In 2023, the landscape for startups seeking funding has evolved significantly. With global VC funding for startups having decreased significantly in the previous year, it’s more crucial than ever for companies to present a compelling pitch deck. Here’s a breakdown of the essential components of a pitch deck, along with hypothetical examples for each:
1. Current problem
Every successful startup begins by addressing a tangible problem. For established startups, it’s essential to reiterate this problem, emphasizing its continued relevance and any evolving dynamics.
2. Market Size
Demonstrating the potential scale of the solution is crucial. It provides a perspective on the startup’s growth potential and the broader impact it can achieve.
The company should detail its unique solution to the problem, emphasizing its effectiveness, scalability, and differentiation from competitors.
4. Product/Service Features
Highlighting key features showcases the startup’s value proposition and how it stands out in the market.
Traction refers to the measurable progress of a startup, often shown through customer engagement and growth. It serves as proof that the startup’s product or service is gaining popularity and acceptance in the market.
6. Competitive Landscape
The “Competitive Landscape” slide provides a holistic view of the market environment in which a company operates. It showcases the major players in the industry, highlighting their strengths, weaknesses, market share, and unique value propositions. This slide is crucial for understanding the current market dynamics, identifying potential threats, and uncovering opportunities for differentiation and growth.
6. Unit Economics or Key Metrics
Unit Economics refers to the fundamental financial metrics that evaluate the profitability of an individual unit or customer in a business model. It breaks down the company’s revenues and costs on a per-unit basis, allowing businesses, especially startups, to understand how much they earn and spend for each unit or customer they acquire.
7. GTM (Go-to-Market Strategy)
A Go-to-Market (GTM) strategy is an action plan that outlines how a company will present its product or service to its target audience. It focuses on positioning, launching the product, and achieving a competitive advantage.
The team’s expertise, experience and team size can be a significant factor in gaining investor confidence.
This provides a perspective on the startup’s journey so far and its future plans.
10. Ask & Utilization
If the startup is seeking further resources, be it funding or partnerships, this section outlines the ask and its intended utilization.
This offers a forward-looking perspective on growth, revenue, and other key metrics.
12. End Slide
A concluding slide that encapsulates the startup’s vision, mission, and opportunity for stakeholders.
Read more about Ethos Ltd: The Luxury watch retailer with a bright future.
Author: Kevin Jose