Securing funding is often the pavement to transform innovative ideas into businesses. Yet, the journey from inception to investment is far from uniform. Each stage of a startup's growth demands a tailored approach to pitching that aligns with the expectations and objectives of investors. From the early stages of seed funding to the peak of an initial public offering (IPO), entrepreneurs must use compelling pitches that resonate with different stakeholders.
Understanding the difference in pitching across various funding rounds is essential for founders. The most common funding rounds a startup will go through are Pre-seed, Seed, Series A, Series B, Series C, and in a few cases going beyond Series D, series E, and so on.
As it’s the name, the Pre-Seed occurs before the seed round and is considered the first step in raising investments for a startup. Pre-seed funding typically helps founders develop their business idea, validate their product or service concept, and prepare for subsequent rounds of financing.
Startups at the pre-seed stage are usually in the ideation or early development phase. The funding is used to build prototypes, conduct market research, and validate the feasibility of the business concept. Initial capital in this stage comes from the founders, friends, family, or angel investors. Pre-seed funding enables founders to refine their business model, identify their target market, and establish a go-to-market strategy based on initial customer feedback and market validation.
While these types of rounds are typically smaller in size compared to later funding rounds, they play a crucial role in establishing relationships with early investors who may continue to support the startup in subsequent rounds.
For your pitch deck at this stage, try to keep it as short as possible, ideally in 10 slides that give a high-level overview of the problem you’re targeting and your approach. Your pre-seed pitch deck may include slides like
Introduction and Elevator Pitch, Problem Statement, Solution, Market Opportunity, Traction, Business Model, Go-to-Market Strategy, Competitive Analysis, Tema, Financial Projections, Funding Ask and Use of Funds, and Closing.
Seed Funding
The seed round marks the first significant external investment in a startup. It is aimed at providing capital to fuel the initial growth and development of the business beyond the ideation and proof of concept stages.
With seed funding comes institutional investors such as angel investors, venture capital firms, or early-stage investment funds, and it also means that they acquire equity in the business. Startups at this stage have usually developed a minimum viable product (MVP) or prototype and demonstrated some level of market validation.
Seed funding enables startups to hire key team members, expand operations, and execute their go-to-market strategy.
The amount raised at this stage can vary from tens of thousands to a few million dollars, depending on the startups' needs and potential. Successful completion of the seed round positions the startup for subsequent funding rounds, by demonstrating traction, scalability, and investor confidence. Seed funding helps bridge the gap between the initial stages of development and the later stages of scaling and expansion.
Even if your pitch deck follows the same structure, it needs constant updates and re-dos for every funding stage. You may follow common elements or slides in structure, but as your business develops the data in the pitch deck changes, it becomes more complex. At this stage, it is important to show you either achieved or ar close to realizing Product-Market Fit and thus your deck needs to reflect that. You can have more developed Traction, Product & Go-to-Market slides than in a pre-seed deck.
A seed pitch deck may include slides like:
Introduction and Elevator Pitch, Problem Statement, Solution, Market Opportunity, Traction, Business Model, Go-to-Market Strategy, Competitive Analysis, Tema, Financial Projections, Funding Ask and Use of Funds, and Closing.
While both pre-seed and seed pitch decks share common elements, the differences lie in the stage of development, emphasis on traction and validation, and the level of detail regarding product development and financial projections.
Tailoring the pitch deck to the specific needs and expectations of investors at each stage can enhance its effectiveness in securing funding for the startup.
Series A
The next step in a startup development journey is a Series A funding round, led by more traditional investors, such as venture capital firms. This means your startup has progressed beyond the early stage of development (congratulations) and has achieved product validation and traction in the market, demonstrating potential for scalable growth.
Series A funding is often used to scale the startup's operations, including expanding the team, investing in marketing and sales efforts, enhancing product development, and building infrastructure to support growth.
