Clearly displayed for each person Brief Bios: Highlighting relevant experience and expertise Unique Contributions: How each member's skills and background benefit the startup Create your own by downloading our free pitch deck template here. Step Three: Diagnose The Problem Clearly articulate the problem your startup aims to solve. Help investors understand the significance of the issue and its impact on the world or specific groups of people. Explain why this problem needs to be addressed and why existing solutions are inadequate or nonexistent. Your goal is to make the problem relatable and compelling, showing that there is a genuine need for a solution. This sets the stage for introducing your product as the ideal answer. An example of a successful problem slide includes: Clear Problem Statement: Concisely describe the problem. Impact: Explain how the problem affects individuals or industries. Data and Examples: Use statistics or real-world examples to illustrate the problem's significance. Create your own by downloading our free pitch deck template here. Step Four: Propose The Solution State that the right solution to this problem hasn't been solved yet or can be significantly improved upon. Explain how your startup has innovatively developed a way to address the problem, why this solution will benefit customers, and why your company is uniquely positioned to execute it. This is essentially your elevator pitch and should be short, compelling, and to the point—aim for around 30 seconds. An example of a successful solution slide includes: Clear Solution Statement: Concisely describe your innovative solution. Customer Benefits: Highlight how your solution benefits customers and addresses their needs. Unique Positioning: Explain why your company is best suited to deliver this solution. Create your own by downloading our free pitch deck template here. Step Five: Prove Your Product Has Traction Use this slide to demonstrate the traction your product has gained so far. If you haven't collected any metrics yet, focus on showcasing your product's development and any qualitative feedback you've received. However, if you have data and are tracking key performance indicators (KPIs), this is where you should highlight them. Metrics that prove traction could include user growth, revenue, engagement rates, customer testimonials, or any other relevant data points that validate your product's market acceptance and potential. With Visible, you can track and automate your startup’s key metrics and build beautiful charts and dashboards for your seed-round pitches. This can help you present your data in a clear and visually appealing way. An example of a successful traction slide includes: Key Metrics: Display relevant data such as user numbers, revenue, or other KPIs. Growth Charts: Use charts and graphs to visualize your growth. Qualitative Feedback: Include customer testimonials or quotes if quantitative data is limited. Create your own by downloading our free pitch deck template here. Step Six: Define Market Size and Opportunity In this section, include all relevant information about the opportunity you’re aiming to seize and the size of that market. It’s crucial to highlight why this market is attractive and how your startup plans to dominate it. Investors often appreciate a strategy that starts with targeting a niche market before expanding. They value the potential for growth and scalability over the initial market size. “Sequencing markets correctly is underrated, and it takes discipline to expand gradually. The most successful companies make the core progression—to first dominate a specific niche and then scale to adjacent markets—a part of their founding narrative.” – Peter Thiel, Zero to One To effectively define your market size and opportunity, consider the following: Total Addressable Market (TAM): Estimate the total market demand for your product or service. This is the broadest measure of your market opportunity. Serviceable Available Market (SAM): Narrow down the TAM to the portion of the market you can realistically target. Serviceable Obtainable Market (SOM): Further narrow the SAM to the market segment you can capture in the short term. Check out our detailed guide on How to Model Total Addressable Market (Template Included). The guide covers: What is Total Addressable Market (TAM)? How to Calculate TAM The Free Visible Total Addressable Market Template and Evaluation Model Where Does Your Total Addressable Market Start (and End)? Why Knowing Your Total Addressable Market is Important Building Your Total Addressable Market Model An example of a successful slide includes: Market Segmentation: Breakdown of TAM, SAM, and SOM. Visual Data: Charts or graphs to illustrate market size and growth potential. Strategic Insights: Explanation of how you will capture and expand your market share. Create your own by downloading our free pitch deck template here. Step Seven: Conduct a Competition Analysis Having competitors in your space doesn’t mean your business idea isn’t viable; in fact, it can validate the need for your solution. However, you must clearly understand and articulate what sets you apart from the competition. Investors and customers need to know why your product or service is the better choice. In your competition analysis slide, focus on the following elements: Identify Competitors: List your main competitors and provide a brief overview of each. Highlight Differentiators: Clearly state your unique value proposition and competitive advantages. Explain why your solution is superior or more effective than existing options. Market Positioning: Use a visual representation, such as a competitive matrix, to show where you stand in relation to your competitors. Highlight the areas where you excel. By presenting a well-thought-out competition analysis, you demonstrate to investors that you have a strategic understanding of the market and a plan to capture and defend your market share. An example of a successful competition analysis slide includes: Competitor Overview: Brief descriptions of key competitors. Competitive Matrix: A visual chart comparing features, pricing, market share, etc. Unique Value Proposition: Clear articulation of what makes your product unique and better. Create your own by downloading our free pitch deck template here. Step Eight: Prove Profitability With Financials/Metrics In this section, you need to provide evidence of your startup's potential profitability and share projections for the next 3-4 years. At the seed stage, this information will be more high-level and based on assumptions, but it's crucial to include revenue and user/customer projections to give investors a sense of your financial outlook. Here's what to include in your financials/metrics slide: Revenue Projections: Outline your expected revenue growth over the next few years. Use realistic assumptions based on your market research and business model. User/Customer Projections: Estimate the growth in your user or customer base. This helps demonstrate the potential demand for your product. Key Metrics: Highlight other important financial metrics such as customer acquisition cost (CAC), lifetime value (LTV), gross margin, and burn rate. These metrics provide insight into the financial health and efficiency of your business. Break-Even Analysis: Show when you expect to become profitable. This gives investors a timeline for when they can expect returns on their investment. An example of a successful financials/metrics slide includes: Revenue Graph: Visual representation of projected revenue growth. User Growth Chart: Projected increase in users or customers. Financial Metrics: Key metrics displayed in an easy-to-understand format. Break-Even Point: Highlight the timeline for reaching profitability. Create your own by downloading our free pitch deck template here. Step Nine: Answer The Question: “Why Now? Why Me?” This section is another opportunity to pitch yourself, your team’s expertise, and your company's unique advantages. Emphasize what makes your team and solution the perfect combination for success. Here's how to craft a compelling “Why Now? Why Me?” slide: Team Expertise and Competitive Advantage Team Expertise: Reiterate the strengths and relevant experience of your team. Highlight specific achievements and skills that make your team uniquely qualified to solve the problem and succeed in the market. Unique Value Proposition: Clearly articulate your “secret sauce” — what makes your product or service unique and better than existing solutions. Explain your competitive advantage and strategy for maintaining it. Timing and Market Entry Timing is a crucial factor that can significantly influence the success of a startup. Here's how to justify your market entry: Market Conditions: Explain any trends, technological advancements, or changes in consumer behavior that make this the ideal time for your product. Use data and market research to support your points. Early Entry: If you’re entering the market early, highlight the benefits of being a first-mover. Emphasize how this allows you to establish a strong brand presence and capture market share before competitors. Late Entry: If you’re entering a more mature market, detail your competitive advantage. Explain how you can leverage existing market data, customer feedback, and technological advancements to create a superior product. Discuss how you can avoid the pitfalls encountered by earlier entrants and use their learnings to your advantage. Every potential disadvantage can be turned into an advantage with the right strategy. You can convince investors that your startup is poised for success by addressing timing and your competitive edge. An example of a successful slide includes: Team Highlights: Key achievements and relevant experience. Competitive Advantage: Clear articulation of your unique value proposition. Market Timing: Justification for entering the market now, with supporting data. Create your own by downloading our free pitch deck template here. Step Ten: Wrap Things Up With The Ask Slide The ask can often be an underutilized section in investor updates, and founders might not realize it’s also essential to include in a pitch deck. Investors should not only be seen as capital resources but also as sources of knowledge and connections. Clearly stating your ask shows investors where you need help and allows them (and you) to determine if they are in a position to provide that support. When they decide to invest, it is in their best interest to contribute to the success of your business in any way they can. Key Elements of a Successful Ask Slide Funding Request: Clearly state the amount of capital you are seeking. Provide a breakdown of how you plan to use the funds, such as product development, marketing, hiring, etc. Additional Support: Mention other forms of support you are looking for, such as mentorship, industry connections, or specific expertise. This shows that you value the investor's experience and network. Milestones: Outline the key milestones you aim to achieve with the requested funds. This gives investors a clear picture of your goals and how their investment will be utilized. An example of a successful ask slide includes: Clear Funding Amount: Specify the total amount you are raising. Detailed Use of Funds: Breakdown of how the funds will be allocated. Support Requests: Mention any additional support needed beyond capital. Milestones: Key objectives to be achieved with the funding. Create your own by downloading our free pitch deck template here. The Best Seed Funding Pitch Deck Examples Many successful founders and startups have shared the pitch decks they used to raise their seed rounds. Studying these examples can provide valuable insights and inspiration for your own pitch. Here are a few of our favorite pitch deck examples: Airbnb Pitch Deck Before becoming a publicly traded company, Airbnb (originally AirBed&Breakfast) used a pitch deck to raise $600k to get things off the ground. The Airbnb seed round deck is an excellent example of effective storytelling and hooking potential investors with a compelling narrative. Uber's Original Pitch Deck Uber, initially named UberCab, started with a humble pitch deck that emphasizes the importance of clarity and brevity. Their original deck focuses on facts and data, avoiding unnecessary fluff, and clearly presenting their value proposition and market potential. Buffer's Seed Round Pitch Deck Buffer, a social media management toolkit for small businesses, raised a $500k seed round and shared their deck on their blog. The Buffer seed round deck is notable for its focus on traction, showcasing the product's early success and growth potential. The Buffer team reached out to over 200 investors, conducted 50 meetings, and ultimately secured 18 investors. Sequoia Capital Pitch Deck Template Sequoia Capital, one of the leading venture capital firms, has also shared a pitch deck template that outlines key elements of a successful pitch. This template is designed to help startups communicate their vision and value proposition effectively. You can view Sequoia’s pitch deck template here. For more detailed breakdowns and to download our free pitch deck template, check out Visible’s guide here. Related resource: 23 Pitch Deck Examples for Any Startup How to Pitch Seed Stage Investors Once your pitch deck is complete, the pitching process begins. Here are some best practices for pitching seed stage investors: Best Practices for Pitching Seed Stage Investors Target the Right Investors: Save time by only reaching out to investors who match crucial factors such as industry, funding amount, stage, and geography. Use tools like our Connect Investor Database to find suitable matches. For tips on emailing your first investors, check out 5 Strategies for Cold Emailing Potential Investors. Incorporate Feedback: Treat feedback as a gift. When you start receiving feedback from your pitches, implement it back into your deck immediately. Notice which slides grab investors’ attention and consider moving those to the beginning or integrating their elements into other slides. Be a Confident Storyteller: Confidence and good storytelling are key to delivering a compelling pitch. Ensure investors feel your passion, energy, and ability to drive the company forward. Consider taking a stand-up comedy or public speaking class to enhance these qualities. Researching what makes good storytelling can also be advantageous. Prepare Thoroughly: Know your pitch deck inside out. Be ready to answer any questions investors might have about your business, market, financials, and growth plans. The more prepared you are, the more confident you’ll appear. Leverage Your Network: Whenever possible, seek warm introductions to investors. A recommendation from a mutual connection can significantly increase your chances of getting a meeting and receiving serious consideration. For more inspiration and resources on creating a compelling pitch, check out our free pitch deck template here. How Visible Helps Startups Raise Capital There is no one-size-fits-all pitch deck solution these points are meant to help guide the process but you should also see what makes sense for your company. Fundraising can be boiled down to storytelling. We believe a VC fundraise mirrors a B2B sales motion. The fundraising process starts by finding qualified investors (top of the funnel) and building relationships (middle of the funnel) with the goal of them writing a check (bottom of the funnel). Just as a sales team has dedicated tools for their day-to-day, founders need dedicated tools for managing the most expensive asset they have, equity. Our community can now find investors, track a fundraise, and share a pitch deck, directly from Visible. Easily upload your deck, set your permissions, and share your deck with potential investors via a unique link (check out an example deck here). In return, we’ll surface the analytics that matter most so you can better your odds of closing a new investor. Try Visible here.

Crowdfunding has become a popular way for startups to raise capital, offering an alternative to traditional funding methods. While it promises various benefits like community engagement and validation of your concept, it also comes with its own challenges. This article will delve into why some founders choose crowdfunding, explore the different types of crowdfunding, and outline the key pros and cons to help you decide if this path is right for your startup. Why Do Some Founders Choose to Crowdfund? Crowdfunding can be an attractive option for many startup founders due to its unique benefits and flexibility. Unlike traditional funding methods, crowdfunding allows founders to raise capital without giving up significant equity or taking on debt. This approach mainly benefits startups with innovative ideas but limited access to traditional financial resources. Crowdfunding enables founders to test the market and validate their product concepts by engaging directly with potential customers and investors​​​​. Crowdfunding campaigns can significantly enhance a startup's visibility. By showcasing their ideas on popular crowdfunding platforms, founders can reach a broader audience and build a community of early adopters and brand advocates. This exposure can lead to valuable marketing opportunities and further fundraising potential​​​​. Additionally, the democratization of funding allows everyday people to invest in startups they believe in, aligning their interests with the success of the business. This not only diversifies the funding sources but also turns backers into passionate supporters who promote the startup's vision​​. Crowdfunding also offers flexibility in how funds can be used, often with fewer restrictions compared to traditional loans or venture capital investments. This can be crucial for startups needing agility in their early stages​​. For many founders, the ability to maintain control over their company while still accessing necessary funds makes crowdfunding an appealing option. Types of Crowdfunding Crowdfunding is not a one-size-fits-all solution; various types cater to different needs and goals. Each type has its own unique characteristics and benefits, making it important to choose the one that aligns best with your startup's objectives. The main types of crowdfunding include reward-based, equity, peer-to-peer lending, and donation-based. Understanding these options can help you determine the best approach for raising capital for your startup​​​​. Related resource: Types of Crowdfunding Reward-Based Crowdfunding Reward-based crowdfunding is a popular method where backers contribute funds to a project in exchange for rewards. These rewards can vary widely but often include early access to the product, special editions, or exclusive merchandise. This type of crowdfunding is particularly appealing for creative projects, new product launches, and innovative ideas that can excite a broad audience. Platforms like Kickstarter and Indiegogo are leading examples of reward-based crowdfunding sites. Kickstarter is known for its all-or-nothing funding model, where projects must reach their funding goal to receive any money, ensuring that backers' contributions go towards fully realized projects​​​​. Indiegogo offers more flexible funding options, allowing projects to keep the funds raised even if they don't reach their target, which can be beneficial for creators with ongoing development needs​​​​. Reward-based crowdfunding not only provides necessary capital but also helps in building a community around the product. Backers often become early adopters and advocates, spreading the word about the project through their networks. This engagement can create a strong foundation of support and interest, vital for the long-term success of the startup​​. Equity Crowdfunding Equity crowdfunding is a method where startups raise capital by offering shares of their company to investors in exchange for funding. Unlike reward-based crowdfunding, where backers receive tangible rewards, equity crowdfunding allows investors to become partial owners of the company, potentially earning a return on their investment if the company succeeds. This type of crowdfunding is ideal for startups looking to raise larger sums of money and willing to share ownership to achieve their goals​​​​. Platforms like SeedInvest and Crowdcube specialize in equity crowdfunding. SeedInvest connects startups with accredited investors and provides a streamlined process for raising capital. The platform has helped numerous companies secure significant funding while offering investors the opportunity to be part of innovative ventures​​. Crowdcube, based in the UK, is another prominent platform that allows businesses to raise funds from a large pool of investors, including both accredited and non-accredited investors. This democratizes the investment process and enables a wider range of people to support and benefit from startup growth​​​​. Equity crowdfunding not only provides the financial resources needed for growth but also helps in building a strong base of invested supporters who are financially and emotionally committed to the startup's success. This type of crowdfunding can be a powerful tool for startups looking to scale rapidly and access a broader investor base​​​​. Related resource: Advantages and Disadvantages of Venture Capital Peer-to-Peer Lending Peer-to-peer (P2P) lending is a form of crowdfunding where startups and small businesses can obtain loans directly from individual investors, bypassing traditional financial institutions. This model connects borrowers with lenders through online platforms, allowing startups to access necessary funds more quickly and often at more favorable rates than those offered by banks​​​​. LendingClub and Prosper are two of the most well-known P2P lending platforms. LendingClub allows borrowers to apply for personal and small business loans, which are then funded by individual investors who choose to invest in the loan based on the borrower's profile and creditworthiness. Prosper operates similarly, providing a marketplace where borrowers can list loan requests and investors can fund these loans in exchange for interest payments​​​​. P2P lending offers several advantages for startups. It can provide access to capital without the need for extensive credit history, and the application process is typically faster and more straightforward than traditional bank loans. Additionally, P2P lending can offer more competitive interest rates and flexible terms, making it an attractive option for startups looking to manage their cash flow effectively​​​​. However, it is important for startups to carefully consider the terms and ensure they can meet repayment obligations, as defaulting on a P2P loan can impact their credit rating and investor relations​​​​. Donation-Based Crowdfunding Donation-based crowdfunding is a method where individuals contribute money to support a cause, project, or individual without expecting any financial return or tangible reward. This type of crowdfunding is often used for charitable projects, personal emergencies, community initiatives, and other ventures that rely on the goodwill of supporters. Donors contribute purely out of a desire to support the mission or cause presented. GoFundMe is one of the most popular platforms for donation-based crowdfunding. It allows individuals to create fundraising campaigns for a wide range of purposes, from medical expenses to educational endeavors, and even community projects. Donors can easily contribute to these campaigns and share them within their networks to increase visibility and support​​​​. Donation-based crowdfunding can be incredibly effective for raising funds quickly, especially when the cause resonates with a large audience. It also allows for the creation of a supportive community around the project or cause, fostering a sense of shared purpose and engagement among donors​​. However, this type of crowdfunding does not provide financial returns to donors, which can limit the amount of funds raised compared to equity or reward-based crowdfunding. Additionally, campaign creators must communicate transparently and regularly with their supporters to maintain trust and credibility​​. Pros of Crowdfunding Crowdfunding offers a range of benefits that can be particularly advantageous for startups. However, it's crucial to assess these advantages in the context of your specific business needs and future plans to determine if this funding path is the right choice for you. Here’s a brief overview of the main pros of crowdfunding: Build Community Around the Product By fostering a dedicated community through crowdfunding, you create a network of engaged supporters who are financially invested and emotionally committed to your product and mission. This community can be a powerful asset for your startup, driving sustained growth and success. Early Adopters and Advocates: Crowdfunding campaigns attract early adopters who are passionate about innovation and new products. These individuals are not just backers; they become advocates who promote your product within their networks, amplifying your reach and credibility​​​​. Direct Feedback and Involvement: Engaging with backers during the crowdfunding campaign allows for direct feedback and involvement in the product development process. Supporters feel valued when their opinions are considered, creating a stronger connection to the product and its success. This interaction helps refine the product to better meet market demands​​​​. Shared Mission and Vision: A successful crowdfunding campaign effectively communicates the mission and vision behind the product. This narrative resonates with backers who share similar values and goals, fostering a community united by a common purpose. This alignment can result in long-term loyalty and ongoing support beyond the initial campaign​​​​. Enhanced Trust and Loyalty: Regular updates and transparent communication throughout the campaign build trust and loyalty among backers. When supporters are kept informed about progress and challenges, they feel more connected and invested in the journey, which strengthens their commitment to your brand​​​​. Co-Creation Opportunities: Involving the community in decisions, such as product features or design choices, transforms backers into co-creators. This collaborative approach not only enhances the product but also deepens the emotional investment of the community in its success​​​​. Validates the Concept Crowdfunding not only raises funds but also validates your product concept by proving market demand, gathering real-time feedback, attracting additional investors, and identifying early adopters. This validation is crucial for refining your product and ensuring its success in the marketplace. Market Demand: A successful crowdfunding campaign indicates strong market demand. When backers contribute to your project, they are essentially voting with their wallets, showing that there is genuine interest and willingness to pay for your product​​​​. Real-Time Feedback: Throughout the campaign, you receive real-time feedback from backers. This input helps you understand customer preferences, make necessary adjustments, and improve your product before a full-scale launch. Positive feedback reinforces that your product is meeting market needs​​​​. Proof of Concept for Investors: Demonstrating successful crowdfunding can attract additional investors. It provides tangible proof that your product resonates with consumers and has the potential for broader market success, making it easier to secure further investment​​​​. Early Adoption Indicators: Early adopters who support your campaign are likely to become repeat customers and advocates. Their enthusiasm and initial support can be a strong indicator that your product is positioned correctly and poised for market acceptance​​​​. Allows Access to Finance Without Loans Crowdfunding enables you to raise capital without the need for traditional loans, which means you can avoid interest payments and the pressure of debt repayment, thereby maintaining better cash flow​​​​. Increases Visibility of the Company Crowdfunding can greatly enhance your startup's visibility through media coverage, social media engagement, customer interaction, improved SEO, and sustained marketing momentum. These benefits are crucial for building brand awareness and attracting further investment. Media Attention: Successful crowdfunding campaigns often