The Essential Guide to Creating a Pitch Deck:
As equity crowdfunding becomes more popular, businesses are looking for new ways to reach potential investors. What better way than with a pitch deck? This article will teach you how to create the perfect pitch deck.
Pitch decks are a great way to showcase your business and equity crowdfunding campaign. They should include all the information that investors will need to make their decision, such as the problem, solution (market segment), business model, traction metrics, team members, and advisors.
It’s also important to include company milestones and financial projections for future years. Investors want to see how much money you’ve raised so far, why it’s important, and what you plan on doing with it moving forward. You’ll also want to attach an executive summary at the beginning of your pitch deck explaining who you are, what industry you’re in, where your company is based etc. This can be included within the body copy or attached as a separate document.
- Problem: How many people have the problem you solve? What is their size and influence? Who are your competitors in this space?
- Solution (market segment): Which market(s) will your product or service target? Why does it appeal to that particular demographic/group of consumers, etc.? Why do they need what you’re offering specifically at this point? Why are you uniquely qualified to serve them better than anyone else on the market right now with your expertise, experience, network connections, etc.?
- Business model: How much money can be made per transaction or year through sales of products/services offered at each price point over time vs. how much it costs to produce, distribute and advertise the products/services offered? How much equity do you plan to hand over in return for that money at each price point over time vs. how much equity will your business retain as a result of offering equity stakes in it to outside investors?
- Traction metrics: What are the most important growth benchmarks (in terms of user count, transaction volume, content consumption, etc.) or other key performance indicators companies should track regularly if they want their businesses to be successful going forward? At what rate have these numbers been growing historically and why has there been such an increase lately (this is also where you can include information about any recent awards or other recognition your company’s received)? Which competitors seem particularly well-positioned right now in terms of reaching these growth thresholds and why? How does your company compare to them in this regard right now (and how well do you think you’re positioned for the future)?
- Team members: Who are they, what is their relevant background/education/experience etc.? Why did each member of the team agree to work with one another on this equity crowdfunding campaign specifically? What strengths will they bring that others might not be able to offer at such a crucial stage in the equity crowdfunding process?
- Advisors: Who are they, why should investors trust them and rely upon their expertise going forward if it’s been displayed previously by other companies or organizations successfully raising money through equity crowdfunding campaigns like yours before? If there’s an equity crowdfunding campaign that’s particularly similar to yours, which one is it and why are you better off? Who would be willing to vouch for these individuals if the opportunity arose in some way or another (through a phone call with potential investors perhaps)?
- Milestones: What were your most important milestones over the last year, quarter, etc.? Why did they happen when they did? How does this set everything up well moving forward into Q/A periods of equity crowdfunding campaigns like yours specifically? If there are any related companies or organizations who can back up claims made here through their own experiences successfully raising money via equity crowdfunding platforms before, mention them. It will only strengthen the case being presented here.
- Financial projections: Where will your equity crowdfunding campaign’s funds/equity be allocated, over what period and why? What is the estimated ROI of these allocations (and more importantly why does this equity crowdfunding campaign stand to generate it)?
- Risks: Which risks might potential investors face if they were interested in investing into equity stakes for this equity crowdfunding campaign specifically? How can you mitigate their fears by showing them how much has already been accomplished up until now before requesting outside financial support anyway?
It is also helpful to anticipate the lingering questions your potential investors may have and then include those in a questions and answers section. What are some important questions that investors may have about your business or equity crowdfunding campaigns like yours before deciding whether or not to invest any of their money on behalf of companies like yours? Write out answers ahead of time with supporting evidence/data/examples etc. to back them up with if possible (refer your readers here for additional details). Use this section of the equity crowdfunding pitch deck template as a brainstorming area for potential questions and their answers, then pick out anything that seems useful or important enough to include in some way, shape, or form moving forward.
Lastly, close your pitch deck with a “next steps” slide. Include a timeline of what is next, when you will take each one, and explain why doing so will help your business succeed.
If you follow this outline, you’re sure to create a compelling pitch deck that will compel potential investors to join your startup.
