The Power of a Pitch: Why Your Investor Presentation Matters
An investor presentation is an important document, there is no argument there. An investment presentation could sometimes lead to you getting an investment, launching your startup, and growing it, or it could sometimes lead to you not having enough money to launch your company and hence calling it quits.
So an investment presentation in some cases, and I say in some because in a lot of cases, bootstrapping is an option, could make or break a startup. VCs, accelerators, angel investors, and all those parties who look at investor presentations get thousands of presentations per month. You need to know which structure to work on, how it should look, what is right to say, and what is wrong. You need to know how to pitch it properly. It shouldn’t be called an investor presentation; it should be called an investor sales presentation because the truth is you’re selling yourself to an investor. It really has to have the characteristics that are good enough to get into the reader’s mind, stay there for a while, and showcase that this is a good opportunity.
VC Titans: How Y Combinator Structures Their Investor Presentations
Y Combinator, the world’s biggest accelerator with over $600 billion of funded startups valuation, has invested in companies like Airbnb. They recommend you work with this investment pitch structure:
- Elevator Pitch: Showcase a little bit about your company.
- Problem: Show what problem you’re trying to solve.
- Solution: Showcase your product but not in too much detail.
- Traction: What have you done so far? This is specific to companies probably post-seed or post-traction. If you’re just in ideation, fill the slides with small testing or something to showcase you have something going on.
- Revenue Projections: Show how much money you’re trying to raise. This is to grasp whether you have seen the full potential of the product.
- Why You?: Showcase why you’re different from competitors and how you’re trying to operate.
- Business Model: How you intend to make money.
- Market: Statistics about the market in terms of total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM), or just how the market is growing.
- Team: The most important slide. Showcase your team briefly. If they have worked in well-known companies, mention it with logos.
- Investment Ask: How much money you’re asking for and what you will spend it on.
500 Global’s Formula: Investor Presentations for Growth-Stage Startups
500 Global, with a funded startup valuation of around $40 billion, has invested in companies like Canva. They have a structure similar to Y Combinator but with a few differences:
- Elevator Pitch
- Problem
- Solution
- How It Works: Show the product, especially if it’s complex.
- Traction
- Business Model
- Competition: Highlight the competition and how you can overcome them.
- Market
- Progress to Date: Show what you have done so far.
- Team
Sequoia Capital’s Secrets: Investor Presentations That Win Deals
Sequoia Capital, with $85 billion of assets under management, has invested in companies like Apple. They recommend this structure:
- Elevator Pitch
- Problem and Solution
- Why You?
- Market
- Competition
- Business Model
- Team
- Revenue Projections
- Vision: A signature slide for Sequoia, showcasing your vision for the future.
Kleiner Perkins’ Playbook: Investor Presentations for Disruptive Tech
Kleiner Perkins, with over $9 billion of assets under management, invested in Amazon at an early stage. They recommend a concise structure:
- Solution: Start immediately with your solution.
- Strategy: How you’re intending to grow (GTM strategy).
- Team, Revenue, and Traction: Combine these into one slide.
- Progress to Date: Show your execution skills.
a16z’s Winning Hand: Investor Presentations for Consumer-Focused Startups
Andreessen Horowitz, with $42 billion of assets under management, invested in companies like Meta. They recommend:
- Elevator Pitch
- Vision
- Competition
- Traction
- Team
- Investment Ask
From Seed to Series A: How Investor Presentation Structures Evolve
Each investor presentation is different based on the fundraising round. For seed investments, focus on market opportunity, team skills, and convincing with the product. For Series A, it’s more about team execution skills and strategy. In Series A or public companies, pitch decks are more detailed with extensive information about the plan and operations.
The Perfect Pitch: My Ultimate Investor Presentation Structure
If you’re not applying to a specific firm and just sending it to an angel investor, I recommend using a modified version of Kleiner Perkins’ structure:
- Solution: Explain the problem while presenting the solution.
- Competition: Show other companies in the market and how you’re different.
- Strategy: Explain your operations strategy.
- Traction, Revenue, and Team: Combine these into one slide.
- Progress to Date: Show what you have done so far.
Beyond the Slide Deck: The Art of Delivering a Winning Investor Presentation
Presentation skills, body language, and storytelling are crucial in delivering a compelling pitch. Engage investors and make a lasting impression. Consider the context—whether it’s a live pitch or an email presentation—and adjust the length and detail accordingly.
By understanding these structures and tailoring your presentation to fit the preferences of top VC firms, you can significantly increase your chances of securing the funding you need.
Here’s a simple free investor presentation template that I recommend you check out.