attract media coverage. This exposure can help your startup gain attention from journalists, bloggers, and influencers who can further amplify your reach. Media coverage not only increases brand awareness but also adds credibility to your venture​​​​. Social Media Buzz: Crowdfunding platforms are inherently social, encouraging backers to share campaigns with their networks. This organic sharing can create a viral effect, dramatically expanding your audience and increasing engagement on social media channels​​​​. Customer Engagement: Engaging directly with backers through updates, comments, and feedback during the campaign fosters a sense of community and loyalty. This interaction helps build a strong brand identity and a base of enthusiastic supporters who can become long-term customers​​​​. Search Engine Optimization (SEO): Crowdfunding campaigns often generate a lot of online content, including blog posts, news articles, and social media mentions. This content can improve your startup's SEO, making it easier for potential customers and investors to find you online​​​​. Marketing Momentum: The excitement generated by a crowdfunding campaign can carry over into subsequent marketing efforts. The initial buzz helps build momentum for product launches, promotional events, and future funding rounds​​​​. Allows You to Retain Equity One of the key benefits of certain types of crowdfunding, such as reward-based or donation-based models, is that they allow founders to raise capital without giving up equity in their company. Here’s why this is important: Maintaining Control: By not giving away equity, founders retain full control over their company's decisions and direction. This autonomy is crucial for maintaining the original vision and executing long-term strategies without external interference​​​​. Future Valuation: Keeping more equity in the early stages can be beneficial when seeking future funding. Retaining equity means founders can offer a larger share of ownership in later funding rounds, potentially attracting larger investments at higher valuations​​​​. Financial Benefits: Retaining equity allows founders to reap more financial benefits if the company becomes successful. Founders can maintain a significant stake in the company, ensuring they benefit proportionally from the company’s growth and profitability​​​​. Investor Appeal: Having a larger equity stake can make the company more attractive to future investors, as it shows confidence and commitment from the founders. It also leaves more room to negotiate with potential investors in subsequent funding rounds​​​​. Related resource: Seed Funding Cons of Crowdfunding While crowdfunding can offer many advantages, it also comes with its own set of challenges and drawbacks. It's crucial to weigh these cons against your business's specific needs and future plans before deciding to pursue this funding route. Here’s a brief overview of the main cons of crowdfunding: Success is Not Guaranteed An unsuccessful crowdfunding campaign can have several serious implications for a startup. Firstly, it results in a significant loss of time and resources spent on planning, marketing, and engaging with potential backers​​​​. Failure can also harm your startup's reputation, as potential investors and customers might see it as a lack of market interest or viability, making future funding harder to secure​​. An unsuccessful campaign means missing out on valuable market validation and feedback, which are crucial for product development and refinement​​​​. Lastly, on some platforms, not meeting the funding goal means pledged funds are returned to backers, leaving the startup without any capital despite the effort invested​​​​. Your Intellectual Property Could Be at Risk If people "steal" your idea after you've shared it on a crowdfunding platform, it can have several detrimental effects. Competitors might copy your concept and bring similar products to market faster, undermining your unique selling proposition and competitive advantage​​​​. This can result in lost potential revenue, market share, and increased competition. Without proper intellectual property protections like patents, trademarks, or copyrights, you may have little legal recourse to stop others from using your ideas​​. This situation can also damage your reputation if backers perceive your idea is not original or sufficiently protected, potentially affecting future funding opportunities​​​​. Protecting your intellectual property before launching a crowdfunding campaign is crucial to protecting your business from these risks. Social and Legal Pressure to Deliver to Fundees on Promise When you launch a crowdfunding campaign and receive backing, you enter into a commitment to fulfill the promises made to your supporters. Here are the key obligations you have towards your backers: Delivering Promised Rewards: For reward-based crowdfunding, you must provide the specific rewards promised to your backers, such as products, services, or exclusive content. Failure to deliver these rewards can lead to dissatisfaction, negative reviews, and damage to your reputation​​​​. Regular Updates and Communication: Transparency is crucial in maintaining trust with your backers. This means providing regular updates on the progress of the project, addressing any delays or issues, and being honest about challenges and timelines. Effective communication helps manage backers’ expectations and can mitigate negative reactions if problems arise​​​​. Financial Accountability: Backers expect that the funds they contribute will be used as outlined in the campaign. Mismanagement of funds or deviation from the stated use can lead to loss of trust and potential legal issues. Keeping accurate financial records and being transparent about expenditures is essential​​​​. Legal Compliance: Depending on the platform and the nature of the crowdfunding, there may be legal obligations regarding the fulfillment of promises and the management of funds. Failure to comply with these legal requirements can result in lawsuits or other legal actions from backers​​​​. Managing Expectations: Backers are often passionate and vocal about the projects they support. Managing their expectations involves not only delivering on promises but also engaging with them constructively and respectfully, even when facing criticism or setbacks​​​​. Exposure and Public Scrutiny Crowdfunding campaigns inherently place your startup in the spotlight, significantly increasing both visibility and scrutiny. Here’s how this exposure can put your company under a microscope: Public Feedback and Criticism: Crowdfunding platforms allow backers and the general public to comment on your project. This means you can receive both positive feedback and harsh criticism. Negative comments or reviews can quickly spread, affecting public perception and potentially deterring future backers and customers​​​​. Transparency Requirements: To maintain trust, you must provide regular updates on your project's progress. This level of transparency means any delays, challenges, or changes are exposed to public view. If you face setbacks, you must explain these openly, which can amplify the pressure to meet your commitments​​​​. Performance Pressure: The success or failure of your crowdfunding campaign is publicly visible. This visibility can amplify the impact of both achievements and failures, making any missteps or unmet goals more damaging to your reputation and future fundraising efforts​​​​. Competitor Awareness: Publicly sharing detailed information about your business idea and progress alerts competitors, who might replicate or improve upon your concept. This can increase competition and pressure you to innovate continuously and protect your intellectual property​​​​. It’s Not Free, in Fact, It Can Be Costly Crowdfunding can require significant upfront investment and ongoing costs that startups need to consider carefully. Here are the key ways in which crowdfunding can be costly: Marketing and Promotion: A successful crowdfunding campaign requires extensive marketing to reach potential backers. This includes creating promotional videos, running social media ads, and possibly hiring PR firms to generate buzz. These marketing efforts can quickly add up, often running into thousands of dollars​​​​. Platform Fees: Most crowdfunding platforms charge a percentage of the funds raised as a fee. For example, Kickstarter and Indiegogo typically take around 5% of the total amount raised, plus additional payment processing fees of around 3-5%. These fees can significantly reduce the net funds received from a campaign​​​​. Production Costs: For reward-based crowdfunding, the costs of producing and shipping the rewards can be substantial. This includes manufacturing the products, packaging, and logistics. Misestimating these costs can lead to financial shortfalls and the inability to deliver promised rewards, further impacting the startup’s reputation and finances​​​​. Professional Services: To ensure the campaign is professionally managed, startups might need to hire various professionals, such as graphic designers, videographers, and copywriters. Additionally, legal and accounting services might be required to navigate the complexities of managing funds and ensuring compliance with financial regulations​​​​. Time and Resource Allocation: Running a crowdfunding campaign demands significant time and effort from the startup team. This can divert resources from other critical business operations, potentially slowing down other areas of growth and development​​​​. Key Things to Consider When evaluating crowdfunding as a funding option, there are crucial factors beyond just the basic pros and cons that you need to consider. These elements can significantly impact the success of your campaign and the overall health of your startup. Choose the Right Crowdfunding Platform Selecting the appropriate crowdfunding platform is crucial to the success of your campaign. Different platforms cater to various types of projects and audiences, each with unique features, fee structures, and support systems. Here are some of the major crowdfunding platforms and their differences: Kickstarter Kickstarter is one of the most well-known reward-based crowdfunding platforms. It operates on an all-or-nothing funding model, meaning projects must reach their funding goal to receive any money. This platform is ideal for creative projects, including art, music, film, and technology innovations. It has a large, active community of backers who are enthusiastic about supporting new and innovative ideas. However, the all-or-nothing approach can be risky if the campaign does not meet its target​​​​. Indiegogo Indiegogo also focuses on reward-based crowdfunding but offers more flexibility than Kickstarter. It provides both fixed and flexible funding options. With flexible funding, you can keep the funds raised even if you do not meet your goal, making it a safer option for projects that need any amount of funding to proceed. Indiegogo supports a wide range of projects, from tech gadgets to community initiatives, and offers additional services such as InDemand, which allows successful campaigns to continue raising funds after the initial campaign ends​​​​. SeedInvest SeedInvest is a leading equity crowdfunding platform, where backers invest in exchange for equity in the company. It targets startups looking to raise significant capital from accredited investors. SeedInvest provides extensive vetting and support, ensuring that only high-quality, vetted startups are presented to potential investors. This platform is suitable for startups ready to scale and attract serious investors who are looking for a return on their investment​​​​. Crowdcube Crowdcube, based in the UK, also specializes in equity crowdfunding. It allows both accredited and everyday investors to invest in startups in exchange for equity. Crowdcube has a large and diverse investor base, making it an excellent choice for startups looking to raise funds from a wide audience. It provides a comprehensive platform for managing investments and maintaining ongoing communication with investors​​​​. GoFundMe GoFundMe is a donation-based crowdfunding platform commonly used for personal causes, charitable projects, and community initiatives. It does not offer tangible rewards or equity in exchange for contributions. Instead, donors give money to support a cause they believe in. GoFundMe is ideal for non-profit organizations, individuals seeking help with medical expenses, or community projects that need financial support​​​​. Set a Strategy and Goals Ahead of Time Setting a strategy and goals ahead of time ensures that your crowdfunding campaign is well-organized, efficiently run, and more likely to succeed. It also helps align efforts, manage resources, and effectively engage with your target audience, all of which are critical for achieving your funding goals. Clarity and Direction: Having a well-defined strategy provides a clear roadmap for your campaign. It helps you outline the steps you need to take, the resources required, and the timeline to follow. This clarity ensures that everyone involved in the campaign is on the same page and working towards the same objectives​​​​. Target Setting: Specific goals allow you to set realistic funding targets. These targets not only help in measuring success but also in planning the allocation of funds. Knowing exactly how much money you need and for what purpose enables you to communicate this effectively to potential backers, increasing their confidence in your project​​​​. Resource Allocation: A strategic plan helps in identifying and allocating the necessary resources, such as marketing efforts, team roles, and financial investment. By understanding what resources you need and planning their use, you can optimize efficiency and avoid last-minute scrambles that could derail your campaign​​​​. Marketing and Promotion: Effective marketing is essential for a successful crowdfunding campaign. A pre-defined strategy helps you plan your promotional activities, such as social media campaigns, email newsletters, and press releases. It ensures that you reach your target audience effectively and create the necessary buzz around your campaign​​​​. Risk Management: By setting goals and planning ahead, you can identify potential risks and challenges that might arise during the campaign. This foresight allows you to develop contingency plans to address these issues, reducing the likelihood of unexpected setbacks​​​​. Backer Engagement: A clear strategy includes plans for engaging with backers throughout the campaign. Regular updates, prompt responses to inquiries, and transparent communication help build trust and maintain backer interest. Knowing how and when to interact with your supporters can significantly impact the campaign's success​​​​. Decide What Type of Funding Is Right for Your Startup with Visible.vc Crowdfunding offers both significant benefits and notable challenges for startups. While it can build a supportive community, validate your product, and provide necessary capital without loans, it also requires careful planning, transparency, and the management of public scrutiny. As you weigh these factors, consider your specific needs and future plans to determine if crowdfunding is the right path for your startup. To effectively track and manage your crowdfunding efforts and overall startup growth, create your Visible account today and give it a free try for 14 days here.

Jessica is the co-founder and president of Maad, francophone Africa’s fastest-growing B2B e-commerce player. Jessica and her team adopted Visible in December 2021 to start sending out investor updates for the first time after closing a pre-seed round. Since then the team at Maad has continued to leverage Visible’s suite of fundraising tools such as data rooms and pitch decks. Maad successfully closed its seed round led by Ventures Platform in late 2023. Read more about their recent coverage in TechCrunch here. This case study details why Maad chose Visible and the specific solutions they leveraged to support the successful raise of their seed round. Jessica's Founder Journey—From Airbnb to Empowering Retail Owners in Africa Maad was co-founded by Jessica Long in 2021. Jessica has a demonstrated passion for creating software that adds value operationally. She fostered this passion in her previous work as a software engineer at Airbnb, building systems to support novel machine learning and crowdsourcing technology at Idibon in San Francisco, and leading the development of national digital health platforms in West Africa as the Director of Global Services at Dimagi. Jessica started Maad because she believed that better data tools could transform the business landscape of Senegal and other developing West African countries. After spending two years building out a generalizable tech platform to track field operations of all kinds, she and her cofounders zeroed in on the informal retail market. With 100,000s of small shops sourcing the same products from a patchwork supply network, Jessica saw a big opportunity to connect small shops directly to the agribusinesses supplying them. Maad is now Francophone Africa's fastest-growing B2B e-commerce player. Maad supplies food, beverages, and everyday household products to thousands of small shops. The company is dedicated to empowering traditional retailers in Francophone West Africa. Their product offerings provide traditional retailers with a mobile app that’s a one-stop shop for all their supply needs and Fast-Moving Consumer Goods (FMCG) brands with a complete picture of the fragmented consumer market. The Need to Professionalize Investor Communications After Raising a Pre-seed Round Maad closed a pre-seed round in 2021 led by Launch Africa, Oui Capital, and Alumni Ventures. This was the first time Jessica and her cofounders had ever sent out monthly investor updates. Their first attempt included a few bullet points in an email to which her investors gave her feedback: “You could be doing this more professionally.” Jessica’s early investors explained that monthly updates are often the first thing that new investors will look at to understand the trajectory of a company. “Writing crisp, effective updates was one of the best ways to showcase our company’s growth and development,” - Jessica Long, Co-Founder and President of Maad The team at Maad took this feedback to heart and evaluated several tools for the job. In response to why Jessica chose Visible she shared, “Visible struck us as the best choice, with its emphasis on high-quality email reports.” Jessica highlighted specific features that made Visible stand out: Filterable contact lists that make it easy to manage the email’s audience The ability to add charts and graphs inline The optional live data integration The ability to add photos and GIFs Recipient engagement tracking Maad’s Growing Need for Visible’s Fundraising Solutions Originally Maad’s primary use case for Visible was sending out monthly updates to investors. When Maad started its second fundraise, Visible became its centralized fundraising solution where they also hosted their pitch decks and data rooms as well. “It truly became a home for sharing information with investors about our company.” - Jessica Long, Co-Founder and President of Maad Since first leveraging Visible in December 2021 to update current investors, Maad utilized Visible’s more advanced fundraising solutions and successfully closed their Seed round of $2.3M (in equity) in late 2023. The round was led by Ventures Platform. Read more about the announcement of Maad’s recent financing in TechCrunch here. Visible Impact on Maad’s Investor Engagements Visible has equipped Maad to send high-quality investor updates every month since December 2021. Visible's update engagement tracking allowed Jessica to see how closely prospective investors were following her company, which helped their team prioritize their timespend during the seed stage fundraise. Increasingly, the team at Maad kept all investor-related information assets on the Visible platform including monthly investor updates, pitch decks, and data rooms. This created a clean and consistent place for sharing information and tracking engagement. “Every month we get compliments on the quality of the investor updates we are able to generate with Visible’s platform.” Maad’s Top Four Visible Solutions Jessica shared the key advantages of using the Visible platform are: The beautiful and polished investor updates Thoughtful collaboration and versioning features Engagement tracking Consolidation of all major sources of investor information onto a single platform Below are some examples of some of Maad’s favorite solutions in Visible. 1) The ability to store investor updates all in one place. This makes it easy to review previous updates, track engagement rates, and resend the updates if needed. 2) Fun features like directly embedded GIFs in newsletters allow us to connect with Maad’s supporters with more immediacy. 3) Uploading different pitch decks to the same link is an incredible feature for us. We love the versioning and collaboration this allows us internally, while presenting a unified experience to external collaborators 4) Beautiful graphs, directly configurable on the platform, are one of the most popular features of our monthly updates:

Creating a pitch deck that captivates investors is crucial for any startup founder looking to secure funding. But what slides should you include to make the strongest impression? In this article, we'll walk you through the ten essential slides every pitch deck needs. From outlining your problem statement to showcasing your financials, we'll provide you with a roadmap to crafting a compelling narrative that captures investor interest and sets the stage for successful fundraising. Get ready to transform your pitch deck and elevate your startup's potential. Related resource: Our Teaser Pitch Deck Template Why Are Pitch Decks Important? Pitch decks are crucial because they offer a concise, visually appealing format to present a startup's business plan to potential investors. They are the preferred format for several reasons: Clarity and Focus: A well-structured pitch deck highlights the most critical aspects of your business, such as the problem, solution, market opportunity, and financial projections. This ensures that investors quickly grasp the essence of your startup. Engagement: Visual elements like graphs, charts, and images make the presentation more engaging and easier to follow. This helps maintain the attention of investors, who often review numerous pitches. Efficiency: Pitch decks allow founders to convey essential information succinctly. By adhering to guidelines like the 10/20/30 rule, presentations remain brief and impactful, respecting the time constraints of busy investors. Storytelling: They provide a narrative structure that helps tell your startup's story compellingly. This narrative approach helps build a connection with investors, making your pitch more memorable. Related resource: Seed Round Pitch Deck The 10/20/30 Rule The 10/20/30 Rule, introduced by venture capitalist Guy Kawasaki, is a guideline designed to help create effective and engaging pitch decks. According to this rule, a pitch deck should adhere to three key principles: Ten Slides: Limit your presentation to ten slides. This constraint forces you to focus on the most essential information, ensuring clarity and preventing information overload for your audience. Twenty Minutes: Aim to deliver your presentation within twenty minutes. This time frame is optimal for maintaining investors' attention while providing enough time for discussion and questions. Thirty-Point Font: Use a minimum font size of thirty points for your text. This ensures that your slides are easily readable from a distance and encourages you to be concise, using only the most important points. Adhering to the 10/20/30 Rule is crucial for several reasons. Keeping the presentation short and engaging helps maintain the audience's interest. It also ensures that your key messages are communicated clearly and effectively, making it easier for investors to understand and remember the critical aspects of your business. By following this rule, you can create a pitch deck that is both powerful and persuasive. Related resource: Slides in a Pitch Deck Slides to Include in Your Pitch Deck When it comes to pitch decks, less is more. A concise and focused presentation allows you to communicate your startup’s value proposition effectively without overwhelming your audience. Including only the most essential slides ensures your message is clear and impactful. Here are the ten key slides you should include in your pitch deck: Related resource: Pitch Deck Design Title Slide The title slide is your first impression and sets the stage for the entire pitch. It should be clean, professional, and include the following key elements: Company Name: Clearly state the name of your startup to establish brand identity. Your Name and Title: Include your name and title to personalize the presentation and establish credibility. Contact Information: Provide your email address and phone number so investors can easily reach out for follow-ups. Company Logo: Display your logo to reinforce brand recognition and professionalism. Tagline or Mission Statement: A brief, compelling tagline or mission statement can succinctly convey your company’s purpose and vision. The title slide is important because it sets the tone for the rest of your presentation. It provides essential information at a glance and makes it easy for investors to remember who you are and how to contact you. Example Airbnb: Airbnb's pitch deck title slide prominently features their logo, the company name, and a tagline: "Book rooms with locals, rather than hotels." This immediately communicates their unique value proposition. Problem Statement The problem statement slide is critical because it sets the stage for why your startup exists. It should clearly define the problem your product or service aims to solve, making it relatable and compelling to potential investors. To make a strong introductory statement, include the following metrics: Market Size: Quantify the problem by highlighting the size of the market affected. This shows the potential scope and impact of your solution. Prevalence: Use statistics to illustrate how widespread the problem is. For instance, stating that "70% of small businesses struggle with cash flow management" makes the problem tangible and urgent. Financial Impact: Provide data on the financial consequences of the problem. For example, "Businesses lose $100 billion annually due to inefficient inventory management" underscores the economic significance. User Pain Points: Highlight specific pain points experienced by your target audience. This helps investors understand the real-world challenges and frustrations that your solution addresses. Importance These metrics are important because they: Establish Relevance: Demonstrate that the problem is significant and affects a large number of people or businesses. Quantify Opportunity: Show investors the potential market size and financial opportunity if the problem is solved. Create Urgency: Emphasize the immediate need for a solution, making your startup's mission compelling and timely. Examples Airbnb: In their pitch deck, Airbnb highlighted the problem by stating, "Price is an important concern for customers booking travel online." They supported this with data on the cost of hotel stays and the growing trend of people seeking more affordable options. LinkedIn: LinkedIn’s pitch deck focused on the problem of professionals struggling to maintain effective networking. They presented data on the limitations of existing solutions like traditional resumes and business cards, highlighting the need for a modern professional networking platform. Related resource: How to Create Impactful Problem/Solution Slides for Your Pitch Deck Solution or Product Description The solution or product description slide is your opportunity to showcase how your startup addresses the problem identified in the previous slide. To capture the attention of investors, your product needs to be conveyed clearly, compellingly, and convincingly. Here’s how to do it: Clear Description: Provide a concise and clear description of your product or service. Avoid jargon and ensure that even someone unfamiliar with your industry can understand