What are the top five elements for a successful VC pitch deck? (2024)

Key takeaways from this article

• Compelling storytelling:

  Engage investors by sharing your startup's journey with a narrative that connects. It's about making them feel the passion behind your vision, leading them to believe in your idea as much as you do.

• Clear value proposition:

  Spell out why your solution is a game-changer in simple terms. A well-defined value proposition can convince investors that you're not just another idea, but the one that will transform the market.

This summary is powered by AI and these experts

• Kaijie Ng Director (Special Projects), CEO's…
• Anuraag Guptaa Board Member | Mentor-Investor |…

• • Report contribution
  Compelling Storytelling: Paint a vivid picture of your journey, capturing hearts and minds.Clear Value Proposition: Define your unique value – make it crystal clear why you're the game-changer.Market Understanding: Showcase an in-depth grasp of your market landscape, proving you're the disruptor.Financial Precision: Numbers speak volumes. Break down financials with clarity and confidence.Team Brilliance: Spotlight your dream team. Investors invest in people, so shine a light on your stellar lineup.Craft a pitch that resonates the personality and thinking of the Founders and the Founders Group.

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• Ben Yoskovitz Founding Partner at Highline Beta | Author of FocusedChaos.co

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  Before you articulate the problem, you should articulate the mission/vision. That's the most impactful "highest level" part of the story that you can tell, and it should capture my "emotional" attention (i.e. target the "heart" first) and then get into the weeds.The Problem can also and should also be an emotional hook. That doesn't mean you're saving the world, but you have to make the problem relevant to the audience so they CARE about it.Then go into the Solution, which is the transition from "Hearts" to "Minds" (i.e. "OK, I'm emotionally invested now, tell me how we fix this!")

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• Saurabh Pareek Private Equity| Impact Investor| Ex-Bain, Parthenon

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  I find crisp/ to the point decks very helpful and easy to absorb: 1) Clear problem startup is trying to solve and what is the solution2) How large is the market and how fast it is growing?3) Where is the company sitting in value chain and what is path to margin expansion/ profitability?4) How relevant/ strong founding team is? Execution capability etc5) What is exit path for seed/ series A investors?

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• Nils Lange 🦾 Manager | VC @ Antler

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  1. Keep it simple2. Keep it even simpler (can't say this enough)3. Don't just say that the market is big, be specific in how you grab your share of it4. Demonstrate that you are solving a large problem to warrant a VC investment round5. Too little text is better than too much text, it should only complement what you say (which is the most important part)

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• Mike Lightman A new methodology on building decks and telling stories

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  “Fundraising decks should always begin with the problem you're trying to solve”. No, not quite. The best fundraising decks begin with setting the scene -- a short slide that gives an overview of the industry. It is only then that you introduce the problem. You can think of it as the foundation for building tension: If all is well in the industry, what's wrong with it? There's a big problem you may not know about… Sometimes I start the industry slide with a DID YOU KNOW heading. It's all about setting the right context for investors to understand the rest of your deck, the way you intended.

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• (edited)

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  Startup looking for funding often present overly optimistic market size estimates to attract investors. While this is understandable, the typical TAM, SAM, and SOM slides lack clear rationales or justifications. References are sometimes provided, but they often lead to unverifiable sources or require additional effort to understand the methodology used. A more effective approach would be for founders to transparently show how they calculate the market size. This should include their rationale, target segmentation, and targeted market share (especially for SOM). The goal is to enable investors to independently assess the market using their own inputs, thereby forming a more grounded opinion about the business's true potential.

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• David Kalow

  • Report contribution
  Your DISV = “Different, Interesting, Special, Valuable, Disruptive, Innovative, Memorable, Edge” = unique selling proposition, sustainable competitive advantage. Usually intangibles not land/location or equipment/factories. And you can make yourself a more likely winner against threats of copying, and being accused of copying others, by building and displaying a strong, well thought out IP Strategy.

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• • Report contribution
  Apple rigorously demonstrates its market understanding and potential capture strategy through detailed segmentation and targeting, focusing on premium customers valuing design, innovation, and an integrated ecosystem. Their competitive advantage lies not just in product innovation, but in creating a strong brand identity and a loyal customer base that values the quality and exclusivity of Apple products. This approach, supported by a superior business model that integrates hardware, software, and services, has enabled Apple to maintain a significant position in a saturated market.

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• Vadim Shpak Managing Director @ Vickers Venture Partners | MBA, Venture Capital

  (edited)

  • Report contribution
  In your pitch deck, it's crucial to focus on a substantial, existing problem that your product will solve. Avoid being a solution in search of a problem; instead, demonstrate a clear market need. VCs are more interested in solutions addressing significant pain points than solutions looking for problems. This approach increases the likelihood of investor interest and success.

