Creating an Effective Pitch Presentation

Introduction to Pitch Presentations

• The speaker introduces the topic of creating effective pitch presentations, emphasizing the importance of specific slides.

• Acknowledges the abundance of resources available on slide presentations but aims to provide a concise overview of essential elements.

Speaker's Credentials

• The speaker shares their background as a venture capitalist in London, having invested in two unicorn companies: Farfetch and Vestier Collectif.

• Mentions running an investor accelerator in Oslo, Norway, where they teach aspiring investors about startup investments.

Key Slides for Pitch Decks

Slide 1: Opening Slide

• Highlights the significance of the opening slide, which typically remains visible longest during live pitches.

• Stresses that this slide should feature the company logo and a compelling one-liner to establish brand recognition immediately.

• Provides an example from their own experience with "Lunacorn," a mobile media brand, illustrating how branding connects with audience interest.

Slide 2: Selling the Problem

• Emphasizes that it's crucial to articulate the problem being addressed rather than jumping straight to solutions.

• Warns against assuming that all audience members understand complex issues; instead, focus on making problems relatable and understandable.

Audience Awareness

• Shares personal experiences where pitches failed due to lack of audience understanding; stresses knowing your audience is vital for effective communication.

Simplifying Complex Ideas

Rule of Thumb for Communication

• Advises presenters to simplify language as if explaining concepts to ten-year-olds, avoiding industry jargon and buzzwords.

Slide 3: Presenting Your Solution

• Discusses how presenting a solution should follow logically after identifying the problem; it’s important for persuasion.

• Suggestion that whether or not the solution seems obvious, it can engage and surprise audiences positively.

Visual Presentation Tips

Engaging Visual Support

Market Opportunity and Traction in Startups

Understanding Market Size

• The market opportunity slide is crucial for demonstrating the growth potential of your industry, convincing investors that your solution is viable.

• Highlighting "hot markets" like fintech or blockchain can attract investor interest; these sectors are characterized by significant growth rates.

• Introduce the term CAGR (Compound Annual Growth Rate), which indicates consistent annual growth over a specified period, showcasing market momentum.

• Presenting strong growth figures helps create a positive perception of the company and its industry among potential investors.

• Founders should be well-informed about their numbers to demonstrate diligence and understanding of their market landscape.

Researching Competitors

• A practical approach to finding CAGR and other metrics involves researching competitors' presentations from demo days or online resources.

• Leveraging existing research saves time and provides credible data for your own presentation.

Importance of Traction

• The traction slide illustrates momentum and execution proof within the startup, essential for gaining investor confidence.

• Revenue or customer growth serves as the gold standard for traction; however, early-stage startups may need to frame their traction differently if they lack these metrics.

• Demonstrating team formation (e.g., securing co-founders with necessary skills) can also serve as evidence of traction.

• Engaging with potential customers through surveys or research reports shows proactive efforts in understanding market needs, contributing to perceived traction.

Visualizing Progress

• A timeline can effectively showcase progress over time, illustrating how the startup has achieved milestones aligned with its long-term goals.

Business Model Clarity

• Clearly articulating how the business will generate revenue is critical; omitting this information often leads to investor inquiries during pitches.

• If presenting live, avoid overly complex financial models initially; instead, provide straightforward highlights that indicate a solid business case exists.

• Focus on realistic projections rather than detailed forecasts that may not reflect current operational realities.

How to Present Your Startup Effectively

Importance of the Team Slide

• The team slide is crucial in a pitch, showcasing that you have the right people to solve the problem at hand.

• Investors look for founders who acknowledge their weaknesses rather than pretending to know everything; this honesty builds credibility.

• Highlight efforts made to recruit candidates in areas where your team lacks expertise, demonstrating proactivity and awareness of known unknowns.

• Before investing, consider if the team has the necessary qualities—grit and perseverance—to attract talent and execute the business plan effectively.

• A strong team balance is essential; assess whether individual founders can draw in great people or if they complement each other well.

Crafting a Strong Ask

• Conclude your presentation with a clear ask, summarizing what you need from your audience—be it connections, expertise, or investment.

• Clearly articulate what you are missing and how the audience can help; avoid vague conclusions that leave them unsure of how to assist.

• Many startups neglect this aspect by simply thanking their audience without specifying their needs or next steps.

• Use branded clothing during pitches to create a visual connection between your company name and its representatives, enhancing memorability.