WHAT IS AN INVESTOR PITCH DECK DOCUMENTATION?
An Investor Pitch Deck Documentation is a PPT Document created to provide the necessary Information to the Investors (Angel Investor or VC’s) by the Startup Company on what is the Business Plan of the Startup and How is the Startup going to the Unique in the Market. This Investor Pitch Deck Documentation will also consist of the Market Research Analysis of the Data & the Facts along with Competitors Analysis.
The Right Investor Pitch Deck will be having the Complete Understanding of the Business with the Data’s & Facts.
TYPES OF INVESTOR PITCH DECKS –
- Investor Pitch Deck with Graphics
- Investor Pitch Deck with Minimal Graphics
The Investors will be usually considering the Data and the Facts more compared to the graphical representation of the Investor Pitch Deck Documentation. Though If you feel that Graphical Interpretation also plays a major role in your business such as Animation Company, Graphics Oriented Company, You can Provide the Graphical Representation for the Same. Otherwise, It is better to do with minimalist graphics with more details on the data and the returns.
WHAT ARE THE POINTS TO BE FOCUSED ON PITCHING TO ANY INVESTORS?
- Company Name / Brand Name
- Company Stake Holders
- Directors of the Company
- Company Business Short Plan
- Revenue Plan
- Target Market
- Market Expansion
- Competitors Analysis
- Unique Selling Proposition
- Customers & Customer Feedback
- Technology Planning
- Revenue Planning for 5 Years of Time
- Expenses Planning
- Profit Margin
- Fund Requirement
- Fund Deployment
- Return of Investment for the Investors
- Company Valuation Percentage in 5 Years
- Company Asset in 5 Years
- Futuristic Company Plan
WHAT IS THE PROCEDURE TO PITCH ANY INVESTORS?
Yes, Investors would be more interested in connecting directly with the Founder of the Company rather than the Investment Consultants or Business Consultants. You can connect with the Investors in the Platforms such as LinkedIn. Give a Connect to the Investor before understanding whether they are the Potential Investors for your company. Do a Due-Diligence on the Investor online before connecting with the Investor. Once you connect with the Investor provide the First Short Message in the LinkedIn Messenger as below,
“Hello ‘X’, I am ‘Vasanthamugi’, Founder of ‘VM AFFLUENCE’, I am connecting with you to pitch about our Business Idea where we are in the stage of “Idea Stage” or “Proof of Concept” Stage looking to raise the funds of “0.5 Million USD” to be utilized for the “Technology Improvement” or “Product Improvement” or “Market Expansion”, Kindly request you to share your Email ID so, I can mail you the Pitch.
Note – Do not send the Pitch in the LinkedIn Messenger. It clearly shows that you send your pitches to several people so, don’t send your pitch in the LinkedIn Messenger.
Get the Mail id of the Investor, write a Clear mail, explaining about the business and why do you Require Funds Etc.
MAIL AS BELOW,
Hello “Mr. X” or “Ms. X”,
Greetings from VM AFFLUENCE! I am Vasanthamugi, The Founder of VM AFFLUENCE. We are a Graphic Designing and Digital Marketing Company located in Bangalore, India. We are connected in LinkedIn, We would like to Pitch our Business Plan to you.
Company Name –
Business Short Plan –
Company Registered On –
Revenue Per Month –
Team Size –
Funding Expectation –
Seed Investment or Series A Funding –
Attach the Investor Pitch Deck Documentation In the Mail, Check the Best time to have a call If they are Interested and Send the Mail to the Investor.
WHAT IS THE DIFFERENCE BETWEEN THE INVESTOR PITCH DECK AND THE BUSINESS PLAN DOCUMENT?
- Investor Pitch Deck is usually done in a PPT Presentation Format which usually has 30 to 50 Pages of PPT Document.
- Business Plan is done in the Word document having the 50 to 70 Pages of Word Document.
When You meet the Investor for the First Time, you will be Sharing the Investor Pitch Deck Presentation. If the Investor is interested in your business and willing to Invest in your Company or the Plan or the Idea or the Concept. You sign the Non-Disclosure Agreement with the Investor. Once the Investor signs the NDA, you share the Complete Business Plan Document to the Investor.
WHAT IS A BUSINESS PLAN?
A Business Plan Document is a highly Informative document on the complete Business Plan of the Company which includes the Target Market, Market Analysis, Competitors Analysis, Target Segment of the People with the Fund Requirement and the Return of the Investment Etc. This Document will have the Complete Business Data for the next 5 Years of Time.
This document has to be given only to the Serious Investors after signing the NDA Document (Non-Disclosure Agreement).
WHY DO YOU NEED TO SIGN THE NON-DISCLOSURE AGREEMENT WITH THE INVESTOR?
