So, you wish to become an investment pitch deck wizard with the capital to back up the entrepreneurial venture you have always dreamed of. With some easy tips, your journey will be optimized for overwhelming success. Brace yourself for a trip through success avenue.
Pro Tip # 1 - Know your audience
1. Angel Investor
The Angel Investor is your best bet for early- stage investment. They typically write smaller check sizes for early-stage companies. The key to engaging this audience is to understand they don't want to just hand you a check. Invite them into the mission and treat them as members of your team. Angel investors usually invest their personal capital so trust and rapport is the most critical element.
2. Venture Capitalist
When engaging an audience in the VC world, it is important to understand their own fund structure. The 2 & 20 model is the most popular fund structure. The limited partners get paid 20% of returns and the fund manager receives 2% of the total fund as management fees. This is critical to understanding your audience because you cannot go back once you receive institutional capital, and they conduct the heaviest and broadest due diligence. A massive upside to institutional capital is effective business development support provided.
Pro - tip # 2 - The DO's and Don't of investor pitch decks
1. Be straightforward:
Investors are usually busy, so it is not a great idea to beat around the bush and omit the chance to get your awesome pitch and important detail out there.
2. Do your research:
Just like the investor should understand your business model, and know who you are, you should try to also get to know your investor. Ask about their previous investments, and show you value their brains and not just their bills. Perhaps consider talking about their hobbies and get to know them better if they will be investing their time and money in your company.
1. Do not belabor the problem
It is understandable that you want to talk about the solution to a problem, however, it is a favorable approach to go over the pain points as to an introduction on why the product exists, and what it is used for. Investors may want to know more about your business model, and if you have what it takes to grow.
2. Do not focus on market size:
Contrary to popular belief, a focus on market size may not be favorable in a concise pitch to an investor. Chances are that the market is probably large, however, the real question is about market readiness and timing. Investors are going to be much more impressed if you can understand the market is ready for your product and if you are introducing it at an ideal time.
Remember that confidence with competency and preparedness are key factors to success. Also, do remember to have your financials straight and ready to deliver on your promises to the investor.
For additional advice on pitch decks, visit getdecko.com