Your pitch deck is your first impression on investors and can be the deciding factor in securing the funding you need to bring your vision to life. Yet, many founders stumble at this point. In our latest "Startup Essentials" piece, we explore insights from pitch deck coach Malcolm Lewis on crafting pitch decks that catch the eyes of investors. Malcolm emphasizes the importance of having two versions: one to send in advance and a more streamlined one for in-person presentations. He also sheds light on why a strong narrative is more effective than a dazzling design.
At its essence, a pitch deck is a fusion of your story and your slides. However, founders often get sidetracked, opting for glitzy designs over a solid, persuasive narrative.
Don’t forget: the story you tell is what matters most. Let’s explore how to build a pitch deck that resonates with investors and positions your startup for success.
What Investors Are Looking For
When reviewing your pitch deck, investors have a common goal: they’re looking to invest in startups capable of dominating markets large enough to deliver a $1B+ exit. Why? Because they need a few standout successes to compensate for the many investments that won’t pan out. This boils down to two critical questions:
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Can you get big enough?
This focuses on your market and growth potential. Evaluate it by considering:
- Market size: Calculate your total addressable market (TAM). How significant is the opportunity?
- Market share: Assess the portion of the market you could realistically capture.
- Exit valuation multiple: Make an informed estimation of the multiple your startup could achieve at exit.
- Target ownership: Understand what percentage of your startup an investor might expect to own at exit.
Your objective is to demonstrate that their potential return matches their fund’s scale. For instance:
( \text{Big enough} = \text{market size} \times \text{market share} \times \text{exit valuation multiple} \times \text{investor ownership} ≥ 1–2x \text{fund size} )
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Are you good enough to get big enough?
This revolves around your product, team, and go-to-market (GTM) strategy:
- Product: Show competitive advantages loved by customers and difficult for competitors to replicate.
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Team: Emphasize expertise in key areas:
- Your target market and ideal customer.
- Your solution’s tech stack.
- Startups, particularly at stages like yours.
- GTM strategy: Highlight:
- A scalable, efficient business model.
- Proven tactics across Marketing, Sales, and Customer Service to nurture and convert leads, and to retain and expand customer base.
3 Easy Steps to Focus Your Pitch Deck
Ensuring your pitch deck is sharply focused on answering critical investor questions is vital. Here’s a straightforward process:
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Outline your deck
List the key sections found in a typical pitch deck: cover, highlights, team, problem, solution, product, competition, business model, market size, GTM, roadmap, financials, and the ask.
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Define one key takeaway per section
Craft a clear statement for each section that encapsulates the main message you wish investors to retain. These become your slide headlines. For instance:
- Cover: "We offer a private-label auction and e-commerce platform for rare coin collectors."
- Business model: "We charge a 1% transaction fee on all purchases via our platform."
- Team: "Our founders have over 30 years of experience building scalable auction platforms for collectibles at Ebay."
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Add supporting details
Supply each key takeaway with 2-3 supporting points or visuals. This becomes your slide content. For example, under "Team:"
- Founder/CEO: Former VP of Collectibles at eBay, expanded eBay’s collectibles business from millions to billions.
- Co-founder/CTO: Former VP of Engineering at eBay, developed scalable auction platforms.
Why You Need Two Versions of Your Deck
A common error founders make is using one pitch deck for every purpose. Instead, create two versions, each serving a distinct purpose:
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The send-ahead deck
- Goal: Secure an in-person meeting with investors.
- Details: This version should be rich in information as it will be reviewed without your presence to clarify. Think of it like a dating profile—just enough to get a "yes."
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The presentation deck
- Goal: Engage in conversation and secure investment.
- Details: Keep it lean and visual. You’ll be presenting the content, so minimize text while maintaining slide headlines for context.
Pro tip: Begin with your send-ahead deck, then trim it for your presentation version.
Final Thoughts
With years of experience as a pitch deck coach, I’ve guided numerous first-time founders in polishing their investor pitches. Before coaching, I spent over three decades building startups—helping one scale from zero to $130M and achieve a billion-dollar IPO within two years. This journey taught me the impact of a focused, compelling pitch.
Remember, your pitch deck isn’t merely a collection of slides—it’s your startup’s story. Keep it straightforward, focus on what investors need to know, and always remember: Your pitch is more crucial than the deck itself.
Malcolm assists first-time founders in perfecting their pitch decks. He collaborates with 1-2 clients monthly on a one-to-one basis. Fun fact: He created the Sequoia pitch deck template, aiding over two million founders in developing superior pitch decks. With over three decades as a marketing exec and startup founder, he also led product marketing for Oracle ERP in the early ’90s, ultimately working for or founding 8 startups, with 4 successful exits, including a $1B IPO.
