You’ll want to show the market size for your product. This can include profiles of target customers, but be prepared to answer questions about the cost of acquiring these customers. Not knowing this information is a red flag to investors. If you already have sales, you can discuss your growth and forecast future revenue.
7. Projections or Milestones
It is difficult to create financial projections for a startup. If you don’t have a long financial history, your forecast is really just an educated guess. Instead, you should present the milestones that you’ve already reached.
Every business has competition even if you think you’re offering something new and unique. List your competition and why your product/service is different from their model. If your competitors have been acquired, list acquisition prices and who acquired them.
9. Business Model
Every investor wants to get his money back, so it’s important to tell them how you plan on generating revenue. Show a list of the various revenue streams for your model and the timeline for each of them. How will you price your product and what does your competition charge? You should also discuss the lifetime value of your customer and how you will keep him engaged.
If you have already raised money, you will want to talk about how much, who invested and what you did with it. If you have not raised money yet, talk about what you have accomplished with minimal funding. If you have personally funded your startup, make it known. Investors like to see entrepreneurs who have invested their own money. If you’re pitching to raise capital, list how much you’re looking to raise and how you intend to use the funds.
Preparing the Presentation
The above topics are critical when pitching an investment community, but be ready for questions. Learn a bit about your audience and anticipate their own passion points. Here are three talking points to keep your investor engaged and interested.
- Include any press you’ve received on a backup slide.
- Highlight any large barriers to entry in your field. They indicate that you have limited competition, that your concept has first-to-market exclusivity for a longer period of time.
- Investors are always thinking about the exit, so have a strategy in place and be able to talk about it. It helps to list any companies that may acquire yours, including similar products that have been acquired in the past.