the solution. Value Proposition: Highlight the unique value proposition of your product. Explain what sets it apart from existing solutions and why it is better or more effective. Key Features: Showcase the main features and functionalities that solve the problem. Use bullet points or visuals to make these features easily digestible. Benefits: Focus on the benefits your product provides to users. Explain how it improves their lives or businesses, making it indispensable. Visuals and Demos: Use images, screenshots, or short video demos to demonstrate your product in action visually. This helps investors see the product’s potential and functionality. Importance Conveying your product effectively is crucial because: Demonstrates Feasibility: Shows that you have a viable solution to the problem. Builds Credibility: Demonstrates your understanding of the market and user needs. Engages Investors: A compelling presentation captures interest and encourages investors to learn more. Examples Mint: Mint’s pitch deck described their personal finance tool by emphasizing how it simplifies money management. They highlighted key features such as budget tracking and financial goal setting, supported by screenshots of the app interface, making the value proposition clear and compelling. Market Opportunity The market opportunity slide is crucial in demonstrating your startup's potential for growth and profitability. Investors need to see that there is a significant and growing market for your product or service. Here’s how to effectively present this information: Market Size: Show the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM). These figures illustrate the overall market size and the portion your startup aims to capture. Growth Trends: Highlight industry trends that indicate market growth. This could include increasing adoption rates, technological advancements, or shifts in consumer behavior that favor your solution. Customer Segments: Identify and describe your target customer segments. Provide data on their demographics, needs, and purchasing behaviors. Competitive Landscape: Show the current state of the market, including major competitors and gaps that your startup can exploit. Use charts or graphs to illustrate market share distribution. Economic Indicators: Include relevant economic indicators, such as market growth rates, average customer spending, and profitability margins. These data points help quantify the opportunity. Importance The market opportunity slide is important because: Validates Potential: Demonstrates that there is a real and significant demand for your product. Attracts Investors: Investors are likelier to invest in startups operating in large and growing markets. Guides Strategy: This helps investors understand your strategic positioning and market entry plans. Examples WeWork: WeWork’s pitch deck presented the growing demand for flexible workspaces. They included data on the rise of freelancers, remote work trends, and the shift away from traditional office spaces, demonstrating a significant market opportunity. Business Model The business model slide is crucial for showing investors how your startup plans to generate revenue and achieve profitability. It provides a clear picture of the financial mechanics of your business, demonstrating that your venture is viable and potentially lucrative. Here’s what you should include: Revenue Streams: Detail the different ways your business will make money. This could include direct sales, subscription fees, licensing, advertising, or other revenue models. Pricing Strategy: Explain your pricing model and how it aligns with your revenue streams. Include any tiered pricing, freemium models, or volume discounts. Cost Structure: Outline your key costs, including fixed and variable expenses. This helps investors understand your cost base and how it scales with growth. Profit Margins: Provide data on expected profit margins. This shows how much of your revenue translates into profit after expenses. Customer Acquisition Cost (CAC): Present the cost of acquiring a new customer. This metric is crucial for understanding the efficiency of your sales and marketing efforts. Lifetime Value (LTV): Estimate the average revenue generated from a customer over the lifespan of their engagement with your business. LTV helps investors gauge long-term profitability. Break-even Analysis: Show when your startup is expected to become profitable. This includes the break-even point where total revenues equal total costs. Importance These data points are important because: Demonstrate Viability: Show that you have a realistic and thought-out plan for generating revenue. Build Credibility: Provide concrete financial metrics that back up your business strategy. Attract Investment: Help investors understand the financial potential and risk associated with your startup, making it easier for them to commit funds. Examples YouTube: In their early pitch decks, YouTube highlighted their ad-supported revenue model. They explained how they planned to monetize user-generated content through targeted advertising, showcasing potential ad revenue projections based on user engagement metrics. Go-to-Market Plan The go-to-market (GTM) plan slide outlines your strategy for launching your product and achieving market penetration. It's crucial because it shows investors how you plan to convert your vision into reality, driving adoption and growth. Here’s what you should include: Market Segmentation: Identify the specific segments of the market you will target first. Explain why these segments are your initial focus and how they will help you build momentum. Marketing Strategy: Describe your marketing tactics and channels, such as digital marketing, social media, content marketing, partnerships, and PR. Highlight how you will reach and attract your target audience. Sales Strategy: Explain your sales approach, including direct sales, online sales, channel partnerships, or a combination. Detail your sales process and how you will convert leads into customers. Distribution Channels: Outline the channels through which your product will be delivered to customers. This could include online platforms, retail partnerships, or direct shipping. Customer Acquisition: Provide a plan for acquiring and onboarding new customers. Include customer acquisition costs (CAC) and expected customer acquisition methods. Timeline and Milestones: Present a timeline of key milestones, such as product launch dates, marketing campaigns, and sales targets. This helps investors see your progress and plan for scaling. Importance The go-to-market plan is important because: Shows Preparedness: Demonstrates that you have a clear and actionable strategy for entering the market. Reduces Risk: Provides investors with confidence that you have thought through how to gain market traction, reducing perceived investment risk. Highlights Growth Path: Maps out how you will achieve growth, helping investors understand the potential return on investment. Examples Dropbox: Dropbox’s GTM plan focused on a viral growth strategy through their referral program, where users received additional storage for referring new users. This strategy effectively lowered customer acquisition costs and accelerated user adoption. Known Competitors Understanding your competitors is crucial for positioning your startup effectively in the market. This slide should provide an overview of the competitive landscape, showing investors that you are aware of existing alternatives and have a clear strategy to differentiate your product. Here’s what to include: Competitor Overview: List your main competitors, including direct and indirect ones. Briefly describe each, focusing on their strengths and market position. Competitive Analysis: Use a comparative table or chart to highlight key features, pricing, market share, and other relevant metrics. This visual aid helps investors quickly grasp how their competitors operate. Unique Value Proposition: Clearly articulate what sets your product apart. Highlight your unique features, benefits, or technological advancements that give you a competitive edge. Market Positioning: Explain how you position your product in the market relative to your competitors. Discuss your target audience and how your product better meets their needs. Barriers to Entry: Identify any barriers to entry you have established, such as patents, proprietary technology, or exclusive partnerships, which protect your market position from competitors. Importance Understanding your competitors and highlighting your unique advantages is important because: Informs Strategy: Demonstrates that you deeply understand the market and have strategically positioned your product to stand out. Builds Credibility: This shows investors that you are well-prepared and have completed your competitive landscape homework. Reduces Risk: This helps investors see that you have a plan to overcome competition, reducing perceived investment risk. Examples Uber: Uber’s pitch deck provided a clear overview of the transportation market, comparing its service to traditional taxis and other ride-sharing platforms. It emphasized its superior user experience, ease of use, and innovative pricing model. Financials and Exit Strategy The financials and exit strategy slide is vital for demonstrating the potential return on investment (ROI) to investors. This slide should detail your financial projections, funding requirements, and exit strategy. Here’s what to include: Financial Projections: Provide detailed forecasts of your revenue, expenses, and profits for the next 3-5 years. Include key financial metrics such as gross margin, net profit, and EBITDA. Funding Requirements: Specify how much funding you seek, what it will be used for, and how it will drive growth. Break down the use of funds into categories like product development, marketing, and operations. Break-even Analysis: Show when your startup is expected to break even and start generating profit. This helps investors understand the timeline for financial viability. Exit Strategy: Outline potential exit strategies, such as acquisition, merger, or IPO. Explain how and when you plan to "buy out" investors, providing them with a return on their investment. Importance Showing how you plan to buy out investors in the future is important because: Demonstrates ROI: Investors want to know how and when they will see a return on their investment. An exit strategy provides a clear path to achieving this. Reduces Risk: A well-defined exit strategy reduces the perceived risk by showing that you have thought through the end game and have realistic plans for achieving it. Builds Confidence: Financial projections and a clear exit strategy build confidence in your business acumen and the long-term viability of your startup. The Team The team slide is one of the most critical components of your pitch deck because it highlights the people behind the startup. Investors often invest in teams as much as they invest in ideas, believing that a strong, experienced, and capable team is more likely to execute the business plan successfully. Here’s what to include: Key Team Members: Introduce your core team members, including their names, titles, and roles within the company. Relevant Experience: Highlight each team member's relevant experience and expertise. Include past achievements, previous startups, industry experience, and any notable accomplishments. Complementary Skills: Show how the team’s skills complement each other. This demonstrates that your team can address various aspects of the business. Advisors and Board Members: If applicable, include key advisors and board members who bring additional expertise and credibility to the team. Importance Showing how your team is uniquely qualified to solve the problem is important because: Builds Credibility: Demonstrates that your team has the expertise and experience to execute the business plan and overcome challenges. Instills Confidence: Investors gain confidence knowing that the team can deliver on the vision and achieve the startup’s goals. Highlights Leadership: Emphasizes the leadership and strategic thinking behind the startup, making it more attractive to investors. Mitigates Risk: A strong, competent team reduces the perceived risk of the investment, as investors trust that experienced professionals are steering the company. Why Now The "Why Now" slide is essential for conveying the urgency and timeliness of your investment opportunity. This slide should explain why the current moment is the perfect time for your startup to succeed and why investors should act quickly to seize this opportunity. Here’s what to include: Market Trends: Highlight current market trends that favor adopting your product or service. This could include technological advancements, regulatory changes, or shifts in consumer behavior. Industry Growth: Provide data on your industry's rapid growth, demonstrating that now is the time to enter the market. Competitive Landscape: Explain how the competitive landscape is evolving and why your startup is uniquely positioned to capitalize on this moment. Urgency Factors: Identify any factors that make immediate action crucial, such as a limited window of opportunity, first-mover advantage, or a pressing market need. Recent Developments: Mention recent developments or milestones your startup has achieved that indicate readiness for rapid growth, such as product launches, strategic partnerships, or pilot program successes. Importance Showing that the investment is timely and the right choice is important because: Creates Urgency: Investors are more likely to act quickly if they see a time-sensitive opportunity. Demonstrating urgency helps accelerate the decision-making process. Enhances Relevance: Proving that your startup is aligned with current trends and market needs makes your business proposition more relevant and compelling. Reduces Risk: Investors feel more confident investing in a startup that is positioned to take advantage of current market conditions, reducing perceived risk. Capitalizes on Momentum: Highlighting why now is the ideal time to invest shows that your startup is poised for growth, leveraging momentum to drive success. Examples Slack: Slack’s pitch deck showcased the shift towards remote work and the growing need for effective team communication tools, demonstrating the immediate relevance and necessity of their product. Connect, Fundraise, and Update Your Investors with Visible Putting together a pitch deck is only the start of a successful fundraise. You need to find the right investors, manage conversations, and distribute your pitch deck. To get started with your next fundraise check out our investor database to help you find your investors. Looking for best practices for sharing your pitch deck? Check out our template for sharing your pitch deck here. Related resource: Tips for Creating an Investor Pitch Deck

Current Investment Landscape in 2024 The investment landscape for e-commerce startups in 2024 remains robust, albeit more competitive than in previous years. VCs continue to invest heavily in the sector, but the selection criteria have become more stringent due to evolving market dynamics and economic conditions. Key Trends and Changes 1. Economic Factors The global venture capital market saw a significant downturn in 2023, with a 35% year-over-year investment decrease​​. Although the market is gradually recovering, the total venture funding for Q1 2024 reached $66 billion, a 6% increase from the previous quarter but still a 20% decrease from the same period last year​​. Economic uncertainties, including geopolitical tensions and inflation, continue to impact investor confidence, leading to a more cautious investment approach​​​​. 2. Selectivity and Profitability With the maturing of the e-commerce market, easy growth opportunities have diminished. Startups need a clear path to profitability to attract VC attention. Investors increasingly favor startups that demonstrate strong financial health and sustainable business models​​​​. 3. Market Concentration Major players like Amazon and Alibaba continue to dominate the global e-commerce landscape. This concentration makes it challenging for new startups to compete unless they offer unique value propositions or operate in niche markets​​​​. 4. Emerging Opportunities Despite these challenges, significant opportunities remain, especially in emerging areas such as social commerce, live commerce, and B2B e-commerce. These segments are drawing considerable interest due to their potential for growth and innovation​​​​. 5. Patterns Guiding VC Investments Omnichannel Retail: Integrating online and offline shopping experiences remains a strong focus. VCs are investing in startups that enhance customer experiences through seamless omnichannel strategies. International Expansion: Startups with plans to expand into emerging markets like Asia and Latin America are attractive to VCs. These regions offer substantial growth potential due to increasing internet penetration and digital adoption​​. Direct-to-consumer (D2C) Brands: D2C brands that leverage social media and direct marketing channels continue to be prime candidates for funding. The ability to build direct customer relationships and generate data-driven insights makes these startups particularly appealing​​. Subscription Models: The stability of recurring revenue models remains attractive. Companies that successfully implement subscription services, offering consistent value to consumers, are likely to draw VC interest​​. Related resource: Top Trends and Leading VCs Investing in D2C Brands: A Comprehensive Guide for 2024 6. What Investors Want Consistent Growth: Investors seek startups with well-defined strategies that show clear scalability and robust revenue pathways. Powerful Teams: The focus is not just on the ideas but on the execution. Startups with solid and experienced teams are more likely to secure funding. Market Analysis: It is crucial to have a deep understanding of the market, competitors, and a unique selling point. To attract investors, startups must demonstrate thorough market research and a clear competitive advantage. Evolving E-commerce The future of e-commerce is set to combine the spontaneity and excitement of offline shopping with the convenience and personalization of online platforms. By leveraging AI, AR, and blockchain technologies, retailers aim to create more engaging, efficient, and sustainable shopping experiences. Offline Discovery and Online Options Recent advancements in AI and technology are significantly enhancing the offline-to-online shopping experience. Retailers are now leveraging AI to create personalized shopping experiences that mimic the serendipity of in-store discovery. AI algorithms analyze past purchases and browsing behaviors to offer tailored product recommendations, making online shopping more intuitive and engaging​​​​. One notable development is the use of augmented reality (AR) to bridge the gap between offline and online shopping. For instance, AR apps allow customers to visualize how products like furniture or clothing will look in their homes or on their bodies before making a purchase. This technology enhances the shopping experience and reduces the likelihood of returns​​. Future of E-commerce (Three Phases) the future of e-commerce is set to combine the spontaneity and excitement of offline shopping with the convenience and personalization of online platforms. By leveraging AI, AR, and blockchain technologies, retailers aim to create more engaging, efficient, and sustainable shopping experiences. 1. Discovery In 2024, new platforms and methods are revolutionizing product discovery. Social media channels like TikTok and Instagram are at the forefront, utilizing short-form videos and influencer marketing to introduce products to consumers. These platforms are essential for brands to reach new audiences and drive engagement through entertaining and informative content​​​​. Additionally, AI-driven recommendation engines are becoming more sophisticated. E-commerce sites like Amazon and Alibaba use AI to suggest products based on real-time data, such as trending items and customer preferences, enhancing the discovery phase​​. 2. Conversion Live shopping has emerged as a powerful tool for converting interest into sales. Platforms like Facebook, Instagram, and dedicated live shopping apps enable real-time interactions between sellers and buyers. This format allows customers to ask questions, see products in action, and make purchases instantly, creating a sense of urgency and trust​​. Innovations in virtual fitting rooms and chatbots also play a crucial role in the conversion phase. Virtual fitting rooms use AR to help customers see how clothes fit without trying them on physically. AI-powered chatbots provide instant customer support, guiding shoppers through their purchasing journey and promptly addressing any concerns​​. 3. Returns & Resale Improving return management and promoting sustainable shopping are critical in 2024. AI is now used to predict return patterns and optimize inventory management, ensuring returned products are restocked efficiently. Some companies are integrating blockchain technology to enhance transparency in the returns process, providing customers real-time updates on their return status​​​​. The resale market is also gaining traction, with major brands like Target and Gucci entering the space. These companies use tech-powered platforms to facilitate the sale of secondhand goods, appealing to environmentally conscious consumers and promoting a circular economy​​. AI-driven platforms assess the condition of returned items and determine their resale value, making the process seamless and efficient​​. VCs Investing in E-commerce and Marketplaces FJ Labs As put by the team at FJ Labs, “Marketplaces are the tool by which we achieve our purpose, the means to our end. We believe in entrepreneurs as solutionists to the world’s greatest challenges and VCs as the means to enabling all the amazing founders addressing the challenges of our time. At FJ Labs, we believe in human ingenuity and back it with the full weight of our resources and knowhow. This is our ultimate mission and the reason we invest in so many companies. Location: New York, United States About: FJ Labs is a stage-agnostic New York-based investment firm with a global focus. FJ Labs focuses on marketplaces and consumer-facing startups. Thesis: FJ Labs is a stage-agnostic New York-based investment firm with global focus. FJ Labs focuses on marketplaces and consumer facing startups. Investment Stages: Seed, Series A, Series B, Series C, Growth DN Capital About: DN Capital is a global early-stage venture firm, founded in 2000 and based in London, Berlin and San Francisco. We focus on Seed, Series A and select Series B opportunities in Europe and North America. We believe great tech companies can emerge across any vertical, but we focus our attention on four: Software, Fintech, Marketplaces and Consumer Internet. We have consistently backed category leaders in these verticals such as Shazam, Auto1, HomeToGo, Purplebricks, Endeca and Remitly. We use our extensive global network and financial expertise to give portfolio companies the best possible platform for growth. We are always excited to receive business plans from entrepreneurs seeking capital. So, if you have a business we need to know about, then send us your materials here. Thesis: We invest in Seed, Series A and growth-stage businesses and can support companies with up to €20m of capital. Location: Menlo Park, California Investment Stages: Pre-Seed, Seed, Series A Commerce Ventures About: E-commerce Ventures is a venture capital firm focusing on investments in the e-commerce, retail, FinTech and Insurance sectors. Thesis: We invest across a range of sub-sectors that we refer to collectively as the Commerce Continuum. These sub-sectors include retail technology, payment technology, banking technology, and insurance technology. Location: San Francisco, California Investment Stages: Seed, Series A, Series B, Growth Greenoaks About: Greenoaks is a global internet investment firm that operates in the commercial services, health tech, and B2B sectors. Location: San Francisco, California Investment Stages: Seed, Series A, Series B, Series C, Growth Adevinta Ventures About: Adevinta Ventures is the corporate VC leg within Adevinta (formerly Schibsted Marketplaces) Thesis: At Adevinta, we believe everything and everyone has a purpose in life. Our portfolio of digital brands unlock the full value in every person, place and thing by creating perfect matches on the world’s most trusted marketplaces. Location: Barcelona, Spain Investment Stages: Seed, Series A, Series B Cabra VC About: Adevinta Ventures is the corporate VC leg within Adevinta (formerly Schibsted Marketplaces) Thesis: At Adevinta, we believe everything and everyone has a purpose in life. Our portfolio of digital brands unlock the full value in every person, place and thing by creating perfect matches on the world’s most trusted marketplaces. Location: Barcelona, Spain Investment Stages: Seed, Series A, Series B Piton Capital About: Founded in 2010, Piton Capital is a venture capital and growth equity firm headquartered in London and investing in businesses with network effects. We make investments ranging from €200k to €20m and since inception have invested in over 50 businesses, primarily in Europe. Piton focuses exclusively on network effects businesses as this provide one of the few moats or forms of defensibility to achieve dominance. Thesis: Investing in companies with network effects. Location: London, England, United Kingdom Investment Stages: Series A, Series B, Early Stage Dutch Founders Fund About: The Dutch Founders Fund (DFF) is an early-stage VC that primarily invests in marketplaces and network effects across Europe. Our fund is founded by founders, for founders. We look beyond spreadsheets and resolve early-stage growth-pains with lightning speed. Ready to scale together? Submit your pitch deck to basrieter@dutchfoundersfund.com Location: Amsterdam, Netherlands Investment Stages: Early Stage, Pre-Seed, Seed GGV Capital As put by their team, “GGV Capital is a global venture capital firm focused on multi-stage, sector-focused investments. Recognizing that the talent to build great companies can come from anywhere, the firm invests in founders building category-leading companies around the world.” Location: Menlo Park, California, United States About: GGV Capital is a multi-stage venture capital firm based in Silicon Valley, Shanghai, and Beijing. We have been partnering with leading technology entrepreneurs for the last 18 years from seed to pre-IPO. With $3.8 billion in capital under management across eight funds, GGV invests in globally minded entrepreneurs in social/internet, commerce/new retail, frontier tech, and enterprise/SaaS. GGV has invested in over 280 companies with more than 30 companies valued at more than $1 billion. Investment Stages: Series A, Series B Kleiner Perkins As put by the team at Kleiner Perkins, “For five decades we have partnered with intrepid founders to build iconic companies that made history. Today, Kleiner Perkins continues that legacy, investing in founders with bold ideas that span industries and continents, partnering with them from inception to IPO and beyond to maximize the potential of their ideas… and make history.” Location: Menlo Park, California, United States About: Kleiner Perkins is a venture capital firm specializing in investing in early-stage, incubation, and growth companies. Thesis: To be the first call for founders who want to make history and to partner with them as company builders in pursuit of that goal. Investment Stages: Series A, Series B, Growth Lyra Ventures As put by the team at Lyra Ventures, “We are venture capitalists investing in companies that use innovative technology to reinvent the business of fashion and retail. Our team and network of advisors have deep domain expertise in our industries of focus. We channel this knowledge into each of our investments, working alongside our founders, particularly early on in their company’s lifecycle.” Location: Singapore, SG About: We are venture capitalists investing in companies that use innovative technology to reinvent the business of fashion and retail. Our team and network of advisors have deep domain expertise in our industries of focus. We channel this knowledge into