Investors use pitch decks to secure funding. However, there are different types of investors because some use a pitch deck to source funds for mature businesses, while others use the tool in the early startup phases. Besides, some investors seek innovation or social impact, while others prioritize financial returns. Visit this website to help you tailor your pitch deck to suit the particular needs of the investor you target to maximize your chances of success.
This article offers a comprehensive guideline on how to adapt your pitch deck for different investors.
1. Understand your audience
Pitch deck developers must research their potential investors before creating and adjusting the tools (pitch decks). It is important to check:
- The investment phase or stage is to understand whether they are corporate investors, private equity companies, venture capitalists, or angel investors.
- The industrial focus will help you understand whether your target investor groups specialize in sustainability, healthcare, technology, agriculture, transport, or other sectors.
- The investment thesis should indicate whether the investors look for socially responsible investments, steady cash-flow businesses, or high-growth startups.
Understanding the target audience can help create a pitch deck that corresponds to investors’ interests and increases the chance of securing funding.
2. Customize the value proposition
Different investors are interested in knowing whether or not your business offers the best growth opportunity. In most cases, investors gauge or value things differently. For instance:
The social impact investors are inclined to the environmental and social benefits and the financial returns of a venture opportunity. Thus, pitch deck creators must emphasize their corporate missions and measurable impacts. On the other hand, venture capitalists seek scalable business models that offer high-growth potential. In this case, the pitch disk should focus on your competitive advantage, revenue model, and market size.
When creating a pitch deck for private equity firms, you must highlight your exit strategies, cash flow, and profitability. These investors look for established businesses or corporate entities with strong financial performances. Finally, angel investors naturally focus on the market potential, vision, and founding team. They mainly invest in early-stage startups.
The pitch deck must highlight the business teams’ passion and expertise. Based on these factors, pitch deck creators must know and tailor their value propositions to match what the different types of investors value most.
3. Adjust major slides depending on the investor
The different types of investors keenly look at the various aspects of the pitch deck. While crafting a pitch deck, adjust and tailor your major slides accordingly. Look at the following:
Problems and solutions: For impact investors, you should emphasize how the solutions solve critical environmental or social issues. Conversely, tech investors want to see how your products disrupt the industry through innovations.
Market opportunity: When the target audiences are private equity firms, your pitch deck should focus on client retention, existing market share, and stability. On the other hand, venture capitalists expect a pitch deck highlighting the market size and growth prospects or potential. Incorporate market trends and statistics showing scalability.
Streams and Business Model: Private equity investors look for a comprehensive financial breakdown, such as financial health, cash flow, and EBITDA. For venture capitalists, your pitch deck should emphasize the potential for rapid scaling, repeatable revenue streams, and high-profit margins. Finally, angel investors expect your pitch deck to explain when your business expects to be profitable and how you intend to amass revenues.
Market entry strategy: For the later-stage investors, the focus should be on highlighting market expansion strategies, strategic partnerships, and proven traction. Conversely, early-stage investors expect the pitch deck to show the customer acquisition strategies.
Financial projections: When looking for private equity firms, provide detailed risk mitigation strategies, cost structures, and financial statements. Otherwise, venture capitalists expect to see growth forecasts and revenue projections.
Team slide: When addressing institutional investors, tailor your pitch deck to showcase a seasoned management team with industry experience. If you deal with angel investors, ensure your pitch deck highlights the passion and expertise of the organization’s founders.
Exit strategy: Different investors expect your pitch deck to highlight market strategies. For example, angel investors want you to show the long-term goals, although they are sometimes less concerned with your firm’s exit strategies. Nonetheless, private equity investors and venture capitalists expect pitch decks showing how returns will be generated. You should offer details on buyouts, IPO plans, and potential acquisitions.
4. Adjust the pitch deck style
The pitching style should aim to deliver and match investors’ expectations. For instance, when looking for impact investors, ensure that you are passionate about sustainability efforts and showcase measurable impacts. However, since private equity firms are analytical, they emphasize operational efficiency and financial performance.
Venture capitalists want evidence-based pitch decks. Hence, you should focus on market opportunity, scalability, and growth prospects, but your evidence must be data-driven. In contrast, angel investors need a compelling story. Hence, your pitch deck should be vision-driven, engaging, and personal.
5. Adjust the length and design
For tech venture capitalists, use a smooth, simple design with visual illustrations and charts. For impact investors, integrate testimonials and case studies illustrating real-world effects. When looking for private equity investors, your pitch deck must incorporate structured reports, tables, and detailed financial data. Besides, ensure that the pitch deck remains brief, approximately 10 to 15 slides.
6. Anticipate investor-particular questions
Upon submitting your pitch deck, expect investors to ask you various questions. Be prepared, and show confidence and professionalism. Be ready to answer for:
- Impact investors such as ‘What is your sustainability strategy/model?’ ‘How do you assess effect?’
- Private equity will ask you, ‘What is your market exit strategy?’ or ‘What is your profit or revenue margin?’
- Venture capitalists will ask questions like, ‘What is your burn rate?’ or ‘What is your scaling plan?’
Conclusion
Pitch deck creators must adapt the content to meet every investor’s expectation to increase the chances of securing funding. Understand your audience, anticipate investor concerns, adjust the pitch deck style, and refine key slides to offer a captivating case that resonates well with all investors. Align the pitch deck contents with the interests of each type of investor.