How to build a Series A fundraise pitch deck?

Convincing an investor to invest in your business is nothing less than a mammoth task. Investors, in choosing to support your venture, embrace considerable risk. It is therefore essential for them to have a deep understanding of your business. This understanding is often hindered by a substantial gap in information. To mitigate this, a meticulously prepared pitch deck becomes indispensable. Such a deck plays a pivotal role in enabling founders to articulate their business vision clearly and convincingly during fundraising efforts.

Furthermore, the structure and content of a Series A pitch deck differ notably from a seed-stage pitch deck. In a Series A round, the investor's commitment extends beyond belief in your promise and capabilities; it is an investment in your strategic growth and operational tactics. Therefore, crafting an impactful Series A pitch deck is vital. It should clearly explain your business model in an engaging way that captures investor interest and encourages them to explore the potential of your venture further.

In this article, we will delve into the comprehensive process of constructing a Series A fundraising pitch deck. Our goal is to equip you with a clear, step-by-step guide, enabling you to craft a pitch deck that resonates with investors, effectively communicates your business vision, and bridges all information gaps. Before we explore these steps, however, it is crucial to first comprehend the significance of a well-designed pitch deck in the fundraising journey.

Why is a pitch deck considered important for the fundraising process?

A great pitch deck is ever evolving, because once it's created, it's never static. As you grow, your deck will evolve alongside you. Since it's ever-changing, it can be hard to perfect. The hard truth is that no single deck will work throughout the different stages of your company's journey.

In essence, the key objective of the pitch deck is to convey your startup’s traction, the significant market size & upside potential for investors and the expertise of your team! Bear in mind that you are preparing a pitch deck for investors, not customers. Since investors may not be directly acquainted with the issue your product resolves, it's crucial to approach the presentation with clarity. A compelling pitch will do three things effectively: first, it will delineate the challenges your customers encounter and the consequent effects; second, it will demonstrate how your product effectively meets these needs and enhances customer satisfaction; third, it will justify the profitability and strategic sense of addressing these issues. Ensure these three key points are central to the narrative flow of your deck.

• Be explicit on why your startup is a great investment opportunity: Think of investor attention as a scarce resource that should be efficiently used. Your pitch should be clear and straightforward, allowing investors to quickly understand the essentials. Each slide should clearly convey its point, emphasizing your traction, the problem you solve, your product, market potential, growth opportunity, your team, and fundraising details.
• Tell your equity story: The aim of your pitch isn't to cover every detail of your business, but to pique investor interest enough to lead to further discussions. Ideally, your pitch deck should prompt investors to request an introductory call, which can then pave the way for deeper conversations. Plan for your initial presentation to be concise, about 15-20 minutes, to lay the groundwork for a subsequent, more detailed discussion lasting around 40-45 minutes. A strong pitch deck features slides with compelling titles that summarize the equity story, enabling the main points to be understood just from these headings.
• Be clear about the fundraise and where it will get your startup: The presentation should clearly identify the challenges to your business growth and detail how you intend to utilize the funds raised to overcome these obstacles. It should conclude by explicitly outlining your investment strategy to advance your business further.

Once you understand the purpose of your pitch deck, it becomes easier to build one. Now the next section explains the key components of a pitch deck. 

How to make a series A pitch deck

Let's delve into the process of creating a Series A pitch deck. The initial step is to draft an outline, as it's impractical to include every detail about your business. This outline, whether sketched on paper or typed in a document, serves as a blueprint for your deck. It's advisable to thoughtfully consider what to include, striking a balance between comprehensiveness and conciseness. The ideal Series A pitch deck should encompass the following slides:

1) TITLE (1 SLIDE)

Your title slide should feature your company's name or logo accompanied by a concise, one-sentence description of your business. This description should instantly clarify your business activity to the reader. A great title has the following characteristics:

• Clear and Descriptive: Instead of a broad statement like 'Pioneering digital education,' use a more descriptive line such as 'We offer interactive online coding courses for kids.' This gives a specific idea of your business, avoiding abstract terms.
• Understandable to Everyone: Choose a straightforward language that anyone can grasp. Replace technical terms like 'Revolutionizing end-to-end encryption solutions' with more accessible phrases like 'Making online communication safer for everyone.'
• Specific to Your Business: Narrow down to exactly what you provide. Rather than a general 'Eco-friendly transportation,' opt for something more direct like 'Electric scooters for urban commuting in South-East Asia.' This instantly clarifies your niche in the market.

2) TRACTION (1 SLIDE)

When presenting your business, keep in mind that investors are continuously evaluating if you are a valuable use of their time. Given that they listen to numerous pitches daily, it is crucial to stand out. Introducing a traction slide early in your presentation is an effective way to capture their attention and establish your value.

