What’s the Right Structure of a Pitch Deck?

For a visionary founder, the most important component of turning their idea into reality is acquiring funding. And this relies heavily on the quality of their pitch deck.

For the uninitiated, a pitch deck is a brief introduction of your business. In the business plan vs pitch deck debate, investors tend to favor it as it’s brief, to the point, and doesn’t take a lot of their time.

Usually presented in the form of slides, it includes texts supported by images, graphs, charts, and other visuals to convey your message. It’s not as detailed as a business plan, but touch all the major components, albeit briefly.

Common pitch deck examples show that, if done right, it can leave a lasting impression on your potential investors, and may eventually play a pivotal role in convincing them to invest in your business.

Before we delve deeper into the structure of a pitch deck, let’s first focus on why your startup actually needs one.

Reasons Why Your Startup Must Have a Pitch Deck

It Introduces Your Business

A pitch deck is a quick way to explain your business to people. It’s great for situations where you need to make a strong impression fast, like when you’re trying to get money or make a sale. It helps you tell people what your business does, what makes it special, and where it’s headed without taking too much time.

Think of a pitch deck like a mini-show about your business that you put on for people who might give you money (investors). It's basically a short presentation that tells them why your business is going to be successful.

It Can Help You Get Funding

Your pitch deck is your chance to show investors why they should invest in your business and what they will get out of it. If your pitch deck doesn’t make your business stand out, investors might not be interested.

It Can Help During Meetings

A pitch deck also helps you keep your meetings and presentations focused. Without it, you might talk too much, not enough, or get off topic. This can make meetings with potential investors or customers less effective.

Simply put, having a pitch deck keeps you on point, so you can make a strong case for your business without wasting anyone's time.

It Can Structure Your Thoughts

A pitch deck helps you lay out your thoughts in a straightforward way. This makes it easier for investors to see what you’re thinking and why your business is a good opportunity for them.

Key to Getting the Desired Funding

A pitch deck can make the difference between just having an idea and actually getting the money you need to make your idea come to life. A good pitch deck shows investors your plan and convinces them that your business is a good bet.

Figuring Out What Works and What Doesn’t

Making a pitch deck can also help you understand your business better. It’s like a test run for selling your idea. You get to see what parts of your business plan are strong and what parts might need more work. This can help you improve and get ready for the real deal.

Finding the Right People

You can also use your pitch deck to find the right people to work with, like employees or advisors. It shows them what your business is all about and why they might want to be part of it.

Structure of a Pitch Deck

A well-structured pitch deck not only captures the essence of your business but also communicates its potential to investors in a clear and compelling way. The following pitch deck components can make your case stronger if you’re eyeing funding for your startup from potential investors:

Cover Slide

First impressions count, and the cover slide sets the tone for your entire presentation. So, make sure it is clean, professional, and inviting. It should have your company's name and logo prominently displayed.

Consider this slide the introduction to your business story; it should spark interest and make investors eager to learn more. A captivating image or a short tagline that encapsulates your business essence can make your cover slide stand out.

To illustrate, this cover from the Splitwise Pitch Deck from 2021 is the perfect example. The image on the right of the app clearly demonstrates what’s it about without relying too much on text.

Problem Statement

The pitch deck should focus on the solution your business aims to solve. However, for this to happen, you need to clearly define the problem you want to address through your business.

The problem statement — detailing the challenge your product or service aims to overcome — must be precise, relatable, and centered on the primary issue. However, you can take the liberty to touch on additional problems throughout your presentation but don’t deviate too much from the primary issue.

Remember that detailed research and data supporting the existence and extent of the problem add credibility to your claims. So, be specific about who experiences the problem and in what context, as this sets the stage for your proposed solution. The more relatable and urgent the problem, the more investors will be interested in your solution.

We can take the example of the problem slide of Airbnb’s pitch deck as it clearly showcases, without any fluff, the three main problems it aims to resolve.

Solution

Right after discussing the problem, you must dive into the solution without delaying for a dramatic reveal. To maintain a focused and cohesive story, this part should directly address the issues mentioned earlier. If it doesn't, you risk presenting a solution that seems to be searching for a problem.

Many entrepreneurs find articulating a clear and concise solution challenging due to their deep involvement with their product or service. Therefore, it can be hard to take a step back and explain it simply and objectively. What you need to do is to resist the temptation to cover every detail of your product and instead, concentrate on the features that genuinely captivate your users.

To support your claim, don’t forget to use images, diagrams, or prototypes. This will make your solution more tangible. However, at the same time, avoid using too many images and hyperbole. Present your points in bullets as compared to paragraphs as the former improves readability.

