If you want to raise money for your startup, your pitch deck needs to answer these 10 important questions. This is something that will help you to hit it out of the part when you are wondering how to value a startup also.
Many new entrepreneurs see their pitch deck as the opportunity to show off their business idea, and how smart, innovative, and fantastic they and their technology is. What a pitch deck is really about is answering the key questions that investors have. So that they can quickly make a decision to fund you.
Investors are bombarded with more pitches than they could ever fund. They don’t have time to go to extra lengths to extract this basic data from you. So, if you want to get funding for your startup, make sure your deck answers these key questions.
1. What Is The Problem You Are Solving?
The problem your startup is setting out to solve is the very basis for your business. It is the foundation of everything else.
If you don’t have a good problem, not much else is going to matter. While if you have a strong problem, investors will often stick with you as you continue to iterate to find the right product, marketing, and team to solve it.
State your problem simply and clearly. Be ready to explain how you’ve verified and quantified the problem after your pitch.
2. How Big Is The Market?
One of the top questions investors have is how big your market is.
This is vital for determining whether your startup can ever reach the size that is needed to deliver the level of returns that they need to justify this investment.
You may need to zoom out even further to demonstrate the full potential. Or reference credible data on how large this market is expected to grow over the next few years.
Of course, experienced investors also know that it is going to take great focus to get traction, score early wins, and to make the most of the capital you are given. So, also show the size of the niche group that you will begin selling to first.
3. Who Are Your Target Customers?
Investors want to know who your target customers are. There are multiple reasons for this.
Firstly, it tells them that you have really done the work, and know your market. It shows if your business idea really makes sense.
This information also allows investors to gauge the fit for them and their portfolios. If they have experience, contacts, or complimentary verticals, they can add a lot of value to your company beyond their capital. They may be able to easily plug it in and make it a far larger success in a very short period of time.
4. Do You Have A Finished Product?
There are certainly investors who may invest just based upon the idea, or a prototype. What’s most important is that you are clear about the stage of business that you are at.
The further along you are, the lower the risk for potential investors.
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