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Seed Funding Pitch Deck
Business Plan Articles
When it comes to raising money for your Startup, seed funding is usually the very first investment that is made into your business and is what you absolutely need to begin your operations. Typically you do not yet have a product to demo
or sales to show, so the pitch deck presenting the idea is the most tangible thing you have. While this is not an ideal situation, having a very strong pitch deck formulated in a way that helps investors understand what you do is imperative
to passing the ‘screening round’ and entering serious discussions with investors. This article provides insight on how to structure a pitch deck for seed funding.
Problem & Solution
This is perhaps the most important section and if it is not compelling enough – you risk being disregarded entirely by investors relatively quickly. Investors want to understand that the problem you are solving in the market is both
substantial enough for people to pay you and effective enough for them to continue using you. Chances are, there is already someone attempting to address this problem and in this instance, you must communicate how you are better than
them and why they cannot replicate you. If you fail to do this, investors will ask how you are different from ‘X’ solution or ‘Y’ company and you risk them proceeding to even read the rest of your pitch deck.
Related: Avoid these 7 Pitch Deck Mistakes
The business model for a seed round company should be simple as possible. Some Startups try to enter the market by simply ‘adding more features’ than another company. Investors realize that unless these companies cannot add these features
that are both proven to be in-demand by the customers and will sacrifice the main business model of your competitors, they have probably already considered adding them or are planning to add them soon. Hence, your business model must
be unique and competitive and generate profit for your business. This is how you will implement the solution to the problem so investors can assess how feasible it is for you to generate a profit by providing such a solution.
The financial forecasts for a seed round pitch deck are based on speculation. However, some investors do try to understand the projections and assumptions you used to gauge the profitability. It is possible to identify inconsistencies
with the business model and financial projections that will indeed sink you. For instance, if you have free memberships that cost a lot of money to manage and you need to convert 20% of these free members to paid members, which is
different than the 2 – 5% average for freemium companies, then you have a bit of a problem. Rather than trying to see how much money they can make, investors are usually trying to identify flaws with your business model through the
financial projections – so be aware and make them conservative rather than wildly optimistic.
Related: Approaching Investors for Capital
What is Included in Our Custom Pitch Deck Service?
- Marketing Plan
- SWOT Analysis
- Competitive Analysis
- Profitability Analysis
- Personnel Plan
- Organizational Chart
- Company Valuation
- Executive Summary
- Company Description
- Keys to Success
- Three Year Objectives
- Product or Service Description
- Market Research
- Fundraising Support
- 12 Month & 3 Year Profit & Loss
- 3 Year Balance Sheet
- 12 Month & 3 Year Sales Forecast
- 12 Month & 3 Year Cash Flows
- Break-Even Analysis
- Financial Ratio Analysis
- Management Team