This approach allows a seamless transition from your opening statement to showcasing concrete achievements, which in turn sparks their interest to learn more about the problem your business addresses. Ensure the slide is easily comprehensible at a glance. Keep it uncluttered. Use charts, bold figures, and succinct bullet points to highlight your data. Make sure to connect the data back to your overall business narrative, demonstrating how the traction you’ve shown is directly related to the problem you're solving and the market opportunity you've identified.

3) PROBLEM (1 SLIDE)

This slide is where you define the problem your product or service solves. Here, you should articulate how the current situation affects your customers and the specific challenges they face. The purpose of this slide is to lay the groundwork for the solution you're offering, ensuring that your proposed solution appears as a natural and fitting response to the problem.

Furthermore, your problem statement essentially represents the market opportunity. Hence, it's crucial to craft this statement in a compelling and succinct way, ensuring it remains both realistic and pertinent to your audience. Clearly articulate the problem your business addresses. Use data or statistics to underscore its scale and significance, helping to establish a strong case for your solution.

Use specific, concrete examples to demonstrate existing problems rather than making general statements about issues. Briefly outline existing solutions and their limitations. This not only sets the stage for your solution but also positions it as a necessary and superior alternative.

Ineffective Problem Statement: "The process of job hunting is inefficient." This is too vague and lacks persuasive details.

Effective Problem Statement: "Here's the current state of job hunting: applicants spend an average of X hours applying to jobs, face Y weeks of waiting for responses, and only Z% successfully find employment through traditional methods..." This detailed approach clarifies the specific challenges in the job-hunting process, paving the way for your solution.

4) SOLUTION (1-3 SLIDE)

After defining the problem statement, the next crucial step is to articulate your solution. This slide is pivotal in your pitch deck, as it showcases your unique approach to transforming your customer's experience. Here, you'll concisely illustrate how your solution addresses the identified problem, underscoring the tangible value delivered to your customers.

Few points to keep in mind while preparing this slide:

• Use concrete figures to demonstrate your impact. Instead of just claiming that your product is the fastest, most user-friendly, or most affordable, provide specific numbers to substantiate these claims. For instance, Clearly state what sets your solution apart from existing alternatives. This could be through innovation, better technology, a unique approach, or superior cost-effectiveness.
• Concentrate on the current development stage of your product, rather than projecting its future potential. Provide evidence of your solution’s effectiveness, such as case studies, pilot results, or customer testimonials. This builds credibility and trust in your solution. 
• Instead of merely listing your product's features, focus on explaining its practical application and the resulting value to the customer. Use visuals like diagrams, flowcharts, or product shots to visually communicate how your solution works. Visual aids are particularly effective in making complex information accessible. For instance:

 "Instead of stating, 'Our app features 10,000 workout routines,' you could present it as, 'Our app helps users increase their fitness levels by offering personalized workout plans, leading to a 20% improvement in stamina within two months.”

5) MARKET (1 SLIDE)

In this section of the presentation, you are tasked with delineating the market opportunity your venture aims to capture. Investors primarily allocate capital to ventures with the prospect of generating substantial returns; thus, they are keenly interested in understanding the potential scale of your enterprise. This involves a detailed analysis of the TAM-SAM-SOM, providing a clear picture of the market scope your company intends to penetrate.

Usually there are several ways to arrive at these numbers.

• Top-down approach: Using reports available on internet from reliable sources
• Bottom-up approach: Using real numbers and data gleaned from your current business

The Bottom-Up approach is often preferred over the Top-Down method because it uses actual business data for calculations. For instance, you can determine the Total Addressable Market (TAM) for your business by multiplying the "number of potential customers by the value of each customer," resulting in a precise TAM figure.

In contrast, the Top-Down approach relies on market reports that may not provide data specific to your product's niche. This is particularly relevant if your business targets a subset of a larger market or is creating a new market. Therefore, selecting the appropriate methodology should depend on the unique aspects of your business to ensure you obtain the most accurate figures.

Further you need to highlight key trends affecting the market and factors driving growth, such as technological advancements, regulatory changes, or shifts in consumer behavior. This demonstrates your understanding of the market dynamics. 

6) COMPETITION (1 SLIDE)

This slide is crucial for investors. If there are competitors addressing the same problem as your venture, or a variation of it, investors will want to understand your unique value proposition. Demonstrate why your solution is significantly superior to others in the market. The objective is to assure investors of your competitive advantage, emphasizing a robust moat that safeguards your business from rivals and underscores its defensibility.

Omitting this slide under the assumption that investors will not be aware of your competitors is a significant oversight. Investors invariably conduct comprehensive due diligence prior to finalizing their investment decisions. It is imperative, therefore, to meticulously prepare this slide, clearly articulating your differential advantage.

