Pitch deck

Pitch Deck

Purpose	To present a startup's business plan to potential investors
Common Components	Executive Summary, Problem, Solution, Market Size, Business Model, Competition, Team, Financials
Typical Format	Slide presentation (e.g., PowerPoint, Keynote, PDF)

A pitch deck is a brief presentation, typically created using software like Microsoft PowerPoint, Keynote, or Canva, used by startups to provide a concise overview of their business plan to potential investors, such as venture capitalists, angel investors, or other funding entities. The primary goal of a pitch deck is to communicate the startup's vision, value proposition, and growth potential in a clear and compelling manner to secure funding or partnerships. Designed to be easily understandable, pitch decks are particularly important for first-time founders, including those without a business background, as they simplify complex business ideas into digestible information.

Purpose

The purpose of a pitch deck is to persuade investors to fund a startup by showcasing its potential for success. It serves as a visual storytelling tool that outlines the problem the startup aims to solve, the proposed solution, and how the business will generate revenue and scale. For first-time founders, a pitch deck is often their first formal interaction with investors, making it a critical tool for conveying credibility and enthusiasm. Pitch decks are commonly used during accelerator programs, venture capital pitches, or seed funding rounds.

Key Components

A typical pitch deck includes the following components, each designed to address specific investor concerns in a straightforward manner:

• Executive Summary: A brief overview of the startup, including its mission and vision. This slide sets the tone for the presentation.
• Problem: A clear description of the market gap or customer pain point the startup addresses. This helps investors understand the "why" behind the business.
• Solution: An explanation of the startup's product or service and how it solves the identified problem. This section highlights the unique selling proposition (USP).
• Market Size: Data on the total addressable market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM), showing the potential for growth.
• Business Model: Details on how the startup will generate revenue, such as through sales, subscriptions, or advertising.
• Competition: An analysis of competitors and how the startup differentiates itself in the market.
• Team: Information about the founding team, their expertise, and their roles, demonstrating the capability to execute the business plan.
• Financials: Basic financial projections, including revenue, expenses, and funding needs, often presented as charts or graphs.
• Ask: A clear statement of the funding amount sought and how it will be used.
• Summary: A concise wrap-up reinforcing the startup's value and investment opportunity.

These components are often presented in 10–20 slides, keeping the content concise and visually engaging to maintain investor interest.

History

The term "pitch deck" emerged in the early 2000s during the dot-com boom, when startups began using slide presentations to pitch to venture capitalists. Early examples include the pitch decks of companies like Airbnb and Uber, which have since become widely studied templates for startups. The rise of startup accelerators like Y Combinator and online platforms like SlideShare further popularized the use of pitch decks, making them a standard tool in the startup ecosystem.

Best Practices

For first-time founders, creating an effective pitch deck involves several best practices:

• Keep it Simple: Use clear language and avoid jargon to ensure the deck is accessible to those unfamiliar with business terminology.
• Focus on Visuals: Incorporate charts, images, and minimal text to make the presentation engaging.
• Tell a Story: Structure the deck to guide investors through a narrative, from problem to solution to market opportunity.
• Tailor to the Audience: Customize the deck for specific investors, emphasizing aspects most relevant to their interests.
• Practice Delivery: Rehearse the pitch to ensure confidence and clarity during presentations.

Experts recommend limiting the deck to 10–15 slides to respect investors' time while covering all essential points. Online resources like Pitch Deck Hunt provide templates from successful startups, offering inspiration for new entrepreneurs.

Examples

Notable pitch decks include:

• Airbnb's 2008 pitch deck, which emphasized the sharing economy and market opportunity.
• Tesla's early pitch deck, focusing on sustainable transportation and scalability.
• Buffer's transparent pitch deck, which openly shared financials and growth metrics.

These examples are often cited for their clarity, structure, and ability to secure significant funding.

External Links

• Pitch Deck Hunt – A collection of pitch deck templates from successful startups.
• Y Combinator: A Guide to Seed Fundraising – Advice on creating pitch decks for seed funding.