each of our investments, working alongside our founders, particularly early on in their company’s lifecycle. Thesis: We support visionary and disciplined entrepreneurs who are transforming the industries of fashion and retail via the creation of high growth and resilient businesses. Investment Stages: Seed, Series A 14W As put by the 14W Team, “Founded in 2010, 14W is a global venture capital firm with offices located in New York, London, and Madrid. The firm seeks to invest in the consumer internet, e-commerce, consumer packaged goods, marketplace, and media sectors.” Location: New York, New York, United States About: 14W is a venture capital firm specializing in consumer internet, marketplace, ecommerce, CPG, and media. Investment Stages: Seed PayU Location: Poznań, Wielkopolskie, Poland About: PayU is a leading financial services provider in global growth markets. We enable billions of people to buy and sell online. Thesis: One of the leading fintech investors globally, combining the expertise of high growth companies with our own unique local knowledge and technology to ensure that our customers have access to the best financial services. Investment Stages: Seed, Series A, Series B Act Venture Capital As put by the team at Act, “We believe great companies are built by great founders, not investors. We have never been the loudest venture firm. We don’t want to add to the noise of VCs making it about them – it is about the founders and the problems they are trying to solve.” Location: Dublin, Ireland About: ACT is Ireland’s leading independent venture capital company and they have a very experienced and successful investment team. They provide capital to growth-oriented private companies in the range of €750K to €15M. Larger sums can be provided in syndication with their institutional investors. In December 2002, ACT closed its third fund at €170 million. ACT now manages €350 million through a number of venture capital funds. Thesis: Investing in people, markets and technology. Investment Stages: Seed, Series A, Series B, Series C, Growth Activant Capital As put by their team, “We typically invest when two things come together. First, the company has the potential to achieve escape velocity and transform an entire industry. Second, we believe the founders can lead the company through hyper growth, and our support can significantly increase the probability of this success.” Location: Connecticut, United States About: Act VC is an early-stage venture capital firm that partners with founders starting out, and established teams scaling their growth. We have raised €487m across multiple funds to support this goal. We look for innovative, category-defining companies in large markets. We help founders build and scale these leveraging the experience of backing over 200 founders before. We work closely with them in this process. Over the past 25 years, we have invested in over 120 companies and built a broad global network. Investment Stages: Series A, Series B, Series C Ascend Location: Washington, United States About: Pre-seed investor in marketplace, e-commerce/D2C, and B2B software startups in the Pacific Northwest. Investment Stages: Pre-Seed A.Capital As put by their team, “Unlike traditional VCs, we do not have ownership thresholds. We work with entrepreneurs to determine how much to invest, and at what valuation, based on what their company needs, not based on historical VC financial models. This reduces overall dilution while still leaving room for value-added partners.” Location: Menlo Park, California, United States About: a_capital provides resources and counsel to the creators, inventors and entrepreneurs who are building a new future. Thesis: Investing in consumer and enterprise technology companies. Investment Stages: Seed, Series A, Series B, Series C, Growth Lerer Hippeau As put by their team, “Lerer Hippeau is an early-stage venture capital fund founded and operated in New York City. We invest in good people with great ideas who redefine categories — and create new ones entirely.” Location: New York About: Lerer Hippeau is a seed and early-stage venture capital fund based in New York City. Investment Stages: Lerer Hippeau invests in companies from seed to Series C Tandem Capital About: Tandem Capital is a seed-stage venture fund and studio helping drive go-to-market innovation. Our studio helps companies craft business strategies, build brands, acquire customers and extend distribution channels. Our dedicated studio team engages deeply with a company’s business, to help find product-market fit and accelerate early growth. The studio provides support primarily to businesses selling products and services directly to individuals, including: connected devices, consumer packaged goods and subscription services. Thesis: Our fund backs stellar teams whose innovation extends beyond their products into how they acquire their customers, develop their distribution channels and build their overall brands. Tandem leads and co-leads rounds with up to $500K in pre-seed and up to $2M in seed funding. We reserve a significant amount of capital in order to support our founder long-term through follow-on funding. Location: San Mateo, California Investment Stages: Pre-Seed, Seed Launch Location: San Francisco, California, United States About: We are on a mission here at LAUNCH to support founders and inspire innovation. Our small team of rebels put on the largest startup conference in the world, the LAUNCH festival, the podcast This Week In Startups and we run the LAUNCH Incubator. We invest millions of dollars into 40 promising founders a year, some of which go on to change the world. Most of these founders spend 12 weeks in our very intense -- but fabulously fun -- accelerator. Investment Stage: Accelerator Imag/nary Ventures Location: New York, United States About: Founded by Natalie Massenet and Nick Brown, Imaginary Ventures is venture capital firm that invests in early–stage opportunities at the intersection of retail and technology in Europe and the US. Investment Stage: Seed, Series A, Series B Act One Ventures Location: Seattle, Washington, United States About: Seed stage fund focused on enterprise software and research from LA Universities. We believe in community, diversity, and Los Angeles. Thesis: Investing in capital-efficient companies with excellent founder-market fit Investment Stage: Pre-Seed, Seed Acequia Capital Location: Seattle, Washington, United States About: Acequia Capital is focused on advising early stage founders and teams that have passion and conviction about the power of software. Investment Stage: Pre-Seed, Seed Arbor Ventures Location: Singapore About: Founded in 2013, Arbor Ventures is a global investment firm focused on companies that leverage advanced technologies such as artificial intelligence, cloud computing, composable service offerings and blockchain applications to facilitate, broaden or fundamentally change the way financial services are served, consumed, and managed. Arbor uses its global vantage point, extensive network and deep sector knowledge to identify key trends and partner closely with leading entrepreneurs to build transformational companies. Investment Stage: Seed, Series A, Series B, Series C BECO Capital Location: Dubai, United Arab Emirates About: BECO Capital provides growth capital and hands-on operational support for early-stage technology companies. Investment Stage: Seed, Series A, Series B Additional Resources 4 trends that will define e-commerce in 2022 Personalization and zero-party data become critical. E-commerce embraces web3 and NFTs, but what will that look like? Live shopping goes mainstream. Slow but gradual improvement to the supply chain. Jungle Scout is an eCommerce platform that helps entrepreneurs leverage Amazon to sell products. Their platform offers customers solutions to manage inventory, conduct product research, find suppliers, and more. Though the company is mainly Amazon-centric now, they are eyeing expansion to cover solutions for other online retail platforms, such as Walmart.com. Consumer Trends Report | Q1 2022 The State of the Amazon Seller Society Brands– Society Brands embraces the entrepreneur and provides them with a network of support and a rich pool of industry-leading resources to help them take their brands to the next level and create real value for a great exit. Elevate Brands– A New York- and Austin-based startup that acquires and runs third-party Amazon merchants. Berlin Brands Group (BBG)- One of the new wave of e-commerce startups hoping to build lucrative economies of scale around buying up smaller brands that sell on marketplaces like Amazon and using technology to run and scale them more efficiently. 20 Fast-Growing Ecommerce Startups (2022) Our Guide to E-Commerce Metrics (with Google Sheet Template) Key Metrics to Track and Measure In the eCommerce World Video: Shopify Ecommerce Dashboard Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors. After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here. Related resource: 14 FinTech Startups Shaping the Future of Finance

Starting a new venture involves navigating numerous challenges, one of which is effectively communicating your business vision. Two essential tools in this process are the business plan and the pitch deck. While both are crucial, they serve different purposes and are used at different stages of your startup journey. In this article, we'll explore the key differences between business plans and pitch decks, what each includes, the level of detail required, the creation process, and specific use cases. Understanding these distinctions will help you use each tool to your advantage, ensuring you’re well-prepared to impress investors and guide your business to success. Business Plans vs Pitch Decks - An Overview When raising capital for your startup, both business plans and pitch decks are essential tools, each serving distinct purposes. A business plan is a detailed document outlining your business’s objectives, strategies, market analysis, and financial projections. It provides a comprehensive roadmap for your business, guiding long-term strategic decisions and demonstrating viability to stakeholders such as banks and grant providers. In contrast, a pitch deck is a concise, visually-driven presentation designed to quickly capture the interest of potential investors. It typically includes key highlights of your business, such as the problem you’re solving, your solution, market opportunity, business model, and team. The goal is to secure meetings and generate interest from venture capitalists, angel investors, and during startup competitions. Both tools are crucial in fundraising, but they are used at different stages and for different audiences. Business Plan A business plan is a comprehensive document that outlines your business's objectives, strategies, market analysis, organizational structure, and financial projections. Its primary purpose is to serve as a detailed roadmap for your business, guiding strategic decisions and demonstrating the viability and potential of your venture to various stakeholders. The business plan is essential for several key reasons: Securing Funding: It provides potential investors, banks, and grant providers with an in-depth understanding of your business model, financial forecasts, and strategic plans, helping to secure necessary funding. Strategic Planning: It acts as a guide for internal decision-making, helping founders and management teams align on goals and strategies. Attracting Talent: A well-articulated business plan can attract co-founders, key hires, and partners by clearly outlining the business's vision and potential. Use cases for a business plan include applying for loans, pitching to investors, and guiding internal strategy development. Each of these scenarios relies on the detailed and structured information that a business plan provides, making it an indispensable tool for startup founders. Related resource: Startup Business Plan Pitch Deck A pitch deck is a concise, visually-driven presentation designed to quickly capture the interest of potential investors. It typically consists of around 10-20 slides that highlight the key aspects of your business, such as the problem you’re solving, your solution, market opportunity, business model, and team. The primary purpose of a pitch deck is to provide a snapshot of your business that is engaging and easy to understand, aiming to secure meetings and generate interest from potential investors. Unlike the comprehensive nature of a business plan, a pitch deck is meant to be high-level and visually appealing, making it an effective tool for initial presentations. Use cases for a pitch deck include: Investor Meetings: Pitching to venture capitalists and angel investors to secure funding. Startup Competitions: Presenting at demo days and competitions to gain exposure and interest. Partnership Discussions: Engaging potential partners and stakeholders by providing a clear and compelling overview of your business. The pitch deck serves several important functions: Generating Interest: It is designed to grab the attention of venture capitalists, angel investors, and other stakeholders, encouraging them to seek more detailed information. Communicating Vision: The pitch deck helps convey your business idea succinctly, showcasing the problem you’re solving, your solution, and your unique selling points. Facilitating Meetings: A compelling pitch deck can lead to follow-up meetings, providing opportunities to delve deeper into your business plan and financials. Related resource: Building Your Pitch Deck What is Included in Each One Understanding the structure and key components of business plans and pitch decks is crucial for effectively using each tool in your fundraising efforts. A detailed and comprehensive business plan covers elements such as market analysis, financial projections, and strategic planning. In contrast, a pitch deck is concise and visually engaging, highlighting key aspects like the problem you’re solving, your solution, and your business model. This section will provide an overview of what to include in each, highlighting the differences to help you tailor them to your needs. Business Plan A business plan is a detailed and comprehensive document that covers various aspects of your business. Key components typically include: Executive Summary: A brief overview of your business, including your mission statement, product or service offering, and basic information about your company’s leadership, employees, and location. Company Description: Detailed information about your business, including the problems you’re solving, your target market, and what makes your business unique. Market Analysis: An examination of your industry, market size, expected growth, and competitive landscape. Organization and Management: An outline of your business’s organizational structure, details about the ownership, and profiles of your management team. Products or Services Line: Detailed descriptions of your products or services, including the lifecycle of each product, and how they benefit your customers. Marketing and Sales Strategy: Your plan for reaching your target market, including pricing, advertising, and sales strategies. Funding Request: If you’re seeking funding, this section outlines your current funding requirements, future funding requirements over the next five years, and how you intend to use the funds you receive. Financial Projections: Detailed financial forecasts, including income statements, cash flow statements, and balance sheets for the next three to five years. Appendix: An optional section that includes resumes, permits, lease agreements, legal documentation, and other pertinent information. Pitch Deck A pitch deck is a more concise and visual presentation focusing on highlighting your business's key aspects. Key components typically include: Title Slide: The name of your business and a tagline or short mission statement. Problem Statement: A description of the problem your business aims to solve. Solution: An overview of your product or service and how it addresses the problem. Market Opportunity: Information on your target market and the potential market size. Business Model: An explanation of how your business will make money. Traction: Evidence of your business’s progress and momentum, such as sales figures, customer testimonials, or user growth metrics. Competition: An analysis of your competitors and your competitive advantages. Go-to-Market Strategy: Your plan for attracting and retaining customers. Financials: High-level financial projections and key metrics. Team: Information about your founding team and key advisors. Use of Funds: How you plan to use the investment you’re seeking. Closing Slide: A summary of your pitch and a call to action, often including your contact information. Related resource: Key Slides In Your Pitch Deck Each of these components plays a crucial role in communicating the essential aspects of your business to different audiences. While the business plan is thorough and detailed, the pitch deck is designed to be engaging and to the point, helping you quickly capture the interest of potential investors. What Level of Detail is Needed for Each One? Business plans and pitch decks differ significantly in the level of detail they require. Business plans are comprehensive and detailed, covering strategic projections and in-depth analyses. In contrast, pitch decks are high-level, focusing on engaging visuals and key highlights to quickly capture investor interest. Business Plan A business plan requires a high level of detail to comprehensively outline your business’s strategic vision, operational structure, and financial projections. Each component must be thoroughly developed to provide a clear roadmap for the business and demonstrate its potential to stakeholders. Here's a breakdown of the required level of detail for each key component: Executive Summary: This section should offer a concise yet comprehensive snapshot of your business, including your mission statement, the products or services you offer, and basic company information such as leadership, employees, and location. While brief, it should be compelling enough to attract further interest. Company Description: This part should delve deeply into your business, explaining the problems you're solving, your target market, and what makes your business unique. It should provide a clear picture of your business’s purpose and the value it offers to customers. Market Analysis: This section should include in-depth research on your industry, including market size, expected growth, and trends. A detailed competitive analysis is also crucial, highlighting your competitors' strengths and weaknesses and how you plan to differentiate your business. Organization and Management: Provide detailed profiles of your management team, including their backgrounds, expertise, and roles within the company. An organizational structure chart can be helpful here, showing how different roles and departments interrelate. Products or Services Line: Offer detailed descriptions of your products or services, including their lifecycle, development stages, and benefits to customers. Explain how your offerings meet the needs of your target market and any plans for future development or expansion. Marketing and Sales Strategy: This section should outline your strategies for reaching your target market, including pricing models, advertising plans, sales tactics, and distribution channels. Be specific about how you will attract and retain customers, including any partnerships or collaborations. Funding Request: If you are seeking funding, clearly outline your current and future funding needs, specifying how much you need, how you plan to use the funds, and any future funding requirements over the next five years. Provide a clear plan for how the funds will help achieve your business goals. Financial Projections: Provide detailed financial forecasts, including income statements, cash flow projections, and balance sheets for at least the next three to five years. This section should demonstrate your business’s financial viability and growth potential, with assumptions clearly stated. Appendix: Include any additional documents that support your business plan, such as resumes, permits, legal documentation, market research data, and any other relevant materials. The appendix should provide supporting evidence for the claims and projections made in your business plan. Each of these components should be well-researched and thoroughly explained, offering a clear and detailed picture of your business and its potential. A comprehensive business plan not only helps in securing funding but also guides strategic decision-making and helps attract key partners and talent. Pitch Deck A pitch deck requires a concise yet engaging level of detail to capture the interest of potential investors and stakeholders effectively. Each component should be clear, visually appealing, and focus on the key highlights of your business. Here’s an outline of the necessary components and the level of detail required: Title Slide: Include your business name, logo, and a brief tagline or mission statement. This slide should set the tone and provide a quick grasp of your business identity. Problem Statement: Clearly and succinctly describe the problem your business aims to solve. Use visuals or anecdotes to illustrate the problem’s significance and relevance to your target market. Solution: Provide an overview of your product or service and explain how it addresses the problem. Highlight the unique aspects of your solution and how it stands out from existing alternatives. Market Opportunity: Present key information about your target market, including market size, growth potential, and trends. Use charts or graphs to make the data visually compelling and easy to understand. Business Model: Explain how your business will make money. Include details on your revenue streams, pricing strategy, and any monetization plans. Keep it straightforward but comprehensive enough to show viability. Traction: Highlight your business’s progress and milestones. This could include sales figures, user growth, partnerships, or any significant achievements. Use visuals like charts or graphs to showcase your momentum. Competition: Provide a brief analysis of your competitors and articulate your competitive advantages. Use a comparison chart to highlight how your business outperforms or differentiates from others in the market. Go-to-Market Strategy: Outline your plan for attracting and retaining customers. Include marketing and sales strategies, distribution channels, and any partnerships that will help you reach your target market effectively. Financials: Summarize your key financial projections and metrics. Include revenue forecasts, profit margins, and break-even analysis. Use simple charts or graphs to make the data accessible and impactful. Team: Introduce your founding team and key advisors. Highlight their relevant experience and roles within the company. Use photos and brief bios to humanize your team and build credibility. Use of Funds: Explain how you plan to use the investment you’re seeking. Provide a clear and specific breakdown of how the funds will be allocated to drive growth and achieve your business goals. Closing Slide: Summarize your pitch and include a call to action. Provide your contact information and invite investors to follow up for more detailed discussions. Each component should be crafted to deliver maximum impact with minimal text, using visuals to convey key points effectively. The goal is to engage your audience, provide a compelling snapshot of your business, and secure further interest or meetings. What Does It Take to Create Each One? Creating a business plan and a pitch deck requires different approaches due to their distinct design, data, and storytelling requirements. Understanding the process for building each will help you allocate the necessary resources and time effectively. Business Plan Building a business plan is a detailed and collaborative effort that involves: Extensive Research: In-depth market analysis, competitive landscape assessment, and financial forecasting. Cross-Department Collaboration: Input from finance, marketing, operations, and management teams to ensure accuracy and comprehensiveness. Detailed Documentation: Crafting a thorough narrative with strategic projections and detailed analyses. The process is time-intensive, typically taking several weeks to a few months, depending on the business complexity and data availability. Pitch Deck Creating a pitch deck is a more streamlined process that emphasizes: High-Level Research: Gathering essential data on market size, competition, and key financial metrics. Visual Design: Collaborating with designers to create engaging and visually appealing slides or using templates that make designing easier such as canva or pitch. Concise Storytelling: Developing a compelling, succinct narrative highlighting the business’s value proposition and growth potential. This process is quicker, usually taking a few days to a couple of weeks, depending on the need for iterations and design work. Understanding these differences ensures you allocate the right resources and time for each document, aligning with their specific purposes and audiences. Use Cases for Business Plans and Pitch Decks Understanding when to use a business plan versus a pitch deck is crucial for effectively communicating your business vision and securing stakeholder support. Here are specific situations where each document would be most effective. Business Plan Securing Bank Loans: A detailed business plan is essential when applying for a bank loan. It provides lenders with comprehensive information about your business model, financial projections, and market analysis, demonstrating your ability to repay the loan and manage financial responsibilities effectively. Internal Strategic Planning: A business plan guides internal decision-making and strategic planning. It helps align the management team on long-term goals, operational strategies, and resource allocation, ensuring everyone is working towards the same objectives. Attracting Key Hires and Partners: A well-structured business plan can attract top talent and potential business partners by clearly outlining the business’s vision, growth potential, and strategic direction. It provides a detailed understanding of the company’s mission and future prospects, making it an attractive opportunity for skilled professionals and collaborators. Pitch Deck Investor Meetings: A pitch deck is perfect for pitching to venture capitalists and angel investors. Its concise, visually engaging format quickly captures the interest of potential investors, providing an overview of your business, the problem you’re solving, and your market opportunity, leading to follow-up meetings and deeper discussions. Startup Competitions: During startup competitions and demo days, a pitch deck is essential. It succinctly presents your business idea, traction, and competitive edge, helping you stand out in a crowded field and attract potential investors or partners who attend these events. Initial Partnership Discussions: When initiating discussions with potential partners, a pitch deck effectively communicates your business’s value proposition and strategic fit. It offers a compelling snapshot of your business, encouraging partners to explore collaboration opportunities further. By understanding these use cases, you can strategically utilize business plans and pitch decks to engage different audiences and achieve your business objectives effectively. Tailor Your Business Plan and Pitch Decks to Your Needs with Visible Both business plans and pitch decks are essential tools for startup founders, each serving distinct purposes and requiring different levels of detail. A business plan provides a comprehensive roadmap for strategic planning and securing funding, while a pitch deck is a concise, visually engaging presentation designed to capture investor interest quickly. Share your pitch deck confidently with Visible, a purpose-built platform for fundraising. Our pitch deck sharing tool is completely integrated with our fundraising CRM and investor updates platform. Founders can also leverage their brand by hosting decks from their own domain and highlighting brand colors. Try Visible free for 14 days and start strengthening your investor connections.

