Creating a compelling startup pitch deck is essential for capturing investor attention and securing funding. Having reviewed thousands of pitch decks and discussed hundreds with investors, I’ve noticed a few recurring challenges.
Every investor has unique preferences and requirements, while founders bring their own interpretations of what a pitch should look like and what they believe investors want. This often leads to multiple versions of a single pitch deck. Despite these efforts, nearly 90% of pitches leave investors unsatisfied—or worse, confused. Only a small percentage of initial pitches advance to the next round.
Despite these complexities, all investors ultimately seek answers to the same eight key questions. The most effective pitch decks address these questions clearly and persuasively, offering a cohesive narrative about the business. Some answers may require extensive market research, detailed financial models, and deep introspection.
Here’s a comprehensive guide to structuring your pitch deck around these eight essential questions.
1. What is the Problem?
Begin by identifying the problem your startup is solving. Clearly articulate why this issue is significant and who it affects. Use data, testimonials, or industry insights to demonstrate the pain points. Is the problem big enough that investors justify investing in it and have a chance of getting a big return.
– Highlight current inefficiencies or challenges in the market.
– Explain the consequences of these problems if left unsolved.
– Keep your explanation relatable and concise.
– Tell me a story from the customer’s perspective.
Example: Uber in its original 2008 pitch deck for UberCab, outlined issues with the then Taxi service like problems with the Dispatch Systems, Medallion system costing a lot of money and controlling the supply of cabs on the road, aging fleet, hailing not always convenient or worked, lack of transparent pricing, cash only option and security and safety. Lyft followed by fixing the problems that Uber had where they owned their own cars and hired drivers. Lyft said, how about if we let public use their own cars and make some extra cash, and subsidize their car payments and income? Both companies solved serious problems and opened up new opportunities.
2. What is the Product?
Describe your product or service and how it addresses the problem. Think holistic solution. This is time to show a glimpse of your product roadmap so investors can see just how incrementally useful and sticky your solution will be over the years. Single feature products or one-track solution don’t go very far in terms of creating value for your customers and investors.
– Include key features and benefits.
– Provide visuals such as screenshots, mock-ups, or product demo links.
– Compare your solution to the top 3-5 competitors and highlight what sets you apart.
3. Who is the Customer?
Clearly define your target customer base, whether B2B, B2C, or both. You must have genuine empathy with your customers and a deep understanding their pain and challenges. Later on, you will need to show why YOU and YOUR TEAM are the best people to solve your customers’ problems in a unique way. Make sure you have:
– Create customer personas, including demographics, preferences, and purchasing behavior.
– Highlight the unmet needs that your product fulfills.
– Focus on the segments with the most significant potential for growth.
Example: “Our primary customers are mid-sized e-commerce companies struggling to manage personalized customer interactions at scale.”
4. What is the Unique Value Proposition (UVP)?
Your UVP should explain how your product stands out from the competition. Remember if somebody else is already doing it, it’s not unique and makes it very difficult to compete in the market. If you have solved a serious problem in a brilliant smart and innovative way – that’s a winner.
– Focus on the “wow factor” that makes your solution indispensable.
– Highlight technology, design, pricing, or other differentiators.
– Use concise and impactful messaging.
Example: “The first CRM designed specifically for SMBs with AI-driven customer insights and a pay-as-you-go pricing model.” or “we have invented a core technology that is changing the way home window and door glass tints and changes color to save up to 20% of energy usage. We have been granted 25 patents for our technology.
5. What is the Business Model?
Explain how your company will make money.
– Include revenue streams, pricing strategies, and sales models.
– Highlight scalability and profitability.
Example: “We operate on a subscription-based model with tiered pricing for different service levels. Additional revenue comes from integrations and custom consulting services.”
6. What is the Total Available Market (TAM)?
Show the size of your market and its potential. This is where investors can smell bullshit from a mile away. Remember the investors in the room probably know your space better than you and they have done their research before they walked into the room. Be realistic in your numbers and projections.
– Divide TAM into Serviceable Available Market (SAM) and Serviceable Obtainable Market (SOM).
– Use credible data sources to back up your claims.
– Provide realistic revenue projections over the next 5-10 years. I recommend using a realistic percentage of SOM as your revenue projection.
Example: “The best statement I heard by a founder at a pitch competition is “Based on our target market, there are 10 million SOM customers but realistically we think we can win 1 million paid customers in 10 years at $19.99 per month price point with 2% year over year churn.” The investors know that $20M revenue in 10 years is a stretch but achievable. Rather than quoting some obnoxious number like $2B ARR.”
7. Ask & Fund Utilization
State how much funding you’re seeking and how it will be used. Again this is where you need to be realistic. But the investors are looking for how “connected to reality” you are and how “responsible” you will be with their money. Don’t ask for all the money up front and also speculate that once you start generating revenue your needs may change.
– Break down the budget allocation (e.g., R&D, marketing, hiring, and operations).
– Explain how long the funding will sustain the company.
– Highlight key milestones the funding will help achieve.
– How much skin in the game do the founders have.
Example: “We seek $2 million to fuel product development, customer acquisition, and expand the team over the next 18 months.”
8. Team
Introduce your core team and their roles. Why are these founders and early employees the best people to build this product and build this company. What is so special about them. How much subject matter expertise (in each area needed by the company) they bring to the table.
– Highlight relevant experience, skills, and achievements.
– Explain how each member contributes to the company’s success.
– Include advisors if they add strategic value.
Example:
– CEO & Co-Founder: Jane Doe — 10 years of experience in SaaS development.
– CTO & Co-Founder: John Smith — Expert in AI technologies with multiple patents.
Final Tips for Your Pitch Deck:
– Keep it concise: 10-15 slides max. Your background documents, with research and Spreadsheet may be 100’s of pages.
– Anticipate a handful of critical and important “deep dive” questions and have a supporting slide for each in the appendix. Pull them up when and if a relevant question comes up.
– Depending on your space, industry, solution etc, you may want to have a “leave behind” deck. This deck “talks for you” when you are not there to present.
– Use visuals: Charts, graphs, and images to make it engaging.
– Tell a story: Take investors on a journey from the problem to the solution and beyond.
– Practice: Ensure your pitch flows smoothly and confidently.
– No more than a few words on each slide and may be a picture. You want investors to “hear you” and not reading your slides while you are talking.
Answering these eight essential questions thoughtfully will help you craft an impactful pitch deck that captures investor interest and sets your startup on a path to success.
Reach out to me if you have questions or need help building or reviewing your deck or need help raising money.