Investors typically acquire a significant equity stake in the company in exchange for their investment. The company's valuation at this stage is based on its demonstrated traction, growth potential, and competitive positioning. That means you need to dive deeper into metrics such as user growth, revenue, and financial projections, requiring more substantial evidence of product-market fit and scalability. Apart from this, at this stage you also need to show you understand the landscape you are competing in - a rigorous competitive landscape slide that highlights your unique differentiators is a must.
Investors can bring more than capital in this stage, they can strategic guidance, industry expertise, and valuable networks that can help the startup navigate challenges, seize opportunities, and accelerate growth.
Your pitch deck at this stage should include:
Cover and overview, Status Quo / Market Context / Opportunity, Problem Statement, Solution & Vision, Why Now, Product features & Tech, Traction, Market Size, Business Model, Go-to-market strategy, Roadmap & Milestones, Team Slide, The ask & use of funds, Financials.
Unlike earlier stages, Series A investors play a strategic role and require a clear growth plan, rigorous financial projections, and a thorough competitive analysis to assess a startup's potential.
Series B
Welcome to the Series B funding round. This means your startup has achieved significant market validation and traction and proved to investors that it can grow even further. Series B funding is often used to scale the startup's operations and accelerate growth initiatives. This may include expanding the team, investing in sales and marketing efforts, enhancing product development, and building infrastructure to support increased demand.
With similarities between Series A and Series B, such as the key players, the process and structure of the pitch deck, the differences will lie in proven data, market opportunities, achieving profitability, and expectations of investors.
Here are key components to include in your Series B pitch deck:
Introduction and Recap
achievements since the series A round
Market Opportunity
updated analysis of the target market
Product and Traction
progress of your product or service offering
Business Model
ability to drive long-term profitability and growth
Go-to-market strategy
the plan to scale your customer acquisition effort
Competitive Analysis
reaffirm your startup's unique differentiation
Financial Performance
insights into your startup's financial health and trajectory
Strategic Vision and roadmap
startup's growth trajectory and value creation potential
Team
its ability to execute the business plan effectively
Use of funds
how you plan to utilize the Series B funding
Closing and contact information
conclude your pitch deck with a strong call to action
Successful completion of a Series B round sets the stage for potential future liquidity events, such as a strategic acquisition or an initial public offering (IPO). Series B investors aim to maximize their return on investment by supporting the company's growth and value creation trajectory.
Series C
Next on a startup's funding journey is the Series C round, considered a late-stage investment round. The startup is more mature and has already established a strong foundation for growth, and to continue the expansions it requires new funding.
Institutional investors such as venture capital firms, private equity funds, and hedge funds typically participate in Series C rounds, they aim to maximize their return on investment by supporting the company’s growth trajectory.
The pitch deck for series C follows the same pattern as the one for series B, with updates reflecting the evolution from the last round of funding. In a Series C deck, the emphasis shifts towards demonstrating sustained growth, revenue generation, and market expansion.
Series C funding rounds mark a significant milestone in the growth journey of a startup, providing the capital and resources necessary to accelerate expansion, strengthen competitive positioning, and pursue strategic opportunities as the company matures toward its ultimate goals of liquidity or sustained profitability.
Series D, E and more
Subsequent rounds follow a similar pattern, with each round typically involving larger investments and valuations as the company grows. These rounds are often used for international expansion, acquisitions, product diversification, or preparing for an initial public offering (IPO).
Startups continue to scale their operations, infrastructure, and workforce to support sustained growth. This may involve further investments in sales and marketing, product development, customer support, and operational efficiency to capitalize on market opportunities and meet increasing demand.
All this information is just a surface scratch of what it means to participate in a funding round. Mastering the art of pitch deck preparation requires careful planning, thorough research, and a deep understanding of investor preferences and market dynamics. As your time is best invested in the startup growth you can collaborate with professionals to help you prepare.
You have one shot to impress investors with your pitch deck, seize this opportunity. Tell your startup’s story, have relevant information for your audience, and show the plans you have with the right pitch deck.
Working with us gets you the expertise of preparing more than 100 pitch decks that raised $1,3 Bn in funds.