While the last few years have seen record levels of investment activity in tech startups, this Wall Street Journal article talks about how many insiders are predicting a slow-down as 2016 advances. This means lower startup valuations and more difficulty in accessing VC funding. Elaine Ramirez writing for TechInAsia covered the situation in Korea, though experts across the region and in the USA believe that predictions in Korea are likely to play out in a similar fashion elsewhere.
At G3 Partners we’ve worked with dozens of startups, helping them build a compelling investor deck and deliver it effectively and guiding them towards building an investment strategy for success. We’ve also worked with some of Asia’s top investors to put together ten essentials that your investor deck must have – executives at Golden Gate Ventures, Softbank Ventures, 500 Startups, CyberAgent Ventures & Rakuten Ventures have all contributed in some way.
At a time when raising investment is likely to become even more difficult, including these ten slides in your deck will definitely increase your chances of hitting your investment goals. While the flow of your deck may differ a little from the below, following this format will certainly set you on the right track. And if you need any additional support or guidance myself and the G3 Partners executive team are always to have a chat with startups to discuss how how we can help (email@example.com).
- Problem: pitch an obvious and applicable problem that is ideally faced by a large segment of society.
- Solution: communicate your solution to this problem using familiar concepts, originality, and value. Here talk more in terms of the value proposition, rather than the technology that powers it.
- Market: prove that a profitable market exists for your solution. It’s also important to prove that the market is ready for your solution now.
- Competitors: what can you do that they cannot? If you don’t have any direct competition, what other companies currently serve your target market and which pose a threat in the future?
- Technology: what makes your technology special and why is it primed for immediate success? Here you can talk about the nuts and bolts behind your solution. Also, it’s a good time to demonstrate how you will protect your tech from copy-cats, such as through IP protection.
- Business model: how do you plan to make money? This is vital as you will need to prove that your startup has the potential to provide at least 10 X returns to your investors.
- Marketing and Sales: how you are going to get exposure and build a following? Saying you’ll ‘use viral marketing’ or ‘Facebook ads’ isn’t enough. It’s also important here to demonstrate that you have an effective and cost efficient plan to scale rapidly.
- Team: why is your team the right team to execute on this opportunity now? Market opportunities come and go, but a great team will be able to weather storms and adapt to changing circumstances. And of course every great team is led by a great CEO.
- Call to Action: what is it that the investor could contribute to your startup? If you’re asking for money, say how much and explain how you intend to use the funding to achieve results over a given period of time.
- Milestones: what have you achieved so far and what are you trying to achieve going forward? Demonstrating what you’ve achieved to date is a good indicator of what you could achieve with additional resources.
Good luck with your fund raising and give me a shout if you need any help!