Mastering the art of the pitch is crucial for any startup founder. Whether seeking investment, landing new customers, or forming strategic partnerships, having the right pitch deck can make all the difference. In this article, we'll explore six essential types of pitch decks every startup needs, each tailored to different audiences and situations. Discover how to craft compelling decks that resonate and drive results, from elevator pitches to detailed investor presentations. Prepare to elevate your pitching game and ensure you're always prepared to impress. Reasons to Have Multiple Pitch Decks As a startup founder, you’ll find yourself pitching your business to various audiences with unique interests and needs. Relying on a single pitch deck for all these situations can be a major drawback. Here’s why having multiple pitch decks is crucial for your success: Tailoring Your Message: Different audiences care about different aspects of your business. Investors want to see your financials, market opportunity, and growth strategy. Potential partners are interested in synergies and shared goals, while customers focus on how your product solves their problems. A one-size-fits-all approach dilutes your message, making it less impactful. By creating tailored decks, you can emphasize the most relevant information for each audience. Maximizing Engagement: When your pitch resonates with the audience's specific concerns, you’re more likely to keep their attention and spark interest. A well-targeted pitch shows that you understand their priorities and have taken the time to address them directly. This level of personalization can significantly increase your chances of securing investment, partnerships, or sales. Building Credibility: A customized pitch deck demonstrates professionalism and preparedness. It signals your audience that you’re serious about your business and have done your homework. This can build trust and credibility, essential factors when persuading investors or partners to commit to your venture. Adapting to Different Scenarios: Pitching is not a one-time event. You’ll need to present your business in various contexts, from quick elevator pitches to detailed investor meetings and product demos. Each scenario requires a different approach. Multiple pitch decks allow you to be agile and adaptable, ready to impress no matter the situation. Related resource: Board Deck Types of Pitch Decks Your Team Should Prepare To navigate the diverse landscape of pitching scenarios, your startup needs a suite of specialized pitch decks. Each deck serves a unique purpose and is tailored to resonate with specific audiences. Tailoring your pitch is crucial because different stakeholders have different priorities and concerns. Preparing specific decks for various situations ensures that your message is always relevant, compelling, and impactful. Each pitch deck allows you to focus on the aspects that matter most to your audience, making your presentation more effective and persuasive. Here’s a brief introduction to the types of pitch decks your team should prepare: Elevator Pitch Deck: This concise deck is designed for quick, impromptu pitches, where you need to grab attention and spark interest within a few minutes. Investor Pitch Deck: Tailored for potential investors, this deck delves deep into your business model, market opportunity, financial projections, and growth strategy. Sales Pitch Deck: Created to persuade potential customers or clients, this deck highlights the benefits and features of your product or service. Partnership Pitch Deck: This deck focuses on forming strategic alliances by highlighting mutual benefits, synergies, and shared goals. Demo Pitch Deck: A highly visual and interactive deck, used to showcase your product in action, emphasizing its functionality and user experience. Customer Pitch Deck: Aimed at converting leads into customers, this deck addresses customer pain points and presents your solution convincingly. In the following sections, we’ll dive deeper into each type of pitch deck, exploring their purposes, key components, and when to use them. Elevator Pitch Deck Definition: An elevator pitch deck is a concise and highly focused presentation designed to quickly communicate the essence of your startup. It typically consists of a few slides and can be delivered in the time it takes to ride an elevator—around 30 seconds to 2 minutes. Purpose: The primary purpose of the elevator pitch deck is to grab the audience's attention and spark their interest in your startup. It serves as an introduction to your business, providing just enough information to make the listener want to learn more. Key Components: Introduction: A brief introduction to your startup, including the name and tagline. Problem Statement: A clear and concise explanation of the problem your startup addresses. Solution: An overview of your product or service and how it solves the problem. Value Proposition: A summary of the unique value your startup offers. Call to Action: A prompt for the next steps, such as setting up a meeting or requesting further information. When to Use It: The elevator pitch deck is ideal for impromptu or brief interactions where you have limited time to make an impression. This includes: Networking events Casual conversations with potential investors or partners Initial introductions at conferences or trade shows Any situation where you need to quickly convey the essence of your startup and pique interest By having a well-crafted elevator pitch deck ready, you can ensure that you’re always prepared to make a strong first impression, no matter how spontaneous the opportunity may be. Related resource: Teaser Deck Investor Pitch Deck Definition: An investor pitch deck is a detailed presentation designed to provide potential investors with a comprehensive overview of your startup. This deck delves into the critical aspects of your business, including your market opportunity, financial projections, and growth strategy. Purpose: The main purpose of the investor pitch deck is to secure funding from venture capitalists, angel investors, or other financial backers. It aims to convince investors that your startup is a viable and lucrative investment opportunity. Key Components: Introduction: Briefly introduce your startup, including its name and a compelling tagline. Problem Statement: Clearly articulate the problem your startup addresses and why it matters. Solution: Provide a detailed explanation of your product or service and how it solves the identified problem. Market Opportunity: Present data on the size of your target market, growth potential, and market trends. Business Model: Explain how your startup plans to make money, including revenue streams and pricing strategy. Traction: Showcase any early successes, such as user growth, sales figures, partnerships, or pilot projects. Competitive Analysis: Identify your main competitors and highlight your competitive advantages. Financial Projections: Provide detailed financial forecasts, including projected revenue, expenses, and profitability. Team: Introduce your core team members, emphasizing their expertise and relevant experience. Funding Requirements: Specify how much funding you are seeking and how you plan to use the capital. Call to Action: Encourage investors to take the next step, such as scheduling a follow-up meeting or conducting due diligence. When to Use It: The investor pitch deck is used during formal presentations to potential investors. This can occur in various settings, including: Venture capital pitch meetings Angel investor gatherings Startup accelerators and incubators Investment competitions and demo days By preparing a well-structured and persuasive investor pitch deck, you can effectively communicate the potential of your startup and attract the funding needed to scale and grow your business. Related resource: Seed Round Pitch Deck Sales Pitch Deck Definition: A sales pitch deck is a presentation designed to persuade potential customers or clients to purchase your product or service. It focuses on highlighting the value and benefits your offering brings to the customer, showcasing how it solves their specific problems. Purpose: The primary purpose of the sales pitch deck is to convert leads into paying customers by demonstrating the value and effectiveness of your product or service. It aims to build trust and convince the audience that your solution is the best fit for their needs. Key Components: Introduction: Briefly introduce your startup and what you offer, including a compelling tagline. Problem Statement: Clearly articulate the customer's pain points and the problems they are facing. Solution: Explain how your product or service addresses these pain points and solves the problem effectively. Value Proposition: Highlight the unique benefits and value your solution provides to the customer. Product Features: Provide a detailed overview of the key features and functionalities of your product or service. Customer Testimonials: Include testimonials or case studies from satisfied customers to build credibility and trust. Use Cases: Demonstrate how different customers or industries use your product to achieve specific outcomes. Pricing: Outline your pricing model and any available packages or options. Call to Action: Encourage the audience to take the next step, such as signing up for a demo, starting a trial, or making a purchase. When to Use It: The sales pitch deck is used during interactions with potential customers or clients. This includes: Sales meetings and presentations Product demonstrations Follow-up meetings after initial interest Trade shows and industry conferences By having a well-prepared sales pitch deck, you can effectively communicate the value of your product, address any concerns, and persuade potential customers to take action and make a purchase. Partnership Pitch Deck Definition: A partnership pitch deck is a presentation designed to secure strategic alliances with other businesses. It focuses on highlighting the mutual benefits of a partnership, emphasizing how collaboration can drive growth and achieve shared objectives. Purpose: The primary purpose of the partnership pitch deck is to persuade potential partners that a collaboration will be mutually beneficial. It aims to demonstrate how working together can create synergies, unlock new opportunities, and deliver value to both parties. Key Components: Introduction: Briefly introduce your startup and what you offer, including a compelling tagline. Partnership Opportunity: Clearly articulate the rationale for the partnership and the specific goals you aim to achieve together. Mutual Benefits: Highlight the key benefits for both parties, such as increased market reach, shared resources, and enhanced product offerings. Market Opportunity: Present data on the market size, growth potential, and how the partnership can capitalize on these opportunities. Value Proposition: Explain the unique value each partner brings to the table and how combining strengths can create a competitive advantage. Synergies: Identify areas where the partnership can create synergies, such as technology integration, distribution channels, or customer base expansion. Case Studies: Include examples of successful partnerships or collaborations that have yielded positive results. Implementation Plan: Outline a high-level plan for how the partnership will be executed, including key milestones and responsibilities. Call to Action: Encourage the potential partner to take the next step, such as setting up a detailed discussion or signing a memorandum of understanding (MOU). When to Use It: The partnership pitch deck is used during meetings with potential partners. This includes: Initial discussions with companies you want to collaborate with Negotiations to finalize partnership terms Presentations at industry events where strategic alliances are sought Follow-up meetings to refine partnership details By preparing a well-structured partnership pitch deck, you can effectively communicate the potential of the collaboration, address any concerns, and persuade potential partners to move forward with the partnership. Demo Pitch Deck Definition: A demo pitch deck is a highly visual and interactive presentation designed to showcase your product in action. It emphasizes the functionality, features, and user experience of your product through live demonstrations or detailed walkthroughs. Purpose: The primary purpose of the demo pitch deck is to demonstrate the capabilities and benefits of your product firsthand. It aims to give the audience a clear understanding of how the product works and how it can solve their specific problems or enhance their operations. Key Components: Introduction: Briefly introduce your startup and what you offer, setting the stage for the demo. Product Overview: Provide a high-level overview of your product, highlighting its main features and functionalities. Live Demonstration: Conduct a live demo or show a video walkthrough of your product in action, focusing on key use cases. User Interface: Highlight the user interface and user experience, demonstrating how intuitive and easy-to-use your product is. Key Features: Dive deeper into the standout features of your product and explain how they address specific customer needs. Use Cases: Present real-world examples or scenarios where your product has been successfully used to solve problems or improve processes. Customer Testimonials: Include testimonials or case studies from satisfied customers who have benefited from using your product. Call to Action: Encourage the audience to take the next step, such as signing up for a trial, requesting a personalized demo, or making a purchase. When to Use It: The demo pitch deck is used during product demonstrations and interactive presentations. This includes: Product demo meetings with potential customers or clients Trade shows and industry conferences where live demos are expected Sales presentations where the audience needs to see the product in action Webinars or online demos conducted for a broader audience By preparing a compelling demo pitch deck, you can effectively showcase the strengths of your product, engage your audience, and persuade potential customers of its value. Customer Pitch Deck Definition: A customer pitch deck is a presentation aimed at converting leads into paying customers. It focuses on addressing the specific pain points of potential customers and presenting your product or service as the ideal solution to their problems. Purpose: The primary purpose of the customer pitch deck is to persuade potential customers to purchase your product or service. It aims to build a strong case for why your offering is the best fit for their needs, highlighting the benefits and unique value propositions. Key Components: Introduction: Briefly introduce your startup and what you offer, setting the context for the presentation. Problem Statement: Clearly articulate the pain points and challenges faced by the customer that your product or service addresses. Solution: Explain how your product or service effectively solves these problems, highlighting its unique features and benefits. Value Proposition: Emphasize the unique value your product or service brings to the customer, differentiating it from competitors. Product Features: Provide a detailed overview of the key features and functionalities of your product or service. Customer Testimonials: Include testimonials or case studies from satisfied customers who have benefited from your offering. Use Cases: Present real-world examples or scenarios where your product has been successfully used to solve problems or improve processes. Pricing: Outline your pricing model and any available packages or options, making it easy for the customer to understand the cost. Call to Action: Encourage the audience to take the next step, such as signing up for a trial, requesting a demo, or making a purchase. When to Use It: The customer pitch deck is used during interactions with potential customers who are in the decision-making phase. This includes: Sales meetings and presentations Follow-up meetings after initial interest has been shown Product demonstrations tailored to specific customer needs Webinars or online presentations aimed at converting leads By preparing a compelling customer pitch deck, you can effectively communicate the value of your product, address any concerns, and persuade potential customers to take action and make a purchase. Get Templates, Tips, and Connect with Potential Investors with Visible Mastering the art of the pitch is essential for any startup founder. You can ensure your message resonates with each audience by preparing multiple tailored pitch decks—such as elevator, investor, sales, partnership, demo, and customer decks. This targeted approach maximizes engagement, builds credibility, and enhances your chances of achieving your business goals. Share your pitch deck confidently with Visible, a purpose-built platform for fundraising. Our pitch deck sharing tool is completely integrated with our fundraising CRM and investor updates platform. Founders can also leverage their brand by hosting decks from their own domain and highlighting brand colors. Try Visible free for 14 days and start strengthening your investor connections.

