Fundraising: Build a Story Line
How Valuable Is A Pitch Deck?
In the process of raising a round of funding, pitch decks create momentum to get through the initial rounds and carry you toward signing term sheets. Pitch decks are the “sizzle” of the fundraise. They’re sexy, contain compelling metrics, and paint the huge opportunity; all in the hopes of receiving the coveted term sheet.
Investors sift through and sit in thousands of pitches every year. So why is your pitch different? What about your process? Your execution? Your team? Standing out amongst the competition is crucial for advancement.
Pitch Decks Are Resumes: Make Yours Targeted
If your metrics are akin to a resume then what is your cover letter? How are you and your company effectively telling your story in a succinct way that matters?
Recruiters only spend 6 seconds looking at a resume, how much time does an Investor spend on your deck? Your deck is just a point in time, a dot. People invest in lines, not dots. Let your fundraising progress create a story line of opportunity and potential, don’t be a dot.
Drip Your Way to Success
Every conversation you have with a stakeholder is your chance to plot a dot in time. Have enough dots, create a trend. Have a trend (ideally a good one) and your fundraising process will be tight, clean and efficient.
Fundraising is a gruesome, long, and tiring experience (for the lucky); not to mention a 24/7/365 job. We can’t promise results, but we can promise to help run a cleaner process. When implementing Visible, we can reduce your total time fundraising, engage potential stakeholders in a more meaningful way and get more initial meetings set.
Building Up Your Pitch Deck
We’ve worked with thousands of entrepreneurs and companies to help distribute their updates, data, and reports; from internal, investor, board member, crowdfunding, potential investors, and more. Visible has provided the tools to tell the story of their company and their data.
So to save you from adding another item on your “how do I…” list, here are some best practices for utilizing Visible’s Updates feature in your fundraising process.
Your overview section provides the high level detail of ‘what does XYZ do?’ and should be simple and concise so that anyone from any background can understand. If there are technical aspects or complex ideas, construct them to be answered/defined outside the overview section (don’t build a block of text that looks like ‘noise’).
Problem & Solution
The problem your company is trying to solve should also be described to show the pain of the issue; generally with a monetary or numeric example (depicting value/market). The problems themselves are important to define and visualize, but the solution builds to the value and at what speed your business model can grow. Provide a story to walk investors through the problem and how your business is the solution.
The business model should be very straight forward; be designed focused when creating this section to make it stand out. This is important to investors because they need to understand how you generate revenue/growth that will not only make you profitable, but will make their investment extremely profitable (think 10x return on investment, minimum). The basis of your business model is their basis in their equation of whether to invest or not.
Market & Competition
Everyone would like to show that they have a massive market and little competition, but make sure you are transparent since investors will either know the landscape or fact check later. If you do have competition, show the main competitors and how you differentiate.
Properly define your market as this shows your research and building blocks to execution. It is important to show the potential market so investors know how the multiple of their investment could grow. Provide any insights you have learned, along with trends and any potential or current clients/users you have.
Especially in early stage companies, there is a review and investment decision based on the people who are executing and building the company. Have a breakdown of the team or key personnel and their background that provides value to the company.
Data should be added into each section, but don’t just throw in a table chart and call it ‘good.’ Some examples of data that is valuable to pitch decks are:
- High Level Financials
- Current User Stats
- Growth & Forecasting
- Investment details
- Success Rates
If you feel like there is more relevant data you want to show or provide a larger data set from a few points you have in your pitch, add an appendix. An appendix allows you to add the extra details that would normally create a ‘noisy pitch deck’, so you can still focus on a nicely designed and visualized presentation.