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Crafting a Killer Pitch Deck

Presented by:

Peter Harris, University Growth Fund

Hosted by:

EvoNexus

Quick Intro

Partner at University Growth Fund

9 Years in VC

International Consultant

1. The VC Mindset

How does a VC think about your company? OR what should you be thinking

about as you prepare your pitch.

Risk, Reward, & Valuation

Sending the Right Signal

FOMO

Stories

1.1 Risk, Reward & Valuation

Probability of

“Success”

Company Progress/Traction

Valuation 100%

0%

1.2 Signaling

Asymmetric Information Problem

Both sides dependent on signals

Everything you do sends a signal

of quality level

A little like dating – lots of mixed

signals

”About 15 [deals each year] will generate 95%

of all the economic returns [for that

vintage].”

– Marc Andreessen

1.3 FOMO

1.3 Stories

2. Objectives of Your Deck

Get to meeting #2, or get a quick no…

Your decks needs to:

Communicate the inevitability of your success

Create excitement and FOMO

Tell your story

3. Structuring Your Pitch

Pain (What) | Solution (Why Now) | Strategy/Traction (Why You)

3. Structuring Your Pitch

Pain (What) | Solution (Why Now) | Strategy/Traction (Why You)

Early

Growth

Late

3. Structuring your Pitch

Market Pain

Solution & Vision

Competition

Team

Strategy & Traction

Projections

Ask

3.1 Structure: Market Pain

“We were looking for a pain so big you needed a tourniquet. If you didn’t get it, you were going to die.” - Mike Maples (Floodgate)

Objective Guidance Pitfalls

Too much jargon

Too much data

No clear

connection to

solution

Help the investor

feel the pain of the

customer/market

Show the pain is deep

and wide (big market)

Explain why it happened

Make sure the pain lines

up with your solution

3.1 Structure: Market Pain

Examples

Describe the scenario

Combine data with

anecdotes

Make comparisons

Show examples

Alterna veCompe veComparison

$$$$ $$

MicroFundingInc.

“IhaveworkedwithdifferentbanksandcreditunionsbutnoonewasaseasyasMicroFunding”

BenLopezCustomer#1

“Otherfundingresourcesarejustclumsy,theymakeithardforyoutogetalongwheninthelongruntheyare

benefi ngfromyourbusiness.NotthecaseatMicroFunding”

JohnJamesCustomer#2

XYZisaLargeFragmentedMarket

3.2 Structure: Solution & Vision

“Do you hear that Mr. Anderson? That is the sound of inevitability” - Agent Smith, The Matrix

Objective Guidance Pitfalls

Solution is too

generic

“Solution” is not

convincing

Show why your

solution is

inevitable

Show how your solution

solves the pain correctly

Show how your solution

is unique

3.2 Structure: Solution & Vision

Examples

Product Demos

Clear statements

Diagrams

Visualizations

3.3 Structure: Competition

“Second place is just the first place loser” – Dale Earnhart

Objective Guidance Pitfalls

“No Competition”

Don’t understand

competition

No advantage

Show relevant

competitive

advantage

Show me the moat!

Better understanding of

customer

3.3 Structure: Competition

Examples

Strategy Map

Thoughtful data

Examples of

product

Alterna veCompe veComparison

$$$$ $$0%

25%

50%

75%

100%

0 3 6 9 12 15

PER

CEN

T O

F C

LIE

NT

S A

CT

IVE

MONTHS

BEST IN CLASS RETENTION RATES WITHIN THE INDUSTRY

LA/OC 2 2014

LA/OC 1 2015

LA/OC 2 2015

LA/OC 1 2016

AVERAGE

COMPANY BETA

58% Better Retention Rate

3.4 Structure: Team

"Success in almost any field depends more on energy and drive than it does on intelligence. This explains why we have so many stupid leaders." – Sloan Wilson

Objective Guidance Pitfalls

Too much

irrelevant info

Not impressive

Unprofessional

photos

Why are you (and

your team) the

right people to pull

this off?

Experience

Expertise

Execution

Quality

3.4 Structure: Team

Examples

Pictures and Logos

No great logos?

Show me results!

Advisors, board

members?

3.5 Structure: Strategy & Traction

“Almost every failed startup has a product. What failed startups don’t have are enough customers.” ― Gabriel Weinberg, Traction: A Startup Guide to Getting Customers

Objective Guidance Pitfalls

Too many

assumptions

No data, or

incorrect data

Describe the

strategy and show

that it’s working!

The strategy should

align with pain

Provide data that shows

strategy is working

Data trumps anecdotes

3.5 Structure: Strategy & Traction

Examples

Describe the strategy

Show how its working

Charts, logos, pipeline

3.6 Structure: Projections

“Hockey Stick Anyone?”

Objective Guidance Pitfalls

Chart without info

Unrealistic

assumptions

1% of the market

Show the upside

opportunity,

demonstrate level

of realism

Show that investor’s

expected returns are

possible

Use realistic

assumptions

3.6 Structure: Projections

Examples

Show more than

revenue if possible

Include assumptions

Keep it simple

Actuals + Projections

are awesome

3.7 Structure: The Ask

“Only one thing counts in this life: Get them to sign on the line which is dotted. You hear me? … A-B-C. A-Always, B-Be, C-Closing. Always be closing. ALWAYS BE

CLOSING.” – Glengarry Glen Ross

Objective Guidance Pitfalls

Too much

information

Setting valuation

Uncommitted

investors

How much, why,

and from where

Security

Amount of money needed

Use of proceeds

Key milestones

Committed investors

3.7 Structure: The Ask

Examples

Security, Amount

Prior rounds

Milestones

Simple

Not absolutely

necessary

Dec 2012

$1.4M Seed RoundKickstarter + Anders + Angels

June 2013

$6M Series AWin the race to

own this face

4. Closing Tips

Craft a good looking deck

Don’t waste time on obvious stuff

Educate

Tell a Story

Use few words

Know your audience (objections)

QUESTIONS?

Peter Harris | @thevcstudent