Utah has rapidly emerged as a thriving hub for startups and venture capital, offering a fertile ground for entrepreneurial innovation and investment. The state's robust tech ecosystem, often referred to as the "Silicon Slopes," is home to a dynamic community of founders and investors driving significant growth and innovation. Venture capital in Utah has seen remarkable expansion, with a growing number of VC firms providing critical funding and support to early-stage companies. This vibrant startup scene is supported by a strong network of accelerators, incubators, and resources that make Utah an attractive destination for entrepreneurs seeking to launch and scale their ventures . Venture Capital in Utah At Visible, we often compare venture capital fundraise to a traditional B2B sales and marketing funnel. At the top of your fundraising funnel, you are bringing in qualified investors via warm and cold outreach. In the middle of your fundraising funnel, you are nurturing potential investors with pitch decks, meetings, and email updates. At the bottom of your fundraising funnel, you are hopefully closing new investors (and delighting them with regular updates). Related Resource: How to Find Venture Capital to Fund Your Startup: 5 Methods Just as a sales and marketing funnel starts with qualified leads, so should a fundraising funnel. For some companies, this might mean looking for local investors — for founders in Utah, check out a list of venture capitalists in the area below: 1. Park City Angels As put by their team, “The Park City Angels are a group of 40+ accredited investors located in Park City, Utah. We look to invest in promising opportunities that can produce significant shareholder return. The active lifestyle of Park City has attracted many dynamic and successful business leaders that have deep experience in building world class businesses. We facilitate unique, high-caliber networking and development forums for angel investors and mentors involved in early-stage investment.” Focus and industry: The Park City Angels team lays out their focus directly on their website, “We are most interested in companies that have valuations from $4MM to $6MM, have a reasonable likelihood of reaching $30MM in sales within 5 years, and can get to cash flow break-even within the next year or two.” Funding stage: Park City Angels is focused on companies with valuations between $4M and $6M The team at Park City Angels generally focuses on companies in Utah but is open to investing in companies across the country. Some of their most popular investments include: Lula High West Distillery Allgood Provisions Location: Park City, UT Related Resource: VCs Investing In Food & Bev Startups 2. EPIC Ventures As put by their team, “EPIC Ventures is a premier early-stage software and Internet infrastructure venture firm whose mission is to back entrepreneurs and companies positioned to lead the information economy of tomorrow. We bring the collective operational and financial experience of our partnership, our world-class advisors, and our extensive network of technology industry contacts to engage and ensure our portfolio’s success.” Focus and industry: The team at EPIC Ventures does not state an industry focus. Funding stage: The team at EPIC Ventures is focused on early-stage investments. EPIC Ventures invests in companies in Utah and the greater northwest in the United States. EPIC Ventures has invested across four funds. Some of their most popular investments include: Ancestory Manscaped Zenefits Location: Salt Lake City, UT Related Resource: A Quick Overview on VC Fund Structure 3. RenewableTech Ventures As put by their team, “RenewableTech Ventures is committed to creating exceptional returns for both the entrepreneurs we invest in and our fund investors. These exceptional returns are achieved by investing in early-stage innovations in energy, clean technology, green materials, and other clean technologies. Our investment activity is focused in Canada and the United States, with a specific focus on regions that are underserved by venture capital.” Focus and industry: The team at RenewableTech is focused on companies’ innovation in the energy, clean technology, and green technology space. Funding stage: RenewableTech Ventures is focused on early-stage investments. As put by their team, “​​RenewableTech Ventures provides capital, market intelligence, active board representation and an exceptional international network of industry contacts, technology leaders and co-investors.” They are focused on investing in the US/Canada, particularly in regions that are traditionally underserved by venture capital. Check out a few of their most popular investments below: Solid Carbon Products Consolidated Energy Systems Voila Mattress Location: Salt Lake City – Vancouver 4. Kickstart Fund Kickstart Fund is a seed-stage venture capital firm based in Salt Lake City, UT. Kickstart’s mission is to fuel the best companies in the Mountain West by providing smart capital, a connected community, and expert guidance. Since raising its first fund in 2008, Kickstart has invested in more than 150 companies. Focus and industry: As put by their team, “We’re industry agnostic and have invested in SaaS, consumer, marketplace, and healthcare startups.” Funding stage: Kickstart is focused on seed investing The team at Kickstart has invested in 150+ companies and has become synonymous with seed investing in the western US. Kickstart traditionally writes checks between $250k and $2M. The team is largely focused on investing in companies located in Utah, Colorado, and the Mountain West. Check out a few of their most popular investments below: Stance CloudApp Cotopaxi Location: Cottonwood Heights, Utah 5. Cross Creek Cross Creek seeks to invest in later stage companies through its direct and fund investment strategy. Funding Stage: Series C, Growth Location: Salt Lake City, UT 6. Pelion As put by their team, “Since 1986, Pelion Venture Partners has been helping entrepreneurs turn early-stage concepts into tomorrow’s industry-leading companies. The Pelion team has deep and diverse industry and investment experience. We are hands-on in our approach and work collaboratively on each portfolio company over the life of an investment.” Focus and industry: Pelion is agnostic in their investment focus Funding stage: Pelion is focused on early-stage investments The team at Pelion has been investing since 1986 so it is fair to say that they know their way around the Utah venture capital space. Some of their most popular investments include: BigPanda Owlet Divvy Location: Salt Lake City, UT 7. Mercato As put by their team, “Mercato has built its success by providing entrepreneurs with the capital and resources they require to effectively scale their businesses. Over time, we have become expert growth investors with firsthand knowledge of what organizations really need to be successful.” Focus and industry: The team at Mercato invests across 4 funds — each with a different focus and stage as shown below: Funding stage: Mercato invests across many stages depending on the fund As mentioned above, Mercato has 4 specific funds. Each fund gives them the opportunity to invest in different stages or markets. For the sake of this post we will take a look at their “Prelude Venture Fund.” As they put it, ‘Prelude companies have demonstrated product-market-fit and have deep customer relations obtained through product leadership and nimble execution.” A few of Prelude’s most popular investments include: Cotopaxi Blip Bluematador Location: Cottonwood Heights, UT 8. Zetta Venture Partners As put by their team, “At Zetta Venture Partners, it’s our mission to help technical founders turn machine learning models into market-leading companies. We were the first VC firm exclusively focused on identifying and supporting AI-driven, B2B businesses.” Focus and industry: Zetta Venture Partners is focused on AI-first startups Related Resource: How AI Can Support Startups & Investors + VCs Investing in AI Funding stage: The team at Zetta Venture Partners leads pre-seed and seed rounds. Zetta Venture Partners launched their first fund in 2015 and has been hyper-focused on AI startups since. Zetta believes that AI startups are different than traditional software companies and are well-suited to help technical founders in the space. Some of their most popular investments include: Clearbit Domo Tractable Location: New York – San Francisco – Utah 9. Signal Peak Ventures As put by their team, “Signal Peak is a private equity and venture capital firm with more than $500 million of committed capital under management. The firm focuses on making equity investments in early-stage technology companies in emerging markets. Signal Peak is typically a SaaS investor targeting companies with differentiated and disruptive business models, exceptional management teams, and large addressable markets.” Focus and industry: Signal Peak typically targets SaaS companies Funding stage: Signal Peak is focused on early-stage companies Signal Peak is focused on investing in technology companies across the United States. Some of their most popular investments include: Degreed Slate Hivewire Location: Salt Lake City, UT 10. Peterson Ventures As put by the team at Peterson Ventures, “We get it, building a business is hard. With us you get a dedicated partner you can trust, no matter what. And when you need it, we’re a counselor without a co-pay. We help you go from Seed to Series A by investing in your seed round, introducing you to our network of CEO’s and advisors, improving your metrics, focusing your strategy when the time is right, introducing you to some of the best investors around for your next round of funding.” Focus and industry: Peterson Ventures is focused on companies in digital commerce and SaaS Funding stage: Peterson Ventures is focused on seed and early-stage startups The team at Peterson invests in the people behind a business. They believe in building long-lasting relationships with their entrepreneurs. A few of their most popular investments include: Allbirds Bonobos Cotopaxi Location: Salt Lake City, UT 11. Album VC Album VC, originally known as Peak Ventures, is a well-regarded venture capital firm based in Utah that focuses on investing in early-stage technology companies. Established by seasoned entrepreneurs John Mayfield and Curt Roberts, Album VC rebranded in 2019 to better reflect its mission of amplifying the stories of the companies they back. The firm is known for its founder-friendly approach, providing not only capital but also extensive mentorship and strategic support. Album VC has a strong track record of helping startups achieve significant growth and success, making it a valuable partner for entrepreneurs looking to scale their businesses. Focus and industry: The primarily focus is on early-stage investments across a wide range of industries. They have a particular interest in sectors such as software, consumer internet, and enterprise technology. Their portfolio includes companies that are pushing the boundaries of innovation and transforming their respective industries. Founders in these sectors can expect Album VC to bring not only capital but also strategic guidance and valuable industry connections. Funding stage: Album VC typically invests in Seed and Series A rounds, offering initial checks ranging from $500,000 to $5 million. They aim to support startups from their earliest stages of development, providing the necessary resources to scale and succeed. Album VC’s investment strategy is tailored to help companies navigate the critical phases of growth, ensuring they have the support needed to achieve their milestones. Location: Lehi, Utah 12. Tamarak Capital Tamarak Capital is a dynamic venture capital firm dedicated to nurturing early-stage startups with high growth potential. With a mission to accelerate the development of innovative companies, Tamarak Capital combines financial investment with strategic mentorship to help founders build successful businesses. The firm prides itself on its collaborative approach, working closely with entrepreneurs to provide the guidance and resources needed to achieve their goals. Focus and industry: Tamarak Capital primarily focuses on investing in technology-driven industries. Their areas of interest include software, hardware, consumer products, and healthcare technology. Funding stage: Tamarak typically invests in Seed and Series A rounds, with initial investments ranging from $500,000 to $2 million. Their goal is to support startups at the early stages of their development, providing the capital and expertise necessary to help them scale. Location: Springville, Utah 13. StartStudio StartStudio is an innovative venture capital firm based in Utah, dedicated to transforming early-stage startups into successful, scalable businesses. With a unique approach that blends investment with hands-on incubation, StartStudio works closely with founders to develop their ideas and bring them to market. Their team of experienced entrepreneurs and investors provides comprehensive support, including mentorship, strategic guidance, and operational assistance, making StartStudio a valuable partner for ambitious startups looking to accelerate their growth. Focus and industry: StartStudio primarily focuses on technology-driven industries, with a strong emphasis on software, mobile applications, and digital platforms. Funding stage: StartStudio typically invests in pre-seed and seed-stage companies, with an initial investment of $100,000. Their investment strategy is designed to provide early-stage startups with the critical funding they need to develop their products, validate their business models, and prepare for subsequent funding rounds. Location: Provo, Utah 14. Royal Street Ventures Royal Street Ventures' philosophy is centered on collaboration and long-term partnership. It offers both financial backing and strategic mentorship to early-stage companies. The team comprises seasoned investors and industry experts who work closely with founders to provide the resources and guidance necessary for scaling their businesses and achieving market success. Focus and industry: They invest in companies focused on creating scalable, tech-enabled solutions to real-world problems from the Midwest to the Pacific U.S. Funding stage: Typically, they invest in early-stage and seed rounds, with initial investments ranging from $250,000 to $2 million. Location: Park City, Utah Find investors in Utah with Visible As we mentioned at the start of this post, we often compare a venture capital fundraise to a traditional sales and marketing funnel. Just as a sales and marketing team has dedicated tools, shouldn’t a founder manage their investors? With Visible you can manage every part of your fundraising funnel: Find investors with Visible Connect, our free investor database, at the top of your funnel Track your conversations with our Fundraising CRM Nurture them with our Pitch Deck sharing tool Work through due diligence with our Data Room tool Delight them with regular investor Updates Give Visible a free try for 14 days here →

The cannabis industry is experiencing explosive growth following legalization across various regions. Startups are redefining how cannabis businesses operate by introducing innovative solutions to streamline supply chains, improve retail management, and enhance consumer products. Companies like LeafLink have revolutionized B2B cannabis commerce, while firms like Dutchie, Pax Labs, and others bring advanced e-commerce and retail management platforms to the fore. With robust investor backing and increasing acceptance, these startups are spearheading a new era of cannabis entrepreneurship, creating opportunities for founders, cultivators, and investors alike​​​​. Related resource: 12+ Cannabis Venture Capital Investors to Know in 2024 1) LeafLink LeafLink is a pioneering startup in the cannabis industry, providing a wholesale marketplace that connects retailers with over 1,800 cannabis brands and distributors. This platform facilitates streamlined business operations, making it easier for companies to manage orders and grow their businesses efficiently​​​​. Headquarters Location: LeafLink is based in New York City, with additional regional hubs in Los Angeles and Austin. As a remote-first company, it also boasts a broad presence across the United States, ensuring accessibility and connectivity in various cannabis markets​​. Current Funding: LeafLink has raised substantial funding to fuel its growth, including a $40 million Series C round led by Founders Fund, reflecting significant investor confidence. Overall, the company has secured a total of $479M in funding over 9 rounds. Their latest funding was raised on Feb 1, 2023 from a Series D round. Years in Operation: LeafLink was founded in 2015, during which it has significantly impacted the cannabis supply chain and B2B commerce​​. Founders: Ryan G. Smith serves as the CEO, and Zach Silverman is the Co-Founder and Senior Advisor of LeafLink. They founded the company with the vision of simplifying the cannabis supply chain, leveraging their backgrounds in technology and e-commerce to pioneer new standards in the industry​​. 2) Dutchie Dutchie is a prominent player in the cannabis industry, providing an integrated technology platform that powers online ordering for cannabis dispensaries. It helps dispensaries create and manage their websites, process orders, and ensure efficient operations through its suite of e-commerce and point of sale solutions​​​​. Headquarters Location: Dutchie is headquartered in Bend, Oregon, which is also where it was founded. This location supports its operations across the United States and Canada​​​​. Current Funding: Dutchie has raised significant funding, totaling $603 million. This includes a substantial $350 million in a Series D round that valued the company at $3.75 billion, highlighting the strong investor confidence in its business model and growth potential​​​​. Years in Operation: Founded in 201, Dutchie has quickly become a leader in its field, experiencing rapid growth and expansion​​​​. Founders: Founded by brothers Ross Lipson and Zach Lipson. Both no longer run the company. 3) Pax Labs, Inc Pax, originally known as Ploom, is a leader in the vaporization industry, specializing in the development and manufacturing of premium vaporizers for cannabis and nicotine. These devices are known for their sleek design and smart technology, allowing connectivity with mobile devices for enhanced user experience. Headquarters Location: Pax Labs is based in San Francisco, California. Current Funding: The company has raised significant funds, notably securing $492.2 million in funding over 4 rounds, reflecting a strong investor confidence in its technology and market approach​​. Years in Operation: Pax Labs was founded in 2007 and has been operational for over a decade, evolving its product line and expanding its market reach during this time. Founders: The company was founded by James Monsees and Adam Bowen, who aimed to innovate and improve the personal vaporization market. Neither is still with the company. 4) Green Thumb Industries Green Thumb Industries (GTI) operates as a national cannabis consumer packaged goods company and retailer. The company is known for manufacturing and distributing a diverse portfolio of branded cannabis products such as &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RYTHM. Additionally, GTI owns and operates a rapidly growing chain of national retail cannabis stores named RISE​​​​. Headquarters Location: Green Thumb Industries is headquartered in Chicago, Illinois​​​​. Current Funding: Green Thumb Industries has raised a total of $79.2M in funding over 4 rounds. Their latest funding was raised on Apr 30, 2021 from a Post-IPO Equity round. Years in Operation: Green Thumb Industries was founded in 2014 and has since grown into a significant player in the cannabis industry in the United States​​​​. Founders: The company was founded by Ben Kovler who serves as the CEO, Chairman, and key visionary behind the company's growth and strategic direction​​. 5) FlowHub Flowhub is a Denver-based cannabis technology company that specializes in compliance, inventory management, and point-of-sale (POS) software solutions designed specifically for the cannabis industry. Their platform aims to streamline dispensary operations, making regulatory compliance easier and improving the overall efficiency of cannabis retail management​​​​. Headquarters Location: Flowhub is headquartered in Denver, Colorado​​. Current Funding: Flowhub has raised significant funding over the years totalling $45.8M over 4 rounds. Years in Operation: Founded in 2015, Flowhub has been operational for several years, focusing on providing technological solutions to cannabis dispensaries to help them navigate the complex regulatory environment​​. Founders: Kyle Sherman is the founder of Flowhub. He started the company with the vision to create a more efficient and compliant cannabis retail environment through innovative technology​​. 6) Tokyo Smoke Tokyo Smoke is a lifestyle brand and cannabis retailer focused on creating an immersive experience centered around cannabis, coffee, and clothing. Their vision aims to shape a sophisticated and inclusive brand that transcends typical cannabis culture. Headquarters: Located in Toronto, Canada. Founding Year: Established in 2015. Founders: Founder and Chairman Lorne Gertner and Co-founder and CEO Alan Gertner. Funding: Raised $7.7 million over 2 rounds, the last closing in October, 2017 in a series B round. Ownership: Acquired by OEG Retail Cannabis in 2023, which expanded the brand's reach and capabilities​​. 7) Jushi Holdings Jushi Holdings Inc. is a multi-state cannabis operator involved in the retail, cultivation, manufacturing, and processing of cannabis products in both medical and adult-use markets. The company is dedicated to building a diverse portfolio through strategic acquisitions and investments in the cannabis sector. Headquarters Location: Boca Raton, Florida, USA. Current Funding: Jushi has raised a total of $490.5M in funding over 12 rounds. Their latest funding was raised on Apr 6, 2023 from a Post-IPO Debt round. Years in Operation: Founded in 2007. Founders: Erich Mauff, Jim Cacioppo, and Jon Barack. 8) Cannabist Company The Cannabist Company, previously known as Columbia Care,stands out as a leading cultivator, manufacturer, and retailer of cannabis products and services in the United States. As one of the initial medical cannabis providers in the country, it established a patient-focused operation that has successfully transitioned into a dominant player in the adult-use market. Their product portfolio includes various forms such as flower, oils, edibles, and tablets. Notably, they are the producers behind popular brands like Classix, Seed & Strain, and Hedy. Headquarters Location: The company is based in Chelmsford, Massachusetts. Current Funding: They have raised a total of $530.6M in funding over 9 rounds. Their latest funding was raised in Marxh, 2024 from a Post-IPO Debt round. Years in Operation: The Cannabist Company has been operational since 2012. Founders: The company was co-founded by Nicholas Vita and Michael Abbott. Connect With Cannabis Investors Today In the rapidly evolving cannabis industry, startups are leveraging technology to streamline operations and expand their reach. Companies like the ones we covered, among others, are pioneering new standards in retail management, supply chain efficiency, and customer experience. As these innovative companies continue to grow, investment opportunities in the cannabis sector have become increasingly attractive to venture capitalists. To effectively manage your fundraise from start to finish, showcase your business's value, track progress, and manage relationships with Visible. Give it a free try for 14 days here. Find investors at the top of your funnel with our free investor database, Visible Connect, also check out our pre-filtered list of cannabis VCs here. Some Cannabis VCs from our database include KEY Investment Partners, Entourage Effect Capital, and HALLEY Venture Partners. Track your conversations and move them through your funnel with our Fundraising CRM. Share your pitch deck and monthly updates with potential investors. Organize and share your most vital fundraising documents with data rooms.

As a femtech founder navigating the ever-evolving landscape of women-specific health solutions, I find it crucial to understand the industry's breadth and the opportunities it presents. As the market continues to expand, driven by innovation and a more profound societal recognition of these needs, understanding the current trends, market size, and potential gaps is essential for anyone looking to make a significant impact in this space. Understanding the Femtech Landscape Femtech encompasses a broad spectrum of software, diagnostics, products, and services designed specifically to address women’s health issues. This sector includes solutions for female-specific health concerns such as fertility, birth control, menstruation and period care, menopause, chronic conditions and hormonal disorders, pelvic health, pregnancy and post-pregnancy care, breastfeeding, and sexual wellness. Moreover, femtech also extends into emerging health spaces that recognize gender-specific healthcare needs, encompassing wellness and mental health areas such as osteoporosis, breast cancer, autoimmune conditions, stroke, thyroid issues, chronic fatigue, anxiety, and depression. Beyond physical and mental health, femtech products increasingly empower women in areas traditionally underserved by technology, including personal finance and education. Evolution of the Industry The femtech industry began to gain prominence in the early 2010s as entrepreneurs and investors realized the significant underserved market in women's health technology. Initially focusing on reproductive health and period-tracking apps, the sector has since expanded into a wide range of health categories and now includes sophisticated diagnostic tools, telehealth services, and personalized wellness products. This evolution reflects a broader societal shift towards more open conversations about women's health issues and a growing recognition of the economic potential of addressing these needs. Current Market Size and Projected Growth The femtech industry has seen explosive growth over the past decade. As of recent estimates, the global femtech market is valued at several billion dollars and is projected to grow substantially as the demand for women-specific health solutions continues to increase. This growth is driven by technological advancements, increasing female healthcare consumerism, and a rising number of women in STEM fields who are poised to innovate and lead in this space. Key Areas of Innovation Reproductive Health and Fertility: Innovations include apps and devices that improve fertility tracking, in vitro fertilization (IVF) technologies, and non-invasive pregnancy monitoring tools. Menstrual Health: Advanced menstrual products that go beyond traditional offerings, smart menstrual cups, and wearable technologies are transforming menstrual health management. Menopause Solutions: With an aging population, digital therapeutics, hormone replacement therapies, and lifestyle management apps specifically for menopause are increasing. Chronic Conditions and Hormonal Disorders: Technologies aimed at managing conditions like polycystic ovary syndrome (PCOS) and endometriosis through better diagnostics and personalized treatments. Mental Health: Platforms focusing on mental health issues prevalent in women, such as postpartum depression, anxiety, and the psychological aspects of chronic health issues. Femtech Industry Trends and Opportunities The femtech sector has been characterized by several prominent trends highlighting the current momentum and the industry's future potential. A growing focus on personalized healthcare has propelled the development of bespoke femtech solutions that cater to individual health needs. There is also an increasing crossover between wellness and healthcare, where apps and devices integrate preventive care with daily wellness routines, reflecting a holistic approach to women's health. Expanding community-based platforms has also fostered a supportive network where users share experiences and advice, enhancing user engagement and retention. Emerging Technologies and Their Potential Impact Artificial Intelligence (AI): AI is revolutionizing femtech by enabling more accurate diagnostics and predictive analytics. AI-driven platforms can analyze vast amounts of data to predict health trends, personalize healthcare recommendations, and optimize treatment plans. Telehealth: The pandemic accelerated the adoption of telehealth in femtech. This technology provides women with remote access to healthcare professionals for a variety of issues, from fertility consultations to mental health support. It is crucial to make healthcare more accessible, especially in underserved areas. Wearable Devices: Wearables have evolved from fitness tracking to sophisticated health monitoring tools. In femtech, wearable devices now track menstrual cycles, monitor pregnancy, and even detect early signs of breast cancer, offering continuous, real-time health monitoring. Examples of Successful Femtech Companies Clue: A leading menstrual health app that uses data to predict menstrual cycles and offer insights into reproductive health. Clue has set a high standard for privacy and scientific accuracy, making it a trusted tool for millions of women globally. Elvie: Known for its innovative breast pumps and pelvic floor trainers, Elvie combines sleek, discreet designs with powerful, smart technology, significantly improving women's lives post-pregnancy and beyond. Tia: This company offers a holistic healthcare approach for women by integrating virtual and in-person care, focusing on everything from gynecology to mental health, embodying the integrated care model that is becoming a trend in femtech. Potential Gaps in the Market and Opportunities for Innovation Despite the advancements, several areas within femtech still lack adequate solutions, presenting opportunities for innovation: Menopause Management: There is a noticeable gap in products addressing the full spectrum of menopause symptoms. Innovations in hormone replacement therapy delivery or non-hormonal symptom management can meet significant demand. Health Issues in Aging Women: Conditions like osteoporosis and cardiovascular health in post-menopausal women are underrepresented in current femtech products. Mental Health: While some platforms address postpartum depression, broader mental health issues linked to hormonal changes throughout a woman's life cycle are still underserved. Global Accessibility: Many femtech products are not readily available or affordable globally, especially in developing countries. Creating scalable solutions that are both accessible and culturally sensitive could expand the reach of femtech significantly. Fundraising Strategies for Femtech Startups Fundraising in the femtech sector has evolved significantly over the past decade, with more investors recognizing the potential of women-centric health solutions. Increasing awareness and successful exits are driving more interest from venture capitalists, angel investors, and strategic partners. Notably, the unique nature of femtech, which combines technology, healthcare, and direct-to-consumer elements, appeals to a diverse group of investors looking to impact women's health globally. What Investors are Looking for in Femtech Startups Investors interested in femtech are particularly keen on startups that: Address a Clear Unmet Need: Products that solve a real and significant problem in women’s health are more likely to attract attention. Have a Scalable Business Model: Investors look for companies with the potential to grow quickly and sustainably. Show Strong Founder Expertise: Teams with backgrounds in healthcare, technology, and business, or with personal experiences that motivate their vision, are often more compelling. Demonstrate Technological Innovation: Startups that leverage new technologies to improve outcomes, efficiency, or user experiences stand out in the fundraising process. Provide Evidence-Based Solutions: Given the health-focused nature of femtech, products backed by scientific research and data are more likely to gain investor confidence. Related resource: The Rise of Women-Led VC Firms (+ a List to Keep an Eye on) Crafting a Compelling Pitch Articulate the Problem and Your Unique Solution: Clearly define the specific women's health issue your product addresses and how your solution is different from or better than existing offerings. Highlight the Market Potential: Use data to demonstrate the size of the market and your target demographic. Show how your product fits into the broader health and wellness industry trends. Showcase Your Team’s Expertise: Emphasize the qualifications and experiences of your team that make you the right people to execute this vision. Provide Proof of Concept: Whether through initial sales data, user testimonials, or clinical trials, show that there is a demand for your product and that it works. Discuss Your Business Model: Explain how you will generate revenue, your pricing strategy, and your marketing approach. Be clear about how you intend to scale. Outline the Use of Funds: Be specific about how much money you need and how you plan to use it to grow your business. Related resource: 10+ VCs & Accelerators Investing in Underrepresented Founders VCs and Accelerators Investing in Femtech Startups 2024 FemTech Lab Location: London, England About: Unlocking Women's health and wellness for a fairer, better World. Join the movement! FemTech Lab is a global ecosystem of 20,000+ founders, investors, corporate partners, biotech and research, hospitals, pharmaceuticals, government, and retail leaders innovating across all women's health and wellness subsectors. The FemTech Lab Accelerator program has supported 70+ inspiring startups in women's health. If you are interested in applying, check out the timing of the next cohort on our website and sign up for the next open webinar. Goddess Gaia Ventures Location: London, GB About: A female founded pre series A fund (in building mode) investing in 360 solutions in female health, wellness and Femtech in a + $1 Trillion TAM which has to date been under-served, under-researched and under-funded . Mission Statement: To grow the next generation of Women’s healthcare unicorns We invest in: UK, Europe, Greater Europe and Israel and scaling these companies into the US We partner with: Founders (male and female) seeking to invent new market categories or who are seeking to disrupt incumbent healthcare markets Exponential Sector Growth: Increase of women in STEM and Finance; innovating for themselves Special Interest: Solutions that cater to the health of women of colour and that create healthcare parity Thesis: Goddess Gaia Ventures (GGV) is capitalising on the $1.1 trillion women’s healthcare market by investing in five core pillars - women's fertility; women's cancer; women's wellness; women's lifestyle diseases and Femtech products and services. Amboy Street Ventures Location: Los Angeles, California, United States About: The world’s first venture capital fund focused on Sexual Health & Women’s Health Technology startups. Amboy Street Ventures is an active investor and adds value above and beyond capital. Its dedicated Value Enhancement Team supports portfolio companies with marketing & branding, sales & distribution, product development & scientific innovation and public education resources through its position within the Healthy Pleasure Group, an ecosystem dedicated to solving the problems that startups face in the Sexual Health and Women’s Health Tech market. Thesis: Amboy Street Ventures invests in the Seed and Series A rounds of Sexual Health & Women’s Health Technology startups that are progressing the industry in America and Europe. Astarte Ventures Location: New Jersey, United States About: Astarte Ventures is an innovation and investment consulting firm, with expertise in women's health, pediatrics, health equity, AI, and gut health. Thesis: Investing to improve the health and wellbeing of women and children. Avestria Ventures Location: San Francisco, California About: Avestria Ventures is an investment firm that focuses on women's health and female-led life science and healthcare companies. Thesis: We invest in women’s health and life science; it’s what we know best. Everywhere Ventures Location: New York, United States About: Global pre-seed fund backed by 500 founders and operators. Thesis: We invest $50-250k into pre-seed companies looking to raise between $500-$2M. We are happy to lead or partner with other investors. We are generalists at heart, but lean into three core areas: money, health, and work. We embrace first-time founders, and founders who may lack traction but have a distinct vision for a world that may not exist…yet. Emmeline Ventures Location: Los Angeles, CA About: Emmeline Ventures is a female-founded early-stage fund investing in ambitious female founders building businesses that are helping women, in particular, manage their health, build their wealth, and live in a cleaner, safer world. Thesis: We invest across women's health, financial services, and sustainability specifically where breakout technology and innovaton is helping women live & thrive. Resources for Femtech Founders Deloitte’s Femtech: Poised for growth List of 150+ VC Funds Investing in Women's Health and Femtech Crunchbase’s The femtech market map Crunchbase’s The Next Frontier Of Femtech Connect Investor Database list of VCs investing in Femtech Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors. After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.

