We know how meaningful funding can be when you have a great idea and want to bring it to life. We also know how daunting it can be to secure funding to see it through. As investors that genuinely engage with the businesses we support, we created this comprehensive guide to help you up your funding presentation game. From our own experience, we hope this helps you succeed and find the right investors for your vision.
Getting Started
First off, you will need to deliver a compelling and persuasive presentation. From your story, solution and flow, to knowing your numbers inside and out, we’ve captured the key steps and strategies to help you prepare for VC funding presentations and increase your chances of success.
When presenting to us, we’ll look for concise language (avoid fluff), make eye contact, and if online, then a branded background will help add polish to your presentation. We believe in people, so tell us why you’re in the space, what sparked the solution you’re providing, why you’re the person or team to do it. We want to know your why.
If you need help with the overall presentation template, note we have included one at the bottom of this post to help get you started.
Craft a Compelling Story
Create a narrative that not only explains your business but also captivates your audience. Start with a compelling opening that highlights the problem your product or service solves. Develop a clear and concise story that outlines the market opportunity, your unique value proposition, and the potential for growth. Show your path to revenue, revenue growth and, ultimately, profitability, including the timeline expected for KPIs.
Master the Pitch Deck
A well-structured pitch deck is crucial for conveying your business idea effectively. Include key elements such as the problem statement, solution, market opportunity, business model, competitive landscape, and financial projections. Keep slides visually appealing and concise, with a balance of text and visuals. Limit your pitch deck to around 10-15 slides to maintain the investors' attention and don’t add graphics or designs that distract from the key message.
Show Traction
As investors, we want to see evidence that your business is gaining traction. Include key performance indicators (KPIs), user metrics, customer testimonials, media coverage, and any notable achievements or milestones. Demonstrating traction helps build confidence in your ability to execute your business plan. Insights to the overall market you are part of is helpful here as well. Show the untapped or underserved potential.
Know Your Numbers
Be well-versed in your financials. Clearly articulate your revenue model, cost structure, and projected financials. Be prepared to discuss your burn rate, customer acquisition costs, and lifetime value. Investors need to see that you have a solid understanding of your financial position and a clear path to profitability. If you are working toward an exit strategy or date, share it - a motivated team with goal dates and a plan is highly compelling. Highlight what series of funding you are currently in, and how much you are looking to raise in this round. Explaining how you plan to allocate those funds shows forward thinking and will help back up your math.
Address Potential Concerns
Anticipate and address potential concerns or questions that investors may have. Be transparent about challenges and risks, and provide strategic plans for mitigating them. This shows that you've thought critically about your business and have a plan for overcoming obstacles. If there are key competitors to be aware of, acknowledge them before the investors do and be prepared to explain how you are poised to succeed in the space.
Once the deck is complete, and the team has thoroughly reviewed for errors, get ready for presentation time.
Practice, Practice, Practice
Rehearse your presentation multiple times to ensure a smooth and confident delivery. Practice in front of a diverse audience, gather feedback, and refine your pitch accordingly. Familiarity with your material will boost your confidence and help you handle a variety of questions effectively.
Be Ready for Q&A
Prepare for tough questions by conducting a thorough self-assessment of your business. Anticipate potential concerns and develop thoughtful, well-reasoned responses. Be honest about what you know and don't know, and show a willingness to learn and adapt. If the investors are well versed in your space, they will likely be ready to provide you feedback during the pitch - their expertise may become critically helpful, so stay open to the conversations that may ensue. Note, everyone has a different style, so if you find a pitch wraps with little Q&A or conversation, don’t be discouraged.
Know Your Audience As you prepare to meet with different investors, do your research. Research the venture capital firm thoroughly, including its investment focus, portfolio companies, and the specific partners you'll be meeting (LinkedIn is helpful for this). Consider tailoring your presentation to align with the interests and preferences of the investors you're targeting - an additional slide that shows alignment may be helpful. A little prep work and acknowledgement of why it’s a good fit can go a long way in building rapport and interest in your business.