Lastly, avoid overexplaining your solution. You won’t get extra points to demonstrate every last thing your company can resolve. So, simply, stick to the basics.

Taking the example of the solution side in Softr pitch deck, it clearly explains the solution without relying heavily on the text. A before-after image and a couple of lines – that’s all it has taken to show the solution.

Market Opportunity

The next component in the structure of a pitch deck is the market opportunity slide. Investors are interested in seeing that your solution is needed by many people, showing that your business could make a lot of money.

As the name suggests, this part of your pitch deck will address how big your market is. You need to explain who your customers are in a way that makes sense to the investors. In case your company sells to other businesses, you can group these businesses by how many people they employ, the kind of technology they use, or where they're located.

If you're selling directly to people, you can describe your customers based on things like their age, what stage of life they are in, or how much money they make.

Simply put, this slide should provide a clear overview of your target market and its size, growth potential, and dynamics. Leverage data and trends to back up your assertions about the market opportunity. Highlighting a niche market or a unique angle you are exploiting can further pique investor interest.

Demonstrating a deep understanding of your market signals that you are prepared to capture and expand your share.

We can cite the example of Remi’s pitch deck as it very clearly defines the value of the market it intends to capture within a specified time period. It gives investors a clear idea of how soon and how much returns they can expect.

Business Model

Now that you have shown you know what challenges lie ahead, it's time to explain how you plan to make money and run your business. One of the most important pitch deck components, this part of your pitch deck is about showing your business plan in detail, answering the big question raised before.

This section could be the most crucial part of your pitch because making money is what investors care about most. At the same time, it's also tricky, especially for new companies that haven't started making money yet. They have to guess the best way to do business based on market research, and things may turn out differently than expected. Luckily, experienced investors get that.

Be ready to talk about how much money you think you will make, your profit margins, and your costs, including how much you will charge for your product or service. You should also be able to explain your marketing strategy and the basic costs of selling your product, even if you are still figuring things out.

Since there’s a lot of data to share, you can take the liberty to showcase it in two slides. However, don’t overdo it. Keep things simple and cohesive.

The business model part of Exakt Health’s pitch deck highlights in detail the net revenue using a chart.

Competition Analysis

No business operates in a vacuum. So, it is important to acknowledge your competition as it shows investors that you have a realistic grasp of the market landscape. This factor makes it an integral part of the structure of a pitch deck. It also helps them to know where you’re going to stand when you enter the market.

This slide should map out key competitors and compare your business to them on various fronts, such as product features, pricing, market share, and distribution channels. Make a point to highlight what makes your solution unique and how you plan to outperform or coexist with competitors.

Demonstrating a strategic approach to competition can significantly bolster investor confidence.

We can take the example of how Clare&me has used this graph to showcase its projected position among competitors and what sets it apart.

Team

Every business deal starts with people, and investors need to trust that the team behind your business has what it takes to make it successful. This is why people who have already made a successful business find it easier to get money for new projects.

If you haven't had a big business win yet, make sure your presentation shows:

• How much time the founders are putting into the business?
• How many years of experience in the industry the main team has?
• The business and management skills of the main team
• The technical know-how of the main team

Tips for an Effective Pitch Deck

While paying to attention to the structure of a pitch deck is important, there are other important factors that can help you introduce your business to investors. Creating an effective pitch deck requires a blend of clarity, compelling storytelling, and a keen eye for design, among other elements. Here are some effective tips that can help you in this regard:

Avoid Common Mistakes: Steer clear of information overload, lack of narrative flow, not tailoring your pitch to the audience, and neglecting visual design. A well-designed pitch deck should be easy to read and visually appealing.

Storytelling and Design Tips: Your pitch deck should be a compelling, engaging, and visually appealing story. So, make sure to minimize text to highlight key points, maintain font consistency, and ensure each slide conveys a single message.

Use Data: Use numbers to provide evidence of your startup's progress, showcase market opportunities, and present a realistic business plan and financial projections.

Communication and Brevity: A pitch deck should be brief, aiming for less than 30 words per slide and no more than 20 slides in total. Good design is essential, as it helps your pitch stand out.

Feedback and Refinement: Open your pitch deck to critique from forums or pitch practice events. There are many tools that can help you create a professional deck quickly. Integrating tracking mechanisms can also provide insights into which slides are most engaging.

Visual Appeal and Clear CTA: Enhance your pitch with visual elements like charts and images, and end with a clear call to action. Practice and rehearse to ensure a smooth delivery, and consider using testimonials or case studies to add credibility.

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