Raising capital is one of the most crucial steps for startups looking to scale and grow. A well-crafted pitch deck can make or break an entrepreneur’s chances of securing investment.
But there is no “perfect” pitch deck, as you continue refining and optimizing it after every investor encounter. As your startup grows you will need to adapt the pitch deck accordingly.
Find the differences between pitching series here: A, B, C of Funding Rounds
Understanding the key elements that capture an investor's interest can significantly increase the chances of success. From a compelling value proposition and a solid business model to a clear understanding of the market and a strong team.
A tested and proven structure for your pitch decks includes these slides:
1. Cover & Overview | 2. The Opportunity | 3. Problem Statement | 4. The solution | 5. Traction | 6. Market Size & Customer | 7. Business Model | 8. Go-to-market strategy | 9. Team Slide | 10. Ask & Use of Funds
What Key Elements Do Investors Look at in a Pitch Deck?
When crafting a pitch deck, it's essential to understand that investors are not just evaluating your idea—they’re evaluating your business’s potential to generate a return on their investment. Ultimately, there are some key questions your pitch must always address:
- What is the problem?
Investors want to see that you’ve identified a real, painful problem in the market. More importantly, they want to understand whether this problem affects a significant portion of the market, and if it has enough urgency that customers would seek a solution. - Is it big enough and worth solving?
This question speaks to market size and opportunity. It’s crucial to show investors that solving this problem has the potential for massive growth. A clear analysis of the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM) helps convey that this is a large, worthwhile opportunity. - What’s the solution and how does it add value?
Your solution should not only address the problem but also offer a unique value proposition that sets you apart from competitors. Investors want to know if your solution is innovative, scalable, and difficult for others to replicate. - Who are your customers and how are you going to reach them?
Customer acquisition and distribution strategies are pivotal. Investors need confidence in your ability to acquire customers in a cost-effective way. It’s not just about having a product; it's about knowing how to get it into the hands of your target audience. - Are you able to do it? What makes your team stand out?
Even a great idea is meaningless without a capable team to execute it. Investors evaluate your team's experience, domain expertise, and track record. What unique advantages does your team bring to the table that increase the likelihood of success? - What do you need to succeed?
Investors want to know how much capital you're raising, why you need it, and how it will be used. This section should include a clear roadmap of how the funds will help you reach key milestones that drive growth or profitability.
What Is the Investors' Analysis Process for a Pitch Deck?
The investor’s decision-making process often starts with a quick filtering of the pitch deck. Here’s a breakdown:
- Initial filtering—does it fit their investment criteria?
Before diving into details, investors will check whether your startup aligns with their investment thesis. This includes factors such as your industry, business stage, type of round, and market focus. If these don’t align, your pitch will likely be passed on quickly, regardless of how strong the opportunity may seem. - Product and market analysis—do customers love it?
Once the startup passes the initial filter, investors shift focus to the product-market fit. They’ll analyze if there’s clear demand and whether customers find real value in what you're offering. A compelling product, validated by customer feedback, is a strong signal that there’s market traction or potential for it. - Big picture analysis—does it align with their goals?
Ultimately, investors are looking for startups that can deliver the kind of return they need, whether it’s 10x or more. They’ll assess whether your startup has the potential to scale and become the type of company that can return a significant portion of their fund. Key metrics like revenue potential, growth rate, and market dominance come into play here.
What Was the Most Appreciated Detail in a Pitch Deck by Investors?
In our experience at Visual Hackers, one of the most appreciated aspects of a pitch deck is anticipating questions. This doesn’t mean overloading your main deck with too much information, but rather being thoroughly prepared.
The ideal strategy is to have a core pitch deck for the main presentation, with a comprehensive appendix section that dives deeper into specific details. If an investor asks about something like your financial model, competition, or customer acquisition strategy, you can seamlessly pull up an appendix slide that provides clarity. This level of preparation shows investors that you have thought through your business from all angles and can answer critical questions with confidence.
What Mistakes Can You Make in a Pitch Deck?
Pitch decks often suffer from common pitfalls. Here are some top mistakes we’ve seen:
- Pitching the product, not the business
Founders often fall into the trap of describing the product in great detail, focusing on features and benefits as if they were speaking to a potential customer. Investors, however, care more about the business behind the product—how it fits into the market, who the competition is, and whether there’s a solid business model driving it. - Lack of evidence and data
Bold claims like “we’ll capture 10% of the market” or “we have no direct competitors” need to be substantiated. Investors want to see research-backed numbers, credible projections, and third-party validation whenever possible. Unsupported statements or ungrounded projections will erode trust quickly. - Unrealistic assumptions
Assumptions underlie every startup’s projections, but they need to be reasonable and well-researched. Investors are quick to notice when assumptions about market size, customer acquisition, or financial growth are overly optimistic. It’s crucial to ground your forecasts in realistic, data-driven assumptions.
Additional Insights and Information to Add:
- The Storytelling Aspect: Great pitch decks are built around a compelling narrative. While data and metrics are vital, it’s equally important to tell a cohesive story that explains why your startup exists, why now is the perfect time, and how you’re uniquely positioned to seize the opportunity.
- Competitor Analysis: Investors want to understand who your competition is and what differentiates your startup. A good competitor analysis slide doesn’t just list competitors—it visually shows how you outperform them in key areas.
- Customer Validation: If possible, include early customer feedback, testimonials, or traction metrics. Real-world validation adds significant weight to your pitch.
- Clear Milestones and KPIs: It’s critical to demonstrate how you’ll measure success and what milestones you aim to hit post-investment. Clearly outline short-term and long-term goals, along with key performance indicators (KPIs) that will signal your progress.
Ultimately, the pitch deck must answer these questions for an investor:
- What is the problem?
- Is it big enough or worth solving?
- What’s the solution?
- How does it add value to customers?
- Who are your customers?
- How are you going to reach them?
- Is this team the right team to do it?
- What do you need to get it done?
Creating a pitch deck that captures investor interest isn't just about presenting numbers and facts, it's about telling a compelling story that aligns with investor goals and showcases the potential for growth. By focusing on clear messaging, a solid business model, market opportunity, and a capable team, entrepreneurs can create a pitch deck that stands out in a competitive landscape.