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• Wee Leong Tan Strategic Partnerships | Fintech | Banking

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  while on the first point of proving viability if unique or a better solution than a current one in the market, you will already have figured out the market size and the competition in it. if you have no competition currently, then make sure your solution is viable and can sustain the market. Sometimes not having competition does not mean that it is good; make sure to do enough research on the history and the barrier to entry.

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• Kaijie Ng Director (Special Projects), CEO's Office | Helping Companies Build Responsible AI Systems | Ex-Carousell Corp Strat Director

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  Traction is really key given the interest in profitability and sustainable revenue streams. For B2B or SaaS, it would be number of projects or contracts, be it just POC, and logos won and retained. Testimonials help too. These are positive indications of market demand.

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• Lisa Marie Calhoun Founding Managing Partner, Valor VC. I lead seed rounds in AI driven B2B SaaS software companies based in the South.

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  Traction is a time series, and there are two important parts. One is, which types of customers are creating the signal? VCs want to see repeatability in one primary and prevalent customer type. The other is, how long does it take? If it took 3 years to get your first customer but 3 months to get your last, and for a larger check, your flywheel is in motion. Sharing the who, when, and how many in a simple way (chart/logos/past reality and future projection) helps a potential investor get into the momentum mood with you--or turns them away because there isn't momentum yet. (If there isn't, by the way, it's probably not a great time to raise.)

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• Alexander Nevedovsky Running Socap.ai (YC W23, founded by a team that raised over $180M). Repeat AI entrepreneur, ex WANNA (acquired by Farfetch) and Palta (300M users) 👨💻

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  - The most important slide — if there is traction, but the deck is sh*t, the project is still interesting- 4 types of traction: - User growth (signups, DAU/WAU/MAU/installs) - User engagement (time spent, retention, churn) - Revenue (MRR/ARR, booked revenue) - Pre-product traction: LOIs, wait-list

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• Eugenia Dunaeva Founder and MD @ Ultralite Consulting | Early stage investor and advisor | ex-Meta, ex-Expedia Group

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  Effective communication with investors relies on highlighting key metrics like MRR, ARR, churn rate, and sale cycle, demonstrating a proactive, data-driven approach. Firstly, it demonstrates that the startup is actively monitoring its performance and has established KPIs that they closely track.Secondly, it facilitates effective communication between the startup and investors. It shows that they share a common language and can effectively collaborate. In essence, it highlights the startup's readiness to work closely with investors as a united team. Therefore, it's essential to include these metric names that genuinely interest investors.

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• • Report contribution
  By 2022, SpaceX had achieved significant milestones, including multiple successful launches, contracts with NASA, and a growing number of Starlink internet service subscribers, showcasing remarkable progress and achievements. Their revenue, which crossed billions, along with their expanding user base, reflects substantial market traction.Historically, pitch decks focused more on visionary ideas. Today, there's a stronger emphasis on concrete evidence of success and market validation, reflecting a more data-driven investment landscape.

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• • Report contribution
  SpaceX’s vision to enable Mars colonization aligns with their mission of advancing space technology. SpaceX's diverse and talented team contributes to its unique position in the aerospace industry. Their clear vision of space exploration and a strong, innovation-driven culture set SpaceX apart in the sector.Highlighting the correlation between team diversity and increased innovation is crucial.

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• Alexander Nevedovsky Running Socap.ai (YC W23, founded by a team that raised over $180M). Repeat AI entrepreneur, ex WANNA (acquired by Farfetch) and Palta (300M users) 👨💻

  (edited)

  • Report contribution
  List only co-founders and/or key employees (if there are stars). Make sure to add links (LinkedIn/etc) and mention why are you the best founder for this startup. What’s your story that led you to start this startup? Make sure to list social proof visuals: - Consider merging this with an informal intro. E.g. — ask the investor to introduce himself and ask 1-2 follow-up questions if need be, and then, when it’s your part, share the screen and start with the informal intro on yourself and the team, and then move to the pitch. This seems natural enough and sets the stage - Mention the roles - You can sometimes non-intrusively add some of the existing investors/advisers as the additional social proof mention of who supports you

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• Vadim Shpak Managing Director @ Vickers Venture Partners | MBA, Venture Capital

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  In a pitch deck, investors often bet on one or two key individuals who drive the vision. While the entire team is crucial, spotlighting these leaders and their exceptional qualities can be a compelling factor for VC interest.

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• Kaijie Ng Director (Special Projects), CEO's Office | Helping Companies Build Responsible AI Systems | Ex-Carousell Corp Strat Director

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  Winning team is usually diversity of skills (cofounders need to complement each other), but also level of experience. Have they worked in a startup before, scale before in a corporate, understand corporate philosophy, or successfully exited? That means their learning cycle will be accelerated, and they can make mistakes faster, and learn quicker.

