As you move forward with securing funding for your startup, it’s getting more and more important to understand the critical subtleties of startup pitch decks and how to adjust the investor deck based on the funding stages. The things is, all funding rounds – regardless of whether you seek seed funding, Series A, or further development – differ in terms of investor preferences, investor priorities, things that they are concerned with, and, finally, the things that they focus on. That being said, focusing on ways to reflect on ever-changing investor demands and expectations in your pitch deck is not just advisable – it is a must. Once you learn about these things, you will not only be well-prepared to secure your next round funding but also able to form a strategic partnerships that will help you take your business even further.
This article will present you all steps of creating a pitch deck for every stage of funding that your startup might be interested in, from pre-seed and seed up to Series A, Series B, and even later stage funding. You will also be able to learn more about some of the most critical priorities that investors hold at every frontier and the things that you should focus on when presenting. We will also consider focusing on funding milestones and your objectives and requirements and the ways of portraying some of the core elements of your pitch deck. Following this guide will allow you to both create an all-encompassing pitch deck and get ready to meet the shifting demands of your business and its potential backers.
Understanding Pitch Deck and Funding Stages
Definition of Pitch Decks
The definition of an investor pitch deck is that they represent a short presentation that highlights some of the most critical elements of your startup in front of potential investors. A typical pitch deck consists of 10 to 20 slides and includes some of the most important parts that you should pay attention to, such as your business operation concepts, your product or services, your needs in funding, expected and target markets, and your interest in reaching specific financial goals. The success of your pitch deck presentation in reflecting your startup’s full potential will pave the way for you securing the necessary funding. A successful pitch deck outlines the key components and evolves as your company progresses through different funding rounds.
Importance of Pitch Deck Funding Stages
Recognizing funding stages and your journey from startup to enterprise provides necessary guidance through which each pitch deck should be tailored. Generally, the process begins with financing through the seed round of funding, possible through angel investors, friends, family, or founders financing their own startup. By the time it moves into Series A finance, the business is already in the process of evolving and growing, and the funds should be larger. This specific series will generally gather all mid-size investments that allow major company scaling. A well-prepared Series B pitch deck is crucial for raising funds to scale operations, accelerate growth initiatives, expand the team, invest in sales and marketing efforts, enhance product development, and build infrastructure to support increased demand. Next, the funding moves into Series B, and potentially, Series C, at which point financial injections shift to expansion and company-building for a proven successful business. Evidently, with each funding stage, financial injections shift towards least risk/greatest investment.
Although different criteria apply for different funding stages and for different companies, each stage also reflects on the company stage. For example, beyond the initial seed round, there is a more focused seed stage, where the majority of financing is highly uncertain and generally contains much lower volumes than Series A or later. Series B and later can feature a more pronounced venture capital presence, focusing on substantial investment in a company that is proven to be a successful business, meaning its risk is already considerably lowered. Each stage of financing reflects upon the current placement of the startup, and as such, it also sets the goals and OCI. Since different expectations generally influence different pitch decks, a logical analysis of how this milestone was reached and what milestones are expected provides both the startup creator and the investors with a level of strategic awareness and crisis management capability within startup formulation.
Read here more about Pitch Deck Funding Stages: How to Personalize Your Pitch Deck by the Stage