Navigating the complexities of investor agreements is crucial for startup founders aiming to secure crucial funding while protecting their interests. This article will guide you through the essentials of crafting a solid investor agreement, highlighting key components like investment terms, company valuation, and exit strategies. You'll learn not only what makes up an investor agreement but also how to tailor one to fit your startup's unique needs, ensuring a clear path to successful investor relationships. What Is an Investor Agreement? An investor agreement is a legal contract between an investor and a company that outlines the terms of the investment. It specifies the roles, expectations, and obligations of both parties, ensuring that the investor's financial contributions are protected and that the company uses the funds as agreed upon. There are several types of investor agreements commonly used in business, each tailored to different investment scenarios: Stock Purchase Agreement: This type of agreement is used when investors purchase shares directly from the company, giving them ownership according to the percentage of stock acquired. Convertible Note Agreement: Often used in early-stage startups, this agreement allows the investment to initially be a loan that converts into equity, usually after a subsequent financing round or under certain conditions outlined in the agreement. Simple Agreement for Future Equity (SAFE): Popular among startups for its simplicity and flexibility, a SAFE grants investors the right to convert their investment into equity at a later date, typically during a future funding round. Restricted Stock Agreement: This agreement governs the issuance of shares that are subject to certain restrictions, typically vesting over time and providing that shares must be sold back to the company under certain conditions. Debt Agreement: When startups prefer not to give up equity, they might opt for debt agreements where the investor lends money to the business, to be repaid with interest by a specified date. Each type of agreement has its nuances and must be chosen carefully based on the company’s specific needs and the investor's expectations. It’s crucial for founders to understand these distinctions to choose the most appropriate form of agreement for their circumstances​​​​. Key Components of an Investor Agreement Template When structuring an investor agreement, it's essential to include comprehensive and detailed sections that address every aspect of the investment relationship. This clarity not only safeguards both parties' interests but also ensures smooth cooperation throughout the duration of the agreement. Below, we delve into the key components that should be part of any investor agreement template, each playing a crucial role in fostering a transparent and effective partnership. Related resource: A Complete Guide on Founders Agreements 1. Preliminary Information The foundation of any investor agreement begins with the preliminary information, which includes all the basic and identifying details such as the names, addresses, and legal statuses of the parties involved, as well as the date of the agreement. This section sets the legal context for the agreement and acts as a reference point for all parties involved, ensuring there is no ambiguity about who is bound by the terms of the document. 2. Investment Details Specifying the investment details is critical. This includes the amount of investment, the form it will take (whether cash, assets, or services), and any conditions or milestones that must be met before the investment is realized. Clear articulation of these details prevents misunderstandings and sets clear expectations for the deployment of the investment, which is vital for both parties’ financial planning and accountability. 3. Company Valuation and Capital Structure It's important to clearly outline how the company is valued and how its capital structure will be affected post-investment. This information sets the stage for determining ownership percentages and the distribution of equity. Transparency in this area reassures investors about the basis of their investment valuation and aligns all parties’ expectations regarding their stakes. 4. Roles and Responsibilities Defining the specific roles and responsibilities of both the investor and the startup is crucial for maintaining clear expectations and accountability. This section should detail the commitments of each party, including any operational roles the investor might assume, and their involvement in decision-making processes. Clarity here ensures smooth day-to-day operations and helps prevent conflicts. 5. Terms of Investment The terms of investment outline the specifics of the financial relationship, such as the rights to dividends, conversion rights, and voting rights. This section is fundamental as it delineates how profits and losses are distributed, how and when investments might be converted into equity, and how investors can influence company decisions through their votes. 6. Governance and Voting Rights Governance structures and voting rights are essential for outlining how decisions are made within the company, who gets to vote, and what issues require a vote. This framework is key to maintaining order and clarity in the company's decision-making processes, particularly in scenarios involving multiple investors with varying stakes. 7. Exit Strategies Planning for future changes in ownership or the potential exit from the company is crucial. This part of the agreement might include buyback rights, rights of first refusal in case of sale, and other mechanisms that allow for a smooth transition or exit. Having these strategies predefined helps manage expectations and reduces potential conflicts during critical transitions. 8. Confidentiality and Non-Disclosure To protect the sensitive information of both the startup and the investor, confidentiality and non-disclosure clauses are critical. These provisions help build trust, protect trade secrets, and ensure that strategic information does not fall into competitors' hands. 9. Dispute Resolution Finally, having a predetermined method for resolving disputes is crucial for handling disagreements efficiently and fairly. This section should specify whether disputes will be handled through mediation, arbitration, or court proceedings, and outline the steps each party should follow in the event of a disagreement. Related resource: What Should be in a Startup’s Data Room? How Do You Write an Investor Agreement? Drafting an investor agreement is a critical step for any startup engaging with investors. This document not only formalizes the relationship between a company and its investors but also ensures that both parties are clear on the terms of the investment. Below, we detail the essential steps involved in creating a robust investor agreement that secures interests and fosters a positive business relationship. Gathering Information and Structuring the Agreement The first step in drafting an investor agreement is to collect all necessary information about the investment and the parties involved. This includes details about the investment amount, the structure of the investment (e.g., equity, debt), and the specific roles and obligations of each party. Accurate and comprehensive information is crucial as it forms the basis of the agreement, ensuring that all terms are based on a clear understanding of the investment and the expectations of both parties. This foundational step prevents future misunderstandings and lays the groundwork for a solid legal agreement. Involving the Right Parties It is essential to identify and involve all relevant parties in the agreement process. This includes not only the investors and company founders but also may include lawyers, accountants, and other stakeholders who have a vested interest in the transaction. Ensuring that all parties are appropriately represented and that their roles and expectations are clearly defined from the outset is crucial. This clarity helps in avoiding conflicts later and ensures that the agreement reflects the interests and responsibilities of everyone involved. Drafting Key Clauses The heart of the investor agreement lies in its clauses, which detail the terms of the investment, rights, and obligations of the involved parties. Key clauses include those related to the amount and structure of the investment, conditions for funding, management and use of the investment, investor rights, and any specific covenants related to company governance. Each clause must be drafted with clarity and precision to avoid ambiguity and ensure that the terms are enforceable. Legal expertise is often required in this phase to ensure that the clauses are legally sound and adequately reflect the agreed-upon terms. Negotiation and Finalization Once a draft of the investor agreement is prepared, the negotiation phase begins. During this stage, both parties review the draft, suggest modifications, and discuss any concerns they might have with the proposed terms. This phase is crucial as it allows both sides to refine the agreement to better meet their needs and to ensure mutual understanding and satisfaction with the terms. After negotiations are completed, the final agreement is prepared for signing. It is advisable for both parties to have legal counsel review the final document to ensure that it is comprehensive and legally binding. Related resource: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements Build Strong Investor Connections with Visible Crafting a solid investor agreement is key to protecting the interests of both the startup and its investors. Establishing clear terms and open lines of communication from the outset can significantly enhance these critical business relationships. To manage and enhance investor relations with ease and efficiency, try Visible. By using Visible, you can streamline investor communications, track important metrics, and report progress efficiently, keeping your investors engaged and informed. Ready to take your investor relations to the next level? Try Visible free for 14 days and start strengthening your investor connections.

Crowdfunding has revolutionized the way startups and social initiatives gather the necessary funds to bring their ideas to life. This article will explore the intricacies of crowdfunding, delving into its various types and the unique benefits and challenges they present. Whether you're a founder looking to kickstart your project or simply curious about how crowdfunding could play a role in your financial strategy, read on to discover the ins and outs of this dynamic funding mechanism. What Is Crowdfunding, and Why Is It Important? Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure. Crowdfunding is vital not only as a tool for gathering financial resources but also for validating a product or service in the market, engaging with customers, and building community support​​​​. Three of the most popular crowdfunding platforms include: Kickstarter- The platform operates on an all-or-nothing funding model, which means that project creators only receive funds if their campaign reaches its predetermined funding goal. This model encourages creators and founders to set realistic goals and actively promote their projects to ensure success. Indiegogo- Known for its flexibility, it supports a wide range of campaigns from tech innovations to artistic endeavors. The platform is distinct for allowing both fixed and flexible funding goals, making it a versatile choice for project creators who may still benefit from partial funding if they do not meet their full target. Patreon- Patreon stands out among crowdfunding platforms because it caters to creators seeking continuous funding rather than one-time project support. This makes it particularly popular with individuals involved in ongoing creative endeavors such as musicians, YouTubers, podcasters, and filmmakers. Related resource: How to Raise Crowdfunding with Cheryl Campos of Republic The Pros and Cons of Crowdfunding Crowdfunding offers unique opportunities and benefits for startups and projects, but it also comes with its set of challenges. In the next section, we will delve into the pros and cons of crowdfunding, providing a balanced perspective that will help founders understand what to expect and how to prepare for a successful campaign. Pros of Crowdfunding Pre-Launch Interest and Momentum: Crowdfunding allows founders to generate buzz and interest in a product or service before it officially launches. This pre-launch momentum can be crucial in establishing a brand and ensuring a successful market entry​​. Market Validation: Crowdfunding campaigns allow investors to gauge customer interest and validate the market demand for a product or service before it fully hits the market. This can reduce the financial risks associated with launching new and untested products​​. Risk Reduction through Pre-Sales: By using crowdfunding platforms to pre-sell products, founders can reduce financial risks associated with production and inventory. This approach ensures that there is a market demand before significant investments are made​​. Marketing and Publicity: Crowdfunding campaigns can serve as powerful marketing tools, providing significant media exposure and public attention that can continue to benefit the project long after the campaign has ended​​. Direct Customer Feedback: Crowdfunding offers a unique opportunity for founders to receive direct feedback from early adopters. This feedback can be invaluable for making adjustments to the product or service before it hits the broader market​​. Building a Loyal Community: Crowdfunding not only raises funds but also helps in building a community of supporters who are emotionally and financially invested in the success of the project. This community can become a vital asset for future promotions and continued business growth​​​​. Access to Capital: Crowdfunding provides a platform to raise significant amounts of money without the need for traditional financial intermediaries such as banks or venture capital firms. This can be especially useful for startups and small businesses that may not have access to traditional funding sources​​. Cons of Crowdfunding High Competition: The popularity of crowdfunding platforms means that numerous projects are vying for the same pool of potential backers. Standing out among the crowd requires a compelling story and effective marketing strategies, which can be challenging and resource-intensive​​. Fulfillment Pressures: Successfully funded projects face the pressure of fulfilling backers' rewards and expectations. This can be particularly challenging if the campaign goes viral and the number of backers exceeds initial forecasts, complicating logistics and potentially increasing costs​​. All-or-nothing Funding Models: Many crowdfunding platforms operate on an all-or-nothing funding model, where you must reach your funding goal to receive any money. Falling short means no funding at all, which can be a significant risk if you've already invested in campaign marketing and product development​​. Public Exposure of Ideas: When you pitch a project on a crowdfunding platform, you expose your business idea or concept to the public, which includes potential competitors. This can lead to issues if the intellectual property is not fully protected or if the concept is easily replicable​​. Related resource: Pros and Cons of Crowdfunding for Your Startup The 4 Different Types of Crowdfunding As you explore the world of crowdfunding, it's essential to understand the different types that are available. Each type offers unique advantages and fits different kinds of projects and goals. Below, we delve into the four primary types of crowdfunding: donation-based, equity-based, rewards-based, and debt-based. Choosing the right one can be critical to your campaign’s success. Related resource: 6 Types of Investors Startup Founders Need to Know About 1) Donation-Based Crowdfunding Donation-based crowdfunding is exactly what it sounds like – backers donate money without expecting anything in return. This model is primarily used for charitable causes or community projects where the reward is the satisfaction of contributing to a good cause. When to Use This Method of Crowdfunding This method is ideal for non-profit organizations, social causes, or community projects where monetary return isn't an expectation. It's particularly effective when the audience is motivated by philanthropy rather than a tangible return​​. 2) Equity-Based Crowdfunding Equity-based crowdfunding involves offering a stake in your company in exchange for capital. This means investors receive shares of your business and become partial owners. It’s a way to raise significant funds while distributing the financial risk among a group of investors. When to Use This Method of Crowdfunding Use equity-based crowdfunding when you need substantial capital and are comfortable sharing ownership of your company with investors. It is suitable for startups that expect to grow and generate significant revenue, making the equity stake potentially valuable​​. 3) Rewards-Based Crowdfunding Rewards-based crowdfunding allows backers to contribute in exchange for tangible rewards, which can vary from the product itself to other unique perks. This type is popular among creative projects and startups that wish to offer their product as a pre-sale. When to Use This Method of Crowdfunding This method works best for consumer-focused projects where you can offer your product as a reward to backers. It's suitable for validating product demand before mass production and engaging with your customers directly​​. 4) Debt-Based Crowdfunding Also known as peer-to-peer (P2P) lending, debt-based crowdfunding allows individuals to lend money to a project or business with the expectation of getting their money back with interest. It mirrors traditional loans but from multiple lenders at potentially more favorable terms. When to Use This Method of Crowdfunding Debt-based crowdfunding is appropriate for founders who need traditional loan conditions but prefer a broader base of lenders to minimize risk. It is also beneficial when founders can ensure a steady revenue stream to manage repayments​​. Crowdfunding vs Traditional Fundraising: What are the Differences? Crowdfunding and traditional fundraising serve the same primary purpose—raising money—but differ significantly in their approach and execution. Traditional fundraising typically involves seeking substantial sums from a few donors, such as angel investors, venture capitalists, or banks, and often requires a detailed business plan, credit checks, or proven business history. It can be a lengthy process with a lot of personal interaction and persuasion. In contrast, crowdfunding is usually conducted online and aims to gather smaller amounts of money from a large number of people. This method leverages the power of social networks and is accessible to anyone with an internet connection. Crowdfunding campaigns provide immediate feedback and market validation, as they allow the entrepreneur to gauge interest in a product or concept before fully committing to production or scaling. Moreover, crowdfunding can offer more than just financial benefits; it can also provide publicity, community engagement, and customer feedback​​​​. These fundamental differences make each method suitable for different types of projects and funding needs, with crowdfunding often being more accessible and engaging, while traditional fundraising can offer more significant amounts of capital and potentially fewer stakeholders to manage. Related resource: How to Secure Financing With a Bulletproof Startup Fundraising Strategy Fundraise the Right Way With the Help of Visible Crowdfunding not only helps raise the necessary funds for your venture but also connects you with a community that can offer support and feedback. If you are also interested in finding traditional investors and accelerators check out our Connect Investor Database. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VCs and accelerators who are looking to invest in companies like you. Check out all our investors here and filter as needed. As you embark on your fundraising journey, consider leveraging platforms like Visible to streamline your efforts. After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.