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• Wee Leong Tan Strategic Partnerships | Fintech | Banking

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  The founding team, especially the first 3 persons is very important, as they share the vision, and the mission to build the business up. Everyone must be aligned as time is of the essence. everyone is probably multi hatting, building, selling, operating so the founders must be able to keep morale and motivation high to ensure the high input leads to the desired output.

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• • Report contribution
  In 2023, Rivian Automotive specified it was raising $2.5 billion at a valuation of $28 billion, offering clear terms to investors.They detailed using these funds for scaling up production, enhancing product development, and expanding their market reach.Rivian's plan reflected realism in scaling operations and strategic alignment with the growing demand for electric vehicles.Discussing how market trends, such as the surge in demand for sustainable transportation, influence company valuation is crucial.

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• 🌱 Stefan Zurflüh COO | SPRINT Program | Equity Crowdfunding | Venture Capital | Angel Investing | Startups

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  Investors want to see your strategy for capital allocation.Many founders make the mistake of being too vague in their pitch deck and investment memorandum when outlining how the funds will be used to scale the business. It is not just about the amount of money you are seeking, but also having a detailed capital allocation plan that demonstrates a strategic mindset and a clear vision for the company's future. This not only increases investor confidence but also provides a solid foundation for discussion.

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• Kaijie Ng Director (Special Projects), CEO's Office | Helping Companies Build Responsible AI Systems | Ex-Carousell Corp Strat Director

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  This forces you to think really carefully before take ng investor money. Valuations are nice and all, but this comes with the added pressure of growing at x times the speed, which may not be a good overhang at this point. Sometimes it is better to continue bootstrapping, than being herded by investors who ask you to "grow more".

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• • Report contribution
  Again it is all about numbers.Your valuation should be attractive, not offensive. If you cannot persuade people about why your business is worth that much, this will immediately turn people off.

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• • Report contribution
  This is a founder’s opportunity to show their plan. I find them many folks simply say “this funding gives us 18 months of runway”.What makes more sense actually, by putting yourself in the shoes of the investor is “what significant milestone can you achieve with this money”.E.g raising $x helps us to prove that this segment is sticky and the metrics we are aiming for is y NRR over 12 months. In my case, raising $x to obtain an explosive-proof cert, which opens a new client segment for us. We have done the homework of nailing 2 contracts and have 10 in the pipeline line, and these are worth $y.

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• Hem Suri VC 2.1 | Founder 2.1 | #25 Founder’s Choice 2023

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  Our recommended pitch deck has 10-14 slides for telling the complete story:- Problem: There’s a real problem- Market Size: The problem is large- Solution: You have a solution- Competition/Edge: Your solution stands out & has long-term defensibility- Business Model: You can make a viable business out of it (pricing, unit economics, scalability)- GTM: You have segmented the market & can penetrate it thru proper sales and marketing tool-kit- Traction/Future Milestones: Not only you have a plan, you have made real progress & have material upcoming milestones- Financial Projections: 5 yr projections- Team: You’ve a solid team to execute all of the above- Raise: $s needed to deliver above plan, deliverables promised & uses of funds

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• ethan austin Fintech Investor | Pretty Decent Human | Not on Forbes 30 Under 30

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  Include a slide in the deck about your secret sauce. VCs don’t care about your idea. They want to know what it is you know that no one else knows that is going to make your idea successful. Almost all decks fail to include a slide like this. Whenever I see one with it, it immediately stands out.

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• Mudassir Mustafa Helping Deeptech startups tell their Stories to the masses.

  • Report contribution
  Don't forget compelling visuals that tell your startup's story in a glance. Pictures and charts should complement your narrative, not just fill space.

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• Alexander Nevedovsky Running Socap.ai (YC W23, founded by a team that raised over $180M). Repeat AI entrepreneur, ex WANNA (acquired by Farfetch) and Palta (300M users) 👨💻

  (edited)

  • Report contribution
  Start with the titles: - Use titles in a smart way — if you can say something instead of generic words, why not say it? - Would you be able to understand the narrative based on nothing but the titles? Aim for that - One main point per slide — as reflected in the title - Don’t hesitate to use references or comparisons — anything that helps people to relate and/or understand the idea better - There’s only one thing investors should take away from hearing/reading the slide — make sure you’re helping them by putting this in the title

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• • Report contribution
  I find that in a successful VC pitch deck, balancing detail with brevity is crucial. Start by clearly defining the problem and your unique solution, ensuring it resonates and is easily understood. Next, demonstrate your market understanding and unique positioning against competitors. Showcase traction and validation effectively; real-world data and customer feedback speak volumes. Introduce your team and vision, highlighting collective skills and driving forces behind your venture. Lastly, be transparent about funding needs and usage. Remember, every element of the pitch should build a coherent narrative that captivates and convinces.

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