The Investors who read your Investor Pitch Deck Documentation and Signs the NDA(Non-Disclosure Agreement) is usually the Serious Investors who are willing to invest in your Business. So, only after Signing the NDA the Business Plan and the Financial Modelling Document must be shared with the Investors.
WHAT IS A TERM SHEET & WHO PREPARES THE TERM SHEET?
A Term Sheet is the Legal Document shared to the Founders of the Company If the Investor Is Interested to Invest in a Particular Business. Term sheet is Prepared by the Company lawyers, It is a Legal Binding Document.
Lets me discuss with you on the Term Sheet in Other Series of my Blogs.
WHAT IS THE PERCENTAGE OF THE SHARES TO BE GIVEN TO ANY ANGEL INVESTORS OR VC’S?
The Percentage of the Company Shares given to the Investors is based on the Current Company Pre-Money Valuation and the Investor willing to Invest the ‘X’ Money in your Company.
Usually Few of the Blogs Online Mention that 30% of the Company Shares to be given to the Seed Investor, but 30% of the Company Shares are usually high in value which is 1/3rd of your company. So, providing only 11% to 13% of the Company Shares to the Investor would be the best option.
ARE YOU CONNECTING THE RIGHT INVESTORS?
Do a Proper Due Diligence on the Investor before connecting with any Investor. TIME & EFFORTS are the two essential components of any business. Few people would be willing to know your business or get ideas from your business, which is not the right Business or Investment Proposition for your company.
Lets Now discuss on how to create the complete Investor Pitch Deck Documentation,
COMPANY NAME / BRAND NAME
Provide your Company name & Brand name of the Company very Clearly in the Investor Pitch Deck Documentation. Your Brand name should be Significant and Unique describing the Company and the Service in a Short Form.
Provide the Complete details of the Stakeholders of the Company in the Investor Pitch Deck. Provide the details of the Short Profile of the Company Stake Holders along with the LinkedIn Profile.
DIRECTORS OF THE COMPANY
Provide the Complete details of the Directors of the Company with their Previous experience.
COMPANY BUSINESS SHORT PLAN
A Short Brief of the Business Plan along with the Crisp understanding of the Futuristic goal of the Business to be provided in the Business Plan Document.
The Complete Revenue Plan of the Company or Services provided by the company should be explained in the Investor Pitch Deck Documentation.
Target Market Analysis and the Data Facts is very Important for the Business. This Data should be shared with the Investor when they are willing to understand the Market to which the Product/Services are being sold.
Market Expansion which means clearly the expansion of the Business with the additional Clients/Customers to get add on to the Business. This very clearly explains the MARKET EXPANSION means Customer Acquisition, This has to be defined in the Investor Pitch Deck.
The Current Competitors having the same business proposal has to be analyzed, every business will have their competitors. If the Business is not directly the competitor, The Adjacent business sales model can also be taken as Competitors.
The Complete Competitor Analysis must be done and Updated in the Investor Pitch Deck Documentation.
UNIQUE SELLING PROPOSITION
Inspite of having the Competitors for your Business, Understanding the Unique Selling Proposition of your Product or Services will make your Product to Outstand in the Market to reach the Customers.
CUSTOMERS & CUSTOMER FEEDBACK
Knowing the Market with the Feedback on the Customers who are going to use your Product will be an added advantage to be updated in the Investor Pitch Deck Documentation.
The Technology plan for the next 5 years should be clearly defined in the Investor Pitch Deck Documentation. Technology which you will build will be the Proprietary Property of your company.
REVENUE PLANNING FOR 5 YEARS OF TIME
Revenue Planning for the Company for the Next 5 Years of Time based on the Company’s Market Analysis and Technological Improvement Phases has to be defined in the Investor Pitch Deck Documentation.
The Complete Expenses for developing the Technology, Building the Team, Customer Acquisition has to be defined in the Investor Pitch Deck Documentation.
I will update the few more data’s on the same with CAPEX & OPEX in my next Blog Series.
Understanding the Profit Margin with the Expenses would lead your Business Well.
Explain the Fund Required to develop the Complete Technology and Team.
Explain the Fund Deployment for the Fund Requested.
RETURN OF INVESTMENT FOR THE INVESTORS
Explain the Return on the Investment for the Investors with the Amount ‘X’ Invested.
COMPANY VALUATION PERCENTAGE IN 5 YEARS
Explain the Company Valuation (Pre-Money Valuation) based on the Business Plan.
COMPANY ASSET IN 5 YEARS
The Assets of the Company are as below,
- Technology Developed (Proprietary
- Team of the Company
- Physical Assets such as Laptops, Printers Etc
- Patented Concept of the Business
- Business Plan
- Trademarked Logo
- Paying Customers
- One Time Customers
- Passively Paying Customers
FUTURISTIC COMPANY PLAN
The Company’s Futuristic Business Plan is an added advantage.