The last few years have been interesting for Fintech as we've seen both startups and established companies start to rethink the financial industry in order to adapt to a world that was rapidly changing thanks to crypto, blockchain, and the pandemic. Related resource: 14 FinTech Startups Shaping the Future of Finance Relevant trends from the past few years include: A surge in investments and interest in crypto and blockchain Financial services and products broadened as more partnerships were created thanks to embedded banking A shift from legacy infrastructures to core banking systems Fintech’s reach expanded to regions of the world that needed it most due to broken financial systems such as Southeast Asia, Africa, and Latin America There was a focus on innovation and global opportunities from VC’s and companies who are looking to take advantage of the increasing need for change within the Fintech industry Recent Investment highlights: (source) “Record number of fintech deals drives total investment to $210 billion in 2021” “Blockbuster year for crypto and blockchain, with $30 billion in investment globally” “‘Buy now, pay later’ space seeing large deals across jurisdictions” “Increasing focus on core banking replacements” “PE investment in fintech space more than doubles previous high” What we can take away from this is that fintech is emerging to be the leading sector within investments and 2022 will be a year of increased optimism and interest not only within Fintech but subsectors (such as Defi), which are well positioned to keep evolving and make a huge impact on the world and the financial system as we know it. There is a huge need for modernizing core banking platforms and even replacing banking systems- making it the best time to launch a fintech startup as well as invest in one. TechCrunch conducted interviews with some of the top VCs within the fintech space and said the two biggest topics that are spiking the interest of investors are crypto and Latin America investments. Others have said that there is also an increasing interest in B2B payments, BNPL (buy now, pay later platforms), embedded services (embedded lending, embedded insurance and embedded capital markets businesses- source). KPMG’s top predictions for the fintech market globally in 2022: (Source) A growing number of banks will offer embedded solutions There will be increased regulatory scrutiny of embedded finance offerings Fintechs will focus on branding themselves as data organizations ESG-focused fintechs will have a big growth trajectory There will be a stronger focus on dealmaking in underdeveloped regions. Unicorn status will lose some of its luster in developed markets, but remain key in emerging ones Related Resource: 15 Cybersecurity VCs You Should Know Related Resource: 14 Gaming and Esports Investors You Should Know Visible looks to help connect founders with investors all over the world. Below, we highlight 10 of our favorite FinTech venture capitalists. Search through these investors and 13,000+ more on Visible’s Connect platform. FinTech Collective Location: New York, New York, United States About: The firm is currently investing out of its third fund, a $200m early-stage fund with a focus on capital markets, wealth and asset management, banking-lending-payments, and insurance. The firm actively invests in decentralized finance (“defi”) opportunities across these segments. Thesis: Our ambition is to create the future of financial services, bringing transparency and choice to developed markets and financial connectivity and socio-economic mobility to developing markets. Investment Stages: Seed, Series A, Series B Recent Investments: Qlub NYDIG Anyfin Accel Location: Palo Alto, California, United States About: Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, CrowdStrike, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, FreshWorks, Jet, Qualtrics, Slack, Spotify, Supercell, UiPath and Vox Media are among the companies the firm has backed over the past 35 years. Thesis: We partner with exceptional founders with unique insights, from inception through all phases of growth. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: NiYO Solutions Coast Genesis Global Anthemis Group Location: New York and London About: Our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of startups, investors, entrepreneurs, institutions, academics, and visionaries to converge, we believe we can solve the financial services world’s most pressing challenges faster, better and for the benefit of all. Thesis: Invests in startups that leverage technology to significantly impact the financial system. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth, Early Stage, Startup Studio (Lab) Recent Investments: Atom Bank tide Flat.mx Related Resource: 15 Venture Capital Firms in London Fueling Startup Growth RRE Ventures Location: New York, New York, United States About: RRE Ventures is a New York-based venture capital firm that offers early-stage funding to software, internet, and communications companies. Investment Stages: Series A, Series B Recent Investments: Venmo Bol Capitalize Greycroft Location: New York, New York, United States About: Greycroft is a venture capital firm that focuses on technology start-ups and investments in the Internet and mobile markets. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Procurated CyberFortress Kandji Insight Partners Location: New York, New York, United States About: Insight Partners is the most trusted scale-up firm in the software industry. Thesis: We support companies in good times, as well as challenging ones. Investment Stages: Pre-Seed, Seed, Series A, Series B, Series C, Growth Recent Investments: ncino checkout.com coast QED Investors Location: Alexandria, Virginia, United States About: QED Investors actively supports high-growth businesses that use the information to compete — and win. Investment Stages: Seed, Series A, Series B Recent Investments: zibo bitso Index Ventures Location: San Francisco, California, United States About: They are an international venture capital firm based in London, San Francisco and Geneva Thesis: Other firms invest in deals, Index invests in people. A deal is transactional. Relationships endure, and ours are based on curiosity, thoughtfulness, and deep conviction. Investment Stages: Seed, Series A, Series B, Series C, Growth Recent Investments: CoverWallet Savvy Wealth Fireblocks Related Resource: The 11 Best Venture Capitals in San Francisco Better Tomorrow Ventures Location: San Francisco, CA About: BTV is an early stage fintech focused fund that leads rounds in pre-seed and seed-stage fintech companies globally. We take a pretty broad view on fintech, and many vertical SaaS and marketplace businesses fit in our purview too. Thesis: We invest for a better future (hence the name); financial technology is a great way to improve people’s lives. Investment Stages: Pre-seed, Seed Recent Investments: Brick CreditBook Clubbi Bain Capital Ventures Location: Boston, Massachusetts, United States About: Bain Capital Ventures is a global private equity firm with over $17 billion of assets under management. Since 1984, the firm has invested in over 200 companies, with such notable successes as Aspect Development, DoubleClick, Gartner Group, and Netfish Technologies. Bain Capital Ventures manages a $250 million fund. Bain Capital Ventures partners with exceptional management teams to help early stage companies become long-term leaders in their markets. Thesis: We partner with disruptive founders to accelerate their ideas to market. Investment Stages: Pre-Seed, Seed, Series A, Series B, Growth Recent Investments: Orum Material Bank Reonomy American Express Ventures Location: Palo Alto, California, United States About: Seeks to invest in innovative startups in order to enhance the company’s core capabilities and accelerate their efforts in consumer commerce and B2B services. Investment Stages: Seed, Series A, Series B, Series C, Growth Recent Investments: Finmark Pinwheel Statespace SignalFire Location: San Francisco, California, United States About: SignalFire is a venture capital firm that invests in seed-stage companies and breakout companies. Investment Stages: Seed, Series A Recent Investments: Tradeswell PlanetScale ​​Ro Torch Capital Location: New York, New York, United States About: Torch Capital is a brand-focused investment firm built to shepherd the next generation of industry changing mission driven consumer companies. We invest in consumer platforms, products and services from healthcare, fintech, and food & beverage, to digital media, e-commerce and marketplaces. Investment Stages: Pre-Seed, Seed, Series A Recent Investments: Embed Lili Little Otter Mouro Capital Location: London, England About: Mouro Capital is a venture capital firm that backs entrepreneurs and start-ups who are shaping the future of financial services. With $400m AuM and the support of Banco Santander, the fund targets early to growth stage investment opportunities across Europe, North America and Latin America. The fund brings fintech expertise, a global network and a track-record of successful investments and market recognition from our core investment team to scaling start-ups. Recent Investments: a55 Digital Asset Holdings Curve Canaan Partners Location: Westport, Connecticut, United States About: Canaan Partners invests more than money in a company—they invest their time, experience, knowledge, connections and team-oriented approach. They place tremendous value on creating working partnerships with entrepreneurs and management teams who have the character and the drive to succeed. Prominent among Canaan’s resources is the breadth of operating, managerial and financial experience. Investment Stages: Seed, Series A, Series B, Growth Recent Investments: Kickpay CircleUp Italic Related Resource: Atlanta’s Hottest Venture Capital Firms: Our Top 9 Picks Additional FinTech Resources Downloadable KPMG’s Pulse of Fintech H2’21 Download this edition for: Global and regional analysis with key investment data and insights Top fintech trends for 2022 and beyond Interviews with Quantexa and Thought MachineFintech segment insights for a deeper dive into payments, insurtech, regtech, Wealthtech, cybersecurity, blockchain and cryptocurrency Spotlight articles on Emerging Markets: LATAM and Africa. Other Investor Lists 15 Venture Capital Firms Investing in VR 10 Gaming and Esports Investors You Should Know 10 Venture Capitalists Investing in Cannabis 60+ Active Seed Stage SaaS Investors & Fundraising Tips 23 Top VC Investors Actively Funding SaaS Startups Exploring VCs by Check Size 10 VCs Investing In Food & Bev Startups 10 Blockchain Investors Founders Should Know 10 VC Firms Investing in Web3 Companies 15 Direct to Consumer (D2C) VC Investors You Need to Know Start Your Next Round with Visible We believe great outcomes happen when founders forge relationships with investors and potential investors. We created our Connect Investor Database to help you in the first step of this journey. Instead of wasting time trying to figure out investor fit and profile for their given stage and industry, we created filters allowing you to find VC’s and accelerators who are looking to invest in companies like you. Check out all our FinTech investors here. After learning more about them with the profile information and resources given you can reach out to them with a tailored email. To help craft that first email check out 5 Strategies for Cold Emailing Potential Investors. After finding the right Investor you can create a personalized investor database with Visible. Combine qualified investors from Visible Connect with your own investor lists to share targeted Updates, decks, and dashboards. Start your free trial here.

Since launching Visible Data Rooms last month, thousands of founders have leveraged them to distribute fundraising assets and data to their current and potential investors. Most Popular Data Room Folders Using our own data, we were able to pull the most popular “folders” created so far. Check them out below: Legal and Corporate Docs – Confirms your business is a legitimate company (incorporation docs, formation docs, IP, etc.) Financials – In the early days, keep this section light – especially around projections. As you scale from pre-seed to series A, this section will become more important. Be sure the data here matches your pitch decks, other documents, etc. Team and Stakeholders – This generally goes hand-in-hand with “Legal and Corporate Docs.” This helps investors confirm you have employee structure, contracts, signed PIAAs, etc. Cap Table – Most, if not every investor, will ask for this. Investors want to understand if you have a “clean” cap table. Market Data – Considered a “nice to have” but can still be valuable. Later-stage investors will likely do their own analysis and research here. Every business and investor is different. Be sure to build and share the information that is right for your business. Build a Data Room with Visible Visible Data Rooms integrate directly with Visible Decks, Dashboards, and Updates. Manage every aspect of your fundraise with Visible and spend more time on what matters most — building your business. Give it a try here.

Venture capital can be a game-changer for startups, offering not just financial backing but a whole ecosystem of support. However, it's not without its trade-offs. This article delves into the multifaceted world of venture capital, from the substantial resources and invaluable networks it brings to the potential for diluted ownership and pressure for rapid growth. Whether you're considering venture capital for your startup or simply curious about its implications, this guide will provide you with a balanced perspective. Advantages of Venture Capital for Startups Venture capital offers a plethora of advantages to startups that go beyond mere financial investment. It's about injecting your business with the resources, knowledge, and networks needed to thrive in competitive markets. Let's explore how venture capital can catalyze your startup's growth and success. Related resource: How to Find Venture Capital to Fund Your Startup: 5 Methods Access to Significant Capital Venture capital provides startups with significant capital that can be pivotal for scaling operations, research and development, and entering new markets. Unlike traditional financing, which may be limited or come with stringent repayment terms, venture capital offers a substantial financial runway, allowing startups to focus on growth without the immediate worry of financial constraints. Expertise and Mentorship Beyond capital, venture capitalists often bring a wealth of expertise and mentorship to the table. They offer strategic guidance, industry insights, and operational advice that can help navigate the complexities of scaling a startup. This mentorship can be invaluable in avoiding common pitfalls and accelerating growth. Networking Opportunities Securing venture capital also opens the door to a vast network of industry contacts, potential partners, and clients. These connections can be instrumental in business development, partnerships, and even future fundraising efforts. The right introductions can significantly accelerate a startup's trajectory. Credibility and Prestige When a VC firm decides to invest, it does so after thorough due diligence, assessing the startup's potential for growth, market opportunity, and the strength of its team. This rigorous evaluation process means that once a startup secures venture capital, it's seen as having passed a critical test of viability and potential. This perception can be incredibly beneficial in several ways: Attracting Further Investment: With the initial VC backing, other investors are more likely to take an interest in the startup. VC funding can serve as a validation of the startup's potential, making it easier to raise additional rounds of funding. The initial VC investment often acts as a catalyst for attracting more capital, as it reduces the perceived risk for subsequent investors. Talent Acquisition: Top-tier talent looks for opportunities that offer both growth potential and stability. VC funding enhances a startup's appeal to such individuals by providing evidence of both. The funding signifies that the startup has enough resources to scale and supports its long-term vision, making it a more attractive place for ambitious professionals looking to make their mark. Market Positioning: A startup with venture capital backing can also command more attention in its market. Customers, suppliers, and partners often view VC-funded startups as more credible and stable, making them more likely to do business with them. This enhanced credibility can be crucial for startups looking to establish themselves in competitive markets. Brand Visibility: VC firms often have extensive networks and platforms for promoting their investments. When a startup secures VC funding, it can benefit from this exposure, increasing its visibility in the industry and among potential customers. No Repayment Requirement One of the most significant advantages of VC funding over traditional loans is the absence of a repayment obligation if the startup fails. The advantage of not having to repay the investment if the startup fails frees entrepreneurs from the weight of debt, allowing them to focus fully on their vision and growth. This model not only facilitates innovation and risk-taking but also builds a partnership framework between investors and founders, where both parties are equally invested in the success of the venture. This risk-sharing model has several advantages for startups: Encourages Risk-taking: Knowing that failure will not result in crippling debt allows entrepreneurs to pursue innovative, high-risk ideas that could lead to significant market disruptions. Focus on Growth: Without the burden of debt repayment, startups can channel their resources into growth and development rather than diverting funds to service debt. Attracts Talent: The potential for significant returns without the personal financial risk associated with debt can make startups more attractive to top talent. Investor Support: Since VCs have a vested interest in the startup's success, they are more likely to provide support, advice, and connections to help the business grow. No Debt or Interest In traditional financing models, such as bank loans or debt financing, the borrower is required to repay the principal amount along with interest, regardless of the business's success. This obligation can place a considerable strain on a startup's cash flow, especially in its early stages when revenues may be unpredictable or non-existent. Moreover, in the event of business failure, entrepreneurs may still be liable for the outstanding debt, which can lead to personal financial ruin in the case of personally guaranteed loans. Venture capital, on the other hand, is invested in exchange for equity in the startup. VCs are well aware of the high risk associated with these investments, including the possibility that the startup may fail. Their return is contingent upon the success of the business, typically realized through an exit event such as an initial public offering (IPO) or acquisition. If the startup fails, the venture capital invested does not need to be repaid. This setup aligns the interests of the investors with those of the founders, as both parties succeed or fail together. Related resource: Pros and Cons of Crowdfunding for Your Startup Scalability Venture capital is a critical accelerator for startups aiming to make a market impact, providing not just funds but a springboard for rapid growth and scalability. This financial backing enables startups to swiftly penetrate and expand in markets, pushing innovation and product development at an accelerated pace. It facilitates the hiring of top talent essential for scaling operations and executing ambitious growth strategies. Furthermore, venture capital empowers startups to engage in strategic partnerships and acquisitions, enhancing their market reach and product offerings. It supports substantial investments in marketing and brand building, crucial for establishing market presence and driving customer acquisition. Additionally, venture capital aids in geographic expansion, opening doors to new markets and global opportunities. Disadvantages of Venture Capital While venture capital can be a powerful tool for startups, it's not without its disadvantages. The pursuit of venture funding comes with considerations that can affect your startup's trajectory and founding principles. Let's examine the potential downsides to be mindful of. Dilution of Ownership Accepting venture capital typically involves exchanging equity in the startup for financial investment, leading to a dilution of the founders' ownership stake. This means that founders own a smaller percentage of their company after the investment than they did before. While this influx of capital is crucial for growth, it also results in founders sharing control and potential future profits with the venture capitalists. This trade-off is an essential consideration for startups, as it impacts the founders' influence over company decisions and their share of the financial rewards in the event of the company's success. Less Control Venture capital investors frequently seek a say in business decisions as a condition of their investment, potentially leading to diminished control for the original owners. This involvement can range from strategic direction to operational changes, reflecting the investors' stake in the startup's success. While their expertise can be beneficial, it may also result in founders having to compromise on their vision or make decisions aligned with the investors' goals, rather than their own. This dynamic underscores a critical trade-off in venture funding: accessing significant capital and expertise at the cost of sharing decision-making power. Pressure for High Growth VC funding often comes with the expectation of rapid, substantial returns, placing intense pressure on startups to grow quickly. This urgency for growth can sometimes push startups towards aggressive expansion strategies that may not align with sustainable or prudent business practices. The drive for quick scalability and market dominance can lead to short-term decisions that prioritize speed over stability, such as overextending financial resources, neglecting quality control, or unsustainable customer acquisition practices. While rapid growth can propel a startup to success, this pressure can also risk its long-term viability and ethical standing, challenging founders to balance investor expectations with sustainable development. Length and Complex Process Securing venture capital is a time-consuming and complex process, marked by an extensive due diligence phase that demands significant attention and resources from startup founders. The journey to obtain venture funding involves multiple steps, including preparing detailed business plans, financial projections, and engaging in negotiations with potential investors. Venture capitalists conduct thorough due diligence to assess the viability, market potential, and team capability of the startup. This scrutiny can include deep dives into the startup's financials, business model, competitive landscape, legal compliance, and more. The process ensures that investors are making informed decisions but also requires startups to be transparent and well-prepared. This exhaustive vetting process, while necessary for securing investment, can divert founders' focus from day-to-day operations and delay immediate business development efforts. The complexity and length of securing venture capital not only test a startup's readiness and resilience but also its capacity to balance long-term fundraising goals with short-term business needs. Focus on Exit Strategy Venture capitalists typically enter investments with a clear exit strategy in mind, aiming for a significant return on their investment through a sale, merger, or public offering of the startup. This focus on exit events is fundamental to the venture capital model, as it dictates the timeline and manner in which investors expect to realize their profits. However, these exit strategies may not always align with the long-term vision of the startup founders. Founders often embark on their entrepreneurial journey with a passion for their product or service and a vision for long-term growth and industry impact. In contrast, venture capitalists' emphasis on an exit within a certain timeframe can pressure startups towards rapid scaling and market positioning that prioritizes short-term valuation increases over sustainable growth and development. This misalignment can lead to strategic conflicts, where founders are pushed to make decisions that optimize for an exit event rather than the long-term health and vision of the company. Navigating these differing objectives requires careful negotiation and alignment of interests between founders and their venture capital partners to ensure that the company can achieve both its immediate goals and long-term ambitions. Alternatives to VC Funding For startups wary of the potential downsides of venture capital, there are several alternative funding options available. These alternatives can offer different advantages, from less dilution of ownership to more aligned growth strategies. Let's explore a few of these options. Related resource: Types of Venture Capital Funds: Understanding VC Stages, Financing Methods, Risks, and More Angel Investments Angel investments represent a vital source of capital for startups, typically coming from affluent individuals who provide funding in the early stages of a company's growth. Unlike venture capitalists, who usually invest through funds with money pooled from various sources, angel investors use their own wealth to support startups they believe in. These investors often offer capital in exchange for equity in the company, acquiring a stake in the startup's future success, or sometimes through convertible debt, which can later be converted into equity. Angel investors not only provide financial backing but can also bring valuable expertise, industry connections, and mentorship to the startup. Their investment can be crucial during the initial phases when the startup may not yet qualify for venture capital or bank loans due to the high risk associated with early-stage ventures. By opting for angel investment, founders can secure the necessary funds to kickstart their operations, refine their product, or expand their market reach, all while potentially gaining a supportive advisor in their angel investor. This form of investment offers a blend of financial support and personal engagement, making it an attractive option for startups seeking both capital and guidance. Revenue-based Financing Revenue-based financing is a funding model where investors provide capital to startups in exchange for a percentage of the company's future revenues until a predetermined amount is repaid. This form of financing offers a flexible repayment schedule that directly correlates with the business's performance, making it distinct from traditional equity or debt financing. In this model, repayments increase when revenue is high and decrease during slower business periods. This flexibility is particularly advantageous for startups with fluctuating revenue patterns, as it aligns repayment obligations with their financial capacity. Unlike equity financing, revenue-based financing does not require founders to give up ownership stakes, nor does it impose fixed repayment terms like traditional loans. Instead, the total repayment amount is usually a multiple of the invested capital, agreed upon at the outset. Revenue-based financing is attractive for businesses that generate consistent revenues but may not yet be profitable or for those looking to avoid dilution of ownership. It allows startups to access the capital they need for growth, such as expanding operations, entering new markets, or increasing marketing efforts, without the pressures of equity dilution or rigid debt schedules. This model promotes a partnership approach, with investors directly vested in the company's revenue growth and success. SBA Loans Small Business Administration (SBA) loans are a government-backed financing option designed to support the growth and sustainability of small businesses. These loans are facilitated by the SBA, a U.S. government agency, in partnership with banks and lending institutions. The SBA guarantees a portion of the loan, significantly reducing the risk to lenders and enabling more favorable terms and lower interest rates for borrowers compared to traditional bank loans. SBA loans are known for their relatively lower interest rates and longer repayment terms, making them an attractive option for startups and small businesses seeking funding without the burdensome costs associated with conventional loans. The variety of SBA loan programs caters to different business needs, from purchasing equipment and real estate to providing working capital and funding for expansion projects. One of the key benefits of SBA loans is their accessibility to businesses that might not qualify for standard bank loans due to requirements for higher credit scores or collateral. The SBA's backing means that businesses with solid plans and potential for success have a greater chance of obtaining the financing they need, even if they're in the early stages of growth or lack extensive credit history. However, the process of applying for an SBA loan can be more complex and time-consuming than other financing options, requiring detailed business plans, financial statements, and projections. Despite these challenges, the favorable terms, lower interest rates, and government support make SBA loans a compelling choice for small businesses and startups looking for a stable and affordable source of funding. Connect With the Right Investors for Your Startup With Visible Venture capital offers startups a blend of significant capital, expertise, and networking opportunities, propelling rapid growth and market impact. However, it also brings challenges such as diluted ownership and intense pressure for quick returns. Alternatives like angel investments, revenue-based financing, and SBA loans present different benefits and trade-offs, catering to various startup needs. For founders navigating these options, Visible provides a comprehensive platform to find and connect with the right investors, track a fundraise, share a pitch deck, and manage stakeholder communications effectively. Give Visible a free try for 14 days here. Related resource: A Guide to How Venture Capital Works for Startups and New Investors