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In Conclusion Mastering the art of VC funding presentations requires a combination of thorough preparation, compelling storytelling, and a deep understanding of your business. By following the above steps and incorporating feedback from mentors and advisors, you'll be better positioned to capture the attention and investment of venture capitalists, propelling your business towards greater success.
Remember, each presentation is an opportunity to showcase not just your business idea but also your ability to execute and navigate the challenges of entrepreneurship.
Pitching to LJRM For a full breakdown of what we, at LJRM, look for in a pitch, read the below list of criteria. To begin the pitch process, please submit this form.
We are interested in diverse businesses and participate in a variety of sectors, with a focus on the people behind the idea whose values align with ours. If you believe we could be a good match, please don’t hesitate to reach out and be prepared to discuss the following.
Be ready to discuss:
Your product offering. What problem are you solving?
Brief history of business (why, how, when)
Current status of the business
Overview of team, and other investors we should be aware of (including any family members from within team or investors/personal relationships)
Finances
Current company valuation - EBITDA
3 Years worth Financials with commentary, where applicable
If you have not been in business for 3 years, not to worry, we’re still keen to hear from you, so simply include what you can in this area
Projections for current year end and forecast next 2 years with explanation
What’s working, what’s missing to hit the next level
Provide any insights that will help give perspective on product and market awareness
The Ask
Do you have a defined investment ask of LJRM
What is the proposition
How will the funds be used
What measurables will be in place to prove success
Here's a detailed presentation outline for those that need it
Introduction: Start with a brief introduction of your company and the purpose of the pitch deck. Clearly state what your business does and what problem it solves.
Problem Statement: Identify the problem or pain point your product or service addresses. Explain the market gap and why there is a need for your solution.
Educational slide: Provide context on the market(s) and the total addressable market within each.
Solution: Present your product or service and how it addresses the identified problem. Highlight its unique selling points and advantages over competitors.
Market Opportunity: Provide an overview of the market size, target audience, and potential for growth. Investors want to see that there is a significant market for your offering.
Business Model: Explain how your business generates revenue and the pricing strategy. Provide insights into your sales and distribution channels. Provide pricing comparables to your competitors, and why/how your pricing is competitive against them.
Traction: Showcase any significant milestones, achievements, or traction your business has gained so far. This could include customer testimonials, partnerships, or sales figures.
Competitive Analysis: Identify your main competitors and analyze their strengths and weaknesses. Clearly explain what sets your business apart and your unique value proposition.
Marketing and Sales Strategy: Outline your marketing and sales plans to acquire and retain customers. Explain how you plan to reach your target audience and drive sales.
Financial Projections: Present your financial forecasts, including revenue projections, expenses, and profitability. Use realistic assumptions and be prepared to back up your numbers.
Use of Funds: Clearly state how you intend to use the investment funds. Provide a breakdown of how the money will be allocated to different aspects of the business.
Team: Introduce your management team and key personnel. Highlight their relevant experience and expertise that makes them well-suited to execute the business plan.
Milestones and Timeline: Share your short-term and long-term goals, along with the projected timeline for achieving them. This will demonstrate that you have a clear vision and actionable plan.
Risks and Mitigation: Be transparent about the potential risks your business might face and how you plan to mitigate them. Addressing risks shows that you've thought critically about the challenges ahead.
Ask: Clearly state the amount of funding you are seeking and the type of investment you are offering (e.g., equity, convertible notes).
Appendix: Include any additional supporting materials that investors might find useful, such as product demos, customer case studies, or press coverage.
A last reminder: A pitch deck should be concise, visually appealing, and easy to follow. Avoid jargon and use data and visuals to illustrate your points. Tailor your pitch deck to suit your specific audience and be prepared to answer questions and provide more detailed information during your pitch presentation.
Good luck!
To get started with the LJRM team, send us a message
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