What is the purpose of a pitch deck?

A pitch deck is arguably the most important tool a founder has during the earlier stages of a startup's life. It allows them to connect with potential investors and open the gates of venture capital funding, and it's usually the only way of doing so. Thus, a successful and compelling pitch deck will allow a startup realize its growth potential.

The purpose of a pitch deck is manifold: it outlines the business idea and business model to convey the company's uniqueness to potential investors, it correctly identifies the market size and market opportunity, and if the startup has grown enough, it includes financial projections and other key metrics.

You may be thinking "Why is all that important?" Gaining a deep understanding of the importance of a pitch deck is crucial for both founders and investors. Here are several reasons why each component of a pitch presentation plays a vital role in attracting interest and securing funding.

Functions of a Pitch Deck

• A pitch presentation serves as a visual aid that encapsulates the essence of your business idea.
• It structures your narrative in a coherent way, allowing you to present your thoughts clearly and effectively.
• Investors receive countless pitches, and a well-designed deck helps your concept stand out from the crowd.
• It easily communicates intricate concepts of your business plan and market strategy.

As a visual aid

Like any piece of visual media, a presentation must be aesthetically pleasing and well-designed. Be conscious that the slides are supposed to be a complement to what you're saying. Instead of writing full paragraphs, include only key figures and evocative sentences, or better yet, relevant pictures that illustrate what you're saying.

Experienced designers specialized in pitch decks can make a huge different in the impression your presentation makes on potential investors. Hire our team to redesign your deck today.

Redesign your pitch deck

As a narrative device

The best way to structure your pitch deck is by making it tell a compelling story. A successful pitch deck will showcase your key team as the heroes of a story, the market potential you're tackling as the obstacles to overcome, and your unique business model as the power to do so.

When following the three-act structure, your pitch deck presentation will be sure to convey your company's unique proposition successfully and secure follow-up meetings with potential investors.

If you need help structuring your pitch deck, you can recruit our business analysts - a team of expert startup storytellers.

Talk with our sales team

As a Way to Showcase Financial Projections

If your startup has made progress and has tangible metrics, including financial projections in your slide deck can be a way to provide additional reassurance to your investors that your company is on the right growth path. A solid competitive analysis, plus a breakdown of your revenue model and sales strategies, are the best ways to back up your funding request.

Financial modeling for startups can be a challenge if you've never done it before, that's why we've made a free template for you to grasp the basic concepts of driver-based financial modeling.

Download a free financial model template

Tailoring Your Pitch Deck for Its Purpose

Adjusting to Different Funding Stages

There are certain nuances to the various funding stages of a startup that you must consider when crafting your pitch deck. Each stage —pre-seed, seed, Series A, Series B, and beyond— comes with its own set of expectations from investors, and your slide deck should reflect these differences. Adapting your deck effectively will ensure you dodge common red flags that are obvious to experienced investors but invisible to rookie startup founders.

Seed Stage: Laying the Foundation

At the seed stage, your pitch deck should focus on the foundational aspects of your business idea. Investors at this level are often looking for innovative concepts and the potential for scalability. The key components to emphasize include:

• Problem Statement: Clearly articulate the problem you intend to solve and why it matters.
• Solution Overview: Present your unique solution, highlighting its potential to disrupt the market.
• Market Opportunity: Include data on market size and growth potential to demonstrate the opportunity.
• Team: Showcase the founding team’s credentials and expertise, as early-stage investors are heavily invested in the people behind the idea.

Visuals should be simple yet impactful, using charts or infographics to convey your vision without overwhelming potential investors with data.

Series A: Proving Viability

Transitioning to Series A funding indicates that your startup has gained some traction. At this stage, investors will want to see evidence that your business model is viable and can generate revenue. Adjust your pitch deck to include:

• Traction Metrics: Showcase key performance indicators (KPIs) such as user growth, revenue figures, and customer engagement metrics.
• Business Model: Clearly define how you plan to make money, including pricing strategies and any existing partnerships or contracts.
• Market Validation: Provide testimonials, case studies, or quotes from early adopters to validate your solution.
• Financial Projections: Present realistic, data-driven financial forecasts that outline expected growth over the next few years.

This is a critical stage to emphasize growth potential, so keep your visuals clean and professional, using graphs and charts to illustrate your achievements and projections.

Series B and Beyond: Scaling Up

By the time you reach Series B, your focus should shift to scaling your operations and capturing a larger market share. Investors in this stage are looking for a proven track record and an ambitious growth strategy. Key adjustments to your pitch deck include:

• Expansion Strategy: Detail your plans for scaling, whether through new products, geographical expansion, or increased marketing efforts.
• Competitive Landscape: Offer a thorough analysis of your competition and articulate your unique value proposition.
• Robust Financials: Present in-depth financial data, including historical performance, detailed forecasts, and clear funding requirements.
• Team Expansion: Highlight plans for team growth and key hires that will help accelerate your scaling efforts.

At this stage, visuals should reflect professionalism and strategic foresight, with a mix of data and storytelling that conveys your vision for the future of the company.

Audience Considerations

Depending on the person you'll be presenting to, and the circumstances in which you do it, your presentation must adapt accordingly. There are types of pitch decks for different scenarios:

• Full Investor Pitch Deck: This is the most common type and aims to attract funding from venture capitalists or angel investors. In this case, your presentation should focus on financial metrics, market opportunity, and a solid business model. Use detailed graphs and visuals to illustrate your growth and future potential. Highlight your team’s expertise and how it aligns with your business goals.
• Demo Day Pitch Deck: Typically more detailed than an elevator pitch yet still concise, these pitch decks are prevalent during demo days when multiple startups present in succession, making time a precious commodity. Founders generally have a strict five-minute limit for their presentations. Given that these pitches often occur in large auditoriums, the emphasis should be on the presenter. To effectively engage the audience, the deck should feature minimal text and prioritize visuals to captivate attention and convey your message quickly.
• Elevator Pitch Deck: This deck, as the name implies, is designed to convey your pitch in just 1-2 minutes—think of it as a brief encounter in an elevator with a potential investor. Essentially, these decks are streamlined and succinct presentations of your key ideas. Prioritize the core elements: the problem you’re addressing, your solution, traction gained, market potential, intended use of funds, and projected growth.

Conclusions

The purpose of a pitch deck transcends just being a presentation tool; it is a strategic instrument designed to promote your business idea, garner interest, and secure investment from key players in your industry and investment space. The clarity and organization of your pitch deck can significantly impact your success in attracting the support you need, whether it's funding, partnerships, or mentorship.

Remember that each pitch deck serves a specific objective and caters to different audiences, emphasizing the importance of tailoring your content.

Of course, visuals play a critical role in enhancing the overall effectiveness of a pitch deck. High-quality graphics, infographics, and relevant data hold the audience's attention and help to clarify complex information. Keep in mind that a well-executed pitch deck is not just a list of bullet points; it is a storytelling platform where you can reveal your passion and the potential impact of your business.

If you need some help structuring your pitch deck, get in touch with our team anytime and we'll be happy to work together with you.