Angel Investor Pitch Decks: 5 Tips For Creating Compelling Presentations
The rewarding journey of angel investing leads to hundreds of startup pitch decks a year. With time an ever-dwindling resource that an angel investor spends sparingly on a pitch deck, it is crucial to have a compelling presentation that secures a company’s future. Here are 5 Angel Investing Tips to achieve the most desirable outcome.
Tip 1: Time is Money
Although it is tempting to fill a pitch deck with details upon details, keep the pitch short and sweet. Angel investors will see hundreds of pitch decks a year and you only have around 5 minutes to convince them to join hands with you. Precision and concision matter most. To be an effective venture, a company must know exactly what product they are offering, what problem they are solving, every single detail of the process, and, most importantly, how to fit those vast concepts into one statement each. Cut down on things that can be incorporated elsewhere. For example, instead of dedicating a slide to the visual brand of the product, incorporate the visual brand into the pitch as a whole.
Tip 2: Lead with the Problem
It is best to lead with The Problem in your pitch deck. Introduce the potential angel investor to the market, assess the identified problem, and bring personal relatability into the equation. What is the market size, its growth characteristics, and segmentation? Who is the target audience and customer of your product? Have you considered the future? How will you scale to meet potential demand? These questions and more should be answered to assuage any doubts. Honesty is key.
Tip 3: The Meat of the Presentation: The Product
Directly following The Problem is the perfect opportunity to showcase the product or solution you are offering the angel investor. Provide an in-depth description, or even better, a demonstration, of the product. You believe what you can see. Highlight the unique features of your solution and how it differentiates from the competition. Specify exactly how your product is meeting the needs of the problem. Can a complete outsider of your company read through this portion and explain what the product is? The answer should be yes. This is perhaps the most critical part of the entire pitch deck.
Tip 4: Financial Precision
Now that the angel investor knows the problem and solution, it’s time to bring out the numbers. Demonstration of crucial financial models is key. What is the fundraising requirement? The current stage of development of the product? The financial projects: how long to break even? Is there a 5-Year plan? Discuss the potential risks and the available competition. This is the gritty, real part of the pitch deck. Not only should you have models that can answer these questions about the future, but there should also be quantitative data to back it up. What is the past, present, and future of the product? Success comes in raw numbers, arranged to tell your ideal narrative for victory.
Tip 5: Your Team is Everything
While the facts drive the forefront of the business narrative in the angel investor’s eyes, the heart of the matter is found in the team behind the product. Thoroughly explain the team and the company vision. Highlight the founders’ names, titles, and relevant previous experience; showcase advisors or mentors involved; accentuate the experience of key team members to give angel investors confidence in the team’s ability to execute the company’s mission and vision effectively.
Check out our Certified Business Angel Program or the European Super Angels Club and learn everything you need to know about these 5 Key Angel Investing Tips and much more!
