We launched
You‘ll be told it’s an uphill task to reach the last stage of the funding process. Let us spill the (sweet) beans for you here now. It is not (uphill task) if you get the pitch of the idea to make the noise for you, half of the battle is won right there! A deck saying the intent and impact it is going to make in the world is all you would need to put the first step right there into success.
After evaluating the pitches that we received, we thought we should share the essential steps which you should keep in mind while preparing the deck. As it was important to share that it has been a noticeable observation (not a rule) that VCs invest in only 2-3% of the pitches they evaluate during a year (And mind it a good VC/Investor normally meets hundreds of startups a year). Rest are rejected during/right after the pitch is shared.
Below from here, we are sharing a few key pointers which should be considered while preparing a deck in order to make that 2%.
What is the motivating factor for Angel Investors/VCs to invest in your early-stage venture?
Let’s understand the viewpoint of Investors here first, the pitch should be clear in answering what is that Investor is gaining. This might sound very common to you like “Duh! We know we need to tell Investors - you gonna gain a lot by investing in us”. We know you know! But do you know Investors are looking for long term relationship other than just making money (and true, they really want to make money). So let’s go in a bit detail now. Sector, Market, Team, Product/Service and Execution are the major factors that help investors make the right decision.
Sector and Market: The deck should explain the sector, your startup supports and the size of the market. This is the main factor that gets the eye and ears of investors while estimating the ultimate potential of the business. (One thing to keep in mind, the investor of particular round wants to make sure whether the startup will be able to raise money in next rounds as the value of investment increases in further funding rounds.)
Product/Service: Your startup should really be innovative to give you a real-world competitive advantage (launching first of its kind product/service or bringing huge efficiency/upwards revenue spike in the existing processes). An important aspect is that the pitch you are going to showcase should say all this loud and clear.
Team: Well this is the part where you can boast a little. You should have a team which can handle 10x (Multiple X) growth over the next few years. And might you not have this dream team with you today, you must have a concrete plan (vision) to man up this team real quick when need be. Again, share this well in the pitch.
Now below we have noted down some miscellaneous questions for you that are ‘good to have’ answered in your pitch.
- What is the big customer problem you are solving and how big is the problem?
- Can multiple players exist?
- Is your product/service bringing incremental and significant change?
- Who is the competition (both direct and indirect)?
- What is the competitive advantage?
- How many paid customers will you get in next 2-36 months and how will you acquire your customers?
- How much money will you make and at what cost?
- What is your contingency plan, in case of any failure - not getting the funding, failing as a service or product altogether, failing as a team?
And what we believe is you need this contemplative deck as much as investors need, to figure out your strengths, weaknesses and the headway you have. it will bring a lot of clarity just not for the investors but for you as a start-up as well. So before you introduce or write a cold email to investors, preparing this deck for yourself will be great.
Also for your benefit, here is a sample format for the deck. (This might not be a perfect deck yet we have tried our best to include a lot of pointers that early-stage startups should keep in mind while preparing one)
All the best. HostelFund is evaluating Student Startups. Please apply here.
Link of Sample Format: Download Here