Cabify is a ride-hailing app in Spain. CEO Juan de Antonio founded the company in 2011, and its main rival is Uber. In 2019, Cabify bagged a $400 million investment from a funding round.
How did they do it? One way to secure funding is an effective pitch deck. A pitch deck is a visual presentation. It is what people use to introduce the core of a business to investors.
Don’t worry if you don’t know how this works. There are lots of templates on the Internet. Even the same pitch deck that Cabify used is available online.
Basically, a pitch deck should effectively explain what your business is all about. Business pitches do not usually last for more than 5 minutes. Be concise and use the following parts effectively:
People usually put little thought into their cover slides. It is a mistake you should avoid. This is the first thing that investors see when you present. Make sure that something will strike their interest. Just like in storytelling, the first words are the hook.
The cover slide should give them an idea about what they will hear in the next minutes. Don’t just copy and paste your business logo there. A powerful way to leave an impact is to use an image. The image should be the best representation of your business.
Make sure you put your contact number here. You don’t want to leave out such important information.
Every business has a problem they aim to solve. What’s yours? Explain clearly how your product or service helps enhance people’s lives.
Make sure you focus on a single problem. Leave out the idea that you can solve multiple problems at once. Tell potential investors why the business exists in the first place. What do you want to do? Who do you want to help?
Demonstrate how your business is going to solve the problem. Walk the potential investors through the process. Dive into the specifics.
You are lucky if you get a chance to pitch to investors in person. Make sure that they experience the product. They should at least see how your products work or what they look like. If your business focuses on full-scale home renovations or minor upgrades and part of your line are aesthetic home accessories, let the investors see and touch them.
Show them the quality. Make your potential investors see what is unique about your home accessories. If you can, demonstrate their actual use.
This is important to show them that your products are of high quality and are worth investing in.
A discussion on the market size in your pitch deck is also essential. This will determine the business’s potential returns.
Sometimes, the market size affects an investor’s decision. They might not invest if the target size is small. That means the potential for returns is low.
Use visual tools such as graphs and tables. Show them what they will be missing out on if they decide not to invest.
This slide should contain the names against whom you are competing. Include all competition. Show your strengths compared to their brands.
But also be completely honest about what you think you lack.
Your home accessories will not have a selling point if you don’t offer anything unique. In this slide, show what you offer that other brands don’t. Include organic feedback from real customers who enjoyed your products.
Investors do not invest in plain words; they need proof. Show how your company has been doing.
Show your company’s traction through visual representations. How many customers has your company reached? How many sales have you made? The repetition rate is also essential. Show the number of customers who availed of the products multiple times.
Amount Being Raised
If you have received any funding in the past, tell them. This increases your chances. If somebody has already invested in you, why can’t they? Previous or ongoing funding means that people see potential in your business to give you support. It’s best to put a range of how much you wish to raise.
Use of Funds
Include a breakdown of what and where you will use the funding. This breakdown will inform investors of your plans. This also shows your level of awareness when it comes to finances.
Pitch decks are fascinating. In just 20 or so slides, you can have the chance to get the funding you wish to get for your business. Since there is so much at stake, study your strategy well. Everything that goes into a pitch deck should be justified. They should be factual and honest. Lastly, believe in the potential of your business. Otherwise, you can’t make other people do so.