Now, we all know that perfection is elusive, but we can always try, can’t we?
Whether you are in an actual elevator, at a networking event, speaking to someone face-to-face, or even on the phone, it’s important to have an investor pitch deck that resonates with people. Here, we will explain the difference between an Investor Pitch Deck, a Crowdfunding Investor Pitch Deck, and an Elevator Pitch.
What is an Investor Pitch Deck?
An investor pitch deck is a way for startup or early-stage founders and entrepreneurs to get their point across about their company to potential venture capital or angel investors. It is typically in the form of a PowerPoint presentation consisting of 10-20 slides. It is meant to showcase the company’s product or service, funding requirements, management team, and technology.
What is a Crowdfunding Investor Pitch Deck?
A crowdfunding investor pitch deck, or equity crowdfunding pitch deck, is a way for startup or early-stage founders and entrepreneurs to get their point across about their company to potential investors of a crowd. Instead of pitching to a few investors who may have a specific investment criterion, you are pitching to the crowd, or the general public, about investing in your company. Although you may have a pitch deck prepared in PowerPoint, the objective is to create a Campaign Page on an SEC-registered and FINRA approved Equity Crowdfunding Portal, that utilizes the content prepared in a pitch deck. This gives you the flexibility to elaborate in some areas that you feel are more important, and it also gives you the opportunity to use video and images that you wouldn’t normally be able to use in a PowerPoint presentation.
What is an Elevator Pitch?
If you are in an elevator with an investor that you want to speak to, you have about 30 seconds to get your point across. Now, the likelihood of being in an elevator with an investor doesn’t happen often. However, if you are hustling, you will meet people on a regular basis at networking events, trade shows, and other places that may not allow you much time to speak to them. This is where an elevator pitch comes in handy.
You may think it’s difficult to condense an entire pitch deck into a 30-second elevator pitch, and you would be right! For an elevator pitch, you should really focus on three things:
1. Have a goal in mind
Since the objective is to receive funding, you need to focus on the mutual benefits to your audience.
2. Focus on your unique proposition
Explain what makes you, or your business so special. How is it different? What is it that you can do better?
3. Practice your delivery
Once you know exactly what you want to say in your 30-second commercial, practice the delivery of your pitch. Look in the mirror and pay attention to your tone of voice, facial expressions, and body language. Do you sound confident? Do you sound like someone who knows what they are talking about? Do you have a tone of excitement about your business? These are all things to keep in mind when practicing the delivery of your pitch.
Creating a Crowdfunding Investor Pitch Deck That Gets Noticed
A crowdfunding campaign that includes the content from your pitch deck is one of the most powerful tools to use when seeking investors. It allows founders and entrepreneurs to more readily present their business to the public when raising capital from the crowd.
With that said, here are the important components of a crowdfunding investor pitch deck:
The company mission is where a lot of entrepreneurs got lost in the details. This should not be complicated. You want to articulate your company’s mission in a way that expresses its potential to investors. The mission statement should show the passion, drive, and momentum of the company. It should be realistic, but compelling.
People like to read stories…period. Tell them how you got to this point. What led you to start this company? Where did you come from? How did you get the idea for it? What drove you to do it? Explain your immense dedication to making your company succeed. Your story should be something that people want to read. If you read your story, would you want to continue reading the rest of the pitch?
Part of your pitch is identifying the problem that you intend to solve. What is the customer’s pain point? How will you address it? What are the shortcomings of any current solutions offered by your competitors?
This is your eureka moment. Explain why your solution is compelling, and how it solves the problem. Why will it be better than anything out there?
Once you have identified the problem and offered a solution, the next step is to explain your value proposition. Paint a clear picture of why potential investors should invest in your company, and why potential customers should do business with your company and not your competitors. Make the benefits of your products or services crystal clear.
Here are some examples of great value propositions right off their websites:
- Uber – “Uber is the smartest way to get around. One tap and a car comes directly to you. Your driver knows exactly where to go. And payment is completely cashless.”
- Apple iPhone – “Why there’s nothing quite like iPhone. Every iPhone we’ve made – and we mean every single one – was built on the same belief. That a phone should be more than a collection of features. That, above all, a phone should be absolutely simple, beautiful, and magical to use.
- Slack – “Be Less Busy.” In addition, Slack uses a famous customer to say that if they can use Slack, then so can you. Here is the positioning of it: “NASA’s Jet Propulsion Laboratory is one of tens of thousands of teams around the world using Slack to make their working lives simpler, more pleasant, and more productive.”
In this part of your pitch deck, you want to explain who your customers are. Identify your target market, and why they would buy from you. Help investors understand the overall potential of the market, and what slice of the pie you believe you can capture from that market, as well as how you are going to do it.
This should contain an explanation of the revenue model and how you intend to thrive. How does your company intend to make money? Is it different from your competitors? Is it scalable? Based on the market potential you have already explained, what is the structure and process of how you will generate revenue?
Explain who your direct and indirect competitors are, and how you are not only going to compete with them but how you are going to beat them.
Establishing a differentiating factor between your company and your competitors will stand out with investors.
People tend to invest their money in other people, as opposed to just relying on company information. Give investors a clear picture of the company’s management team and their goals for the company. Investors like putting their money in management teams that show immense dedication and passion for their ventures.
Use of Funds
Explain what the majority of the funds will be used for. Where will you focus, or concentrate your energy with the capital you raise from investors? This can be done as a percentage of the total raise by category, or in a single area of focus. Whatever the case may be, investors will want to know what you are going to do with their money.
This should include a timeline of what you have accomplished so far, as well as what you plan on accomplishing at certain key dates. Investors will want to you know what kind of traction you have already had, and what you are doing next. Having specific milestones in place for goals you want to reach, gives investors’ confidence that you will work hard to meet the deadlines of those milestones.
If all goes well, what will your business look like in five years? Outline where you will take the business. What does the company look like? What does the team look like? Get investors to see what you see as the future of the company.
Remember that equity crowdfunding is comprised of an investor audience that is quite broad in scope since it could be anyone who has an interest in your company. So, keep in mind that your pitch should be less formal than it would be if you were pitching to a venture capital or angel investor. You want to make sure your pitch is clear and to the point since you are catering to a greater number of people with varying backgrounds.
So, make your crowdfunding investor pitch deck “Pitch Perfect” …. or maybe as close to perfect as you can get.