Why creating a pitch deck is important

Most startups create investor pitch decks when fundraising. However, your pitch deck is also essential for communicating your vision, business model and growth potential. 

“In many ways, your pitch deck has replaced the old days of a lengthy business plan—but a shorter deck requires just as much research and analysis to tell your story,” Randall said.

Key pitch deck components

“Telling a story in your pitch from start to finish is really important, as is a clear, concise communication of your company and product,” Randall said. “Your pitch has to be memorable, well-practiced and repeatable to other people.”

“There's some room for creativity,” she said. “But to a certain extent, your pitch should communicate what the investor is expecting to hear, which is why they should invest in your company.” 

Your pitch deck should:

• Define the problem: Clearly and concisely define the pain point for your target market or customer. Incorporate data, such as statistics or market research. Urgency is also important—why does the problem need solving now? In more complex industries, such as healthcare and pharmaceuticals, investors may need more background information to fully grasp the problem.
• Introduce your product: Your pitch deck should provide a detailed, but succinct, description of your product or service and its core features, including its unique value proposition and what differentiates the solution from your competitors. 
• Present the market opportunity: Investors want to know the problem your product solves. More importantly, they want to know why your solution is worth their investment. Be sure to cover the market size and scope, addressable and serviceable markets, and industry-specific metrics and trends.
• Explain why you are the best team to solve the problem: “You want to instill confidence in investors that your team is the right team to do this,” Randall said. The founder and team’s background, expertise or strong connection to the problem can help you gain a competitive advantage. If your founding team doesn’t have industry expertise, be sure to include the list of notable advisors you are working with to address that gap. 
• Show your product’s traction: For early-stage companies, data on product demand can go a long way. “You can say ‘I talked to 100 potential clients and 90 of them said they’d pay me for this,’” Randall said. As you gain paying customers, you can delve into industry-specific metrics. “For example, if you’re in the direct-to-consumer space, investors want to know the lifetime value of your customer in relation to the customer acquisition cost,” she said. “With B2B software, it’s monthly recurring revenue or annual recurring revenue.” Every industry uses a different metric, be sure to include the one relevant to your industry.
• Acknowledge and know your competition: Your pitch deck should include information on any competitors in the space. Often, you’ll see a matrix of features comparing your product and competitors. A pitch deck can show what sets your product or service apart from competitors. “But be careful of saying you’re in a blue ocean,” Randall said.
• Detail how you plan to make money: Investors want to know how your product will generate revenue. What to include for finances depends on the stage of your company, but be sure your deck includes revenue models, as well as how you plan to get your product to market. For later stage companies, this is often shown in predicted sales growth. 
• Provide information on business milestones and timeline: While details can vary based on the funding stage, investors want to know about your startup’s major achievements and growth trajectory. Your deck should also include future development plans.
• Make the ask: Don’t forget the most important part of your pitch—your ask. You’ll want to show the investor that this is a good opportunity for them, while also sharing pertinent details about your round or terms. 

Dos and don’ts for creating a winning pitch deck

• Do your research: Look to online resources for guidance. Investors expect to see certain information in any pitch, so follow those guidelines. “For example, if you read nine blog posts and they all say have these five slides, you better have those five slides. Some people will say 10 slides, some will say 12. Research what is normal and decide for yourself which you prefer—but remember not to re-create the wheel,” Randall said.
• Don’t overcomplicate slides: Slides should be clear, compelling and succinct. Avoid fluff and focus on your startup’s story and key information. “Sometimes—especially with early-stage startups—people can get so wrapped up in the big picture that they forget to include details of the product that will solve the problem,” she said.
• Don’t make unsupported claims: You should be confident in the statements you make in your pitch deck. For example, some founders may say no one has solved this problem before. And there may be a reason for that. “Worst-case scenario, the investor you're talking to has already seen four pitches that week that solve the same problem, and you just don't know them,” Randall said. 
• Don’t omit the “why us” narrative: While investors may have different preferences, they all want to hear why they should invest in your company. Include key industry experience, education, network and other information that makes you stand out from competitors.
• Do get feedback: Leverage your network and J.P. Morgan for introductions to industry experts, mentors and advisors, and feedback on your deck. “You want somebody who knows your industry and is already in your corner, because they will have a good perspective on how you can highlight your company’s goals and strengths,” Randall said.
• Do practice your pitch: Rehearse with co-founders, teammates or friends you trust until you know your pitch by heart. Practice should also include answering questions you anticipate from investors. For example, you should be prepared to explain any gaps in your experience and how funding can address them. 
• Do keep the deck consistent: “If founders were to change the deck for every single investor conversation, they would not have any time to build their companies,” Randall said. While pitch decks should remain the same, founders can revise their talk tracks based on the specific investor. “Stay true to yourself and the company you want to build, and remember that not all advice is created equal,” she said.
• Don’t forget to include a clear ask: “Your deck is supposed to communicate what the investor is expecting to hear, and they are expecting you to ask them for money,” Randall said. “So if you have an investor pitch deck that doesn't have a clear ask for what you want from them, that is definitely a missed opportunity.”
• Do evolve your pitch deck over time: You should adapt pitch deck content for different funding rounds. As your company grows, you should also update the deck with information on traction, milestones and financials. Early-stage investors have very different baseline criteria than late-stage investors. As you progress, so will depth of detail about your company that investors need to see.