7) TEAM (1 SLIDE)

This slide is an essential component of any pitch deck, regardless of the business stage, because investors commit their resources not just to the business, but also to the team behind it. If your team represents a key competitive advantage, it may be prominently featured in the beginning of the deck. A team constitutes a competitive edge when:

• Founders have successfully built and exited a company in the past.
• Team members possess relevant experience in managing or contributing to ventures within the same industry or sector.
• They hold unique qualifications or expertise, making them exceptionally suited to launch the venture, a scenario often observed in specialized fields such as biotechnology or advanced technology, where domain knowledge is paramount.

Furthermore, the primary purpose of this slide is to underscore the founders' competency in steering and scaling the business. It also showcases the founders' adeptness at assembling and maintaining a skilled team, highlighting their recruitment and retention capabilities. Successfully identifying and engaging the ideal candidate with the appropriate skill set for a specific role, at the right moment and compensation, positions you closer to realizing your vision.

Lastly, there are several key considerations to bear in mind while crafting your team slide to effectively communicate the team's strengths. These are as follows:

• Feature each key team member with a professional photo and a brief bio that includes their role, expertise, and relevant experience. Highlight past achievements, particularly those that pertain to your current venture or industry.

• Opt for concise bullet points to describe team members, avoiding dense paragraphs. Each bullet should clearly outline the individual's role, their actions, and the resulting successes. This structured format ensures clarity and demonstrates each member's value and expertise. 
• If relevant, mention advisors, board members, or external partners who add value to your business. This can demonstrate broader support and resources beyond the core team.

8) FUNDING ASK AND USE OF FUNDS (1 SLIDE)

This slide serves as the culmination of your entire pitch deck, tying together all elements presented from the beginning. It is critical to concisely convey the following information:

• Details of the raisesome text
  • Structure: Outline the organizational structure, including any subsidiaries or parent companies, to provide clarity on the business framework.
  • Investors: Highlight existing investors, and other relevant stakeholders
  • Amount of raise: Specify the amount of funding you are seeking. This can be presented as a specific figure or a range, depending on your strategy.
• Use of funds: Offer a high-level overview of how the raised funds will be allocated. This should include key areas such as product development, market expansion, team growth, and other critical investments for scaling the business.
• (Optional) Traction in next 18-24 months: Link the use of funds to specific milestones or phases in your business plan. Present a timeline showing when each portion of the funds will be utilized and what business goals will be achieved with that expenditure. This roadmap not only sets expectations for potential investors but also demonstrates your strategic planning and vision for the company's future, aligning with the typical fundraising cycle for your next round of financing.

9) APPENDIX (AS MANY SLIDES AS NECESSARY)

The appendix plays a crucial role in enhancing your pitch deck by providing additional detail and support for your presentation. It should be structured to include:

• Clarification Slides: Any aspect of the pitch deck that requires further elaboration for better understanding or clarity on its use case should be addressed here. This ensures that investors have access to a more in-depth explanation of specific points without cluttering the main presentation.
• Financial Information: Incorporate slides that summarize historical financials and future projections. Utilizing charts and graphs based on your financial data offers a clear and concise way to convey this information. Detailed financial statements and documents should be readily available in your data room for thorough review by interested parties.
• Preemptive Answers to Potential Investor Questions: Anticipate questions that investors are likely to ask and prepare visual aids or slides that can assist in responding to these inquiries effectively. This proactive approach demonstrates thorough preparation and a deep understanding of your business model and market.

As you engage with investors and receive feedback, the appendix will naturally evolve, becoming more robust and tailored to address common queries and concerns. This iterative process is invaluable, as it refines your pitch and strengthens your proposition to potential investors.

Conclusion

Creating a Series A pitch deck is a crucial phase in the fundraising journey. Many startups enlist the expertise of advisory firms for guidance in crafting essential materials such as the pitch deck, data room, and investor lists, and to navigate the fundraising process effectively. While constructing a pitch deck may seem daunting, the task doesn't end with the initial creation.

The necessity for continuous refinement of your pitch deck cannot be overstated. It is advisable to solicit feedback from various industry stakeholders before presenting to investors. Additionally, allocating a few hours weekly to review feedback and insights from investor interactions is essential for enhancing your deck and pitching approach. To facilitate this iterative process, consider the following questions after each pitch:

• Which aspects of the pitch captured the most interest or engagement from the investors?
• Were there any specific concerns or objections raised by potential investors? How can these be addressed in future presentations?
• Did investors provide any recommendations or insights that could be incorporated into the pitch deck?

This reflective approach ensures your pitch deck evolves in response to valuable industry feedback, increasing its effectiveness and your chances of securing investment.