Published in: Business Strategy

Investor Presentation: What to Do and What Not to Do (For Startups Seeking Funding)

Author Ash

Published on: October 18, 2024

An investor presentation is a critical tool for any startup looking to secure funding. At Startup73, we specialize in helping entrepreneurs craft compelling, visually appealing pitch decks that resonate with investors. An effective investor presentation can make the difference between closing a deal or losing an opportunity, and knowing how to approach it strategically is key.

In this article, we will walk through what to do and what not to do when creating and delivering an investor presentation. These tips will be highly relevant for startups looking to capture the attention of angel investors or venture capitalists, especially if you’re using one of our Startup73 custom pitch decks.

What to Do in an Investor Presentation

1. Tell a Compelling Story

Do: Start with a powerful, relatable story. Investors want to know why your startup exists and what problem you are solving. This emotional connection sets the stage for the rest of your pitch, especially when trying to stand out in competitive sectors.

At Startup73, we ensure that every deck begins with a story that draws investors in from the first slide, setting the tone for a high-impact presentation.

Example: A startup in the health tech space could start with a personal anecdote about how a family member struggled with managing their health, showing how the product will change lives.

2. Focus on Market Opportunity

Do: Show investors the size of the opportunity. Clearly define your target market, its size, and the problem’s scope. Investors want to know that you are addressing a large enough and growing market.

Our custom pitch decks include thorough market analysis, ensuring you have clear data visualizations that demonstrate the scale and potential of your opportunity.

Example: “The wellness market is growing at 10% year-over-year, and our product addresses a $50 billion unmet need within that market.”

3. Demonstrate Traction

Do: Investors need to see that your business is gaining momentum. Showcase your traction—whether it’s revenue, user growth, partnerships, or product development milestones. Data-backed evidence of progress gives confidence to investors.

We help our clients at Startup73 include the right data points in their decks to present a compelling case for investment.

Example: “We have signed two major corporate clients, each representing $100,000 in annual revenue, and our user base has grown by 200% in the last six months.”

4. Make the Financial Ask Clear

Do: Be transparent about how much money you are raising and what you will use it for. Investors don’t want to guess. Break down your use of funds—this shows you have a clear plan and gives investors confidence in your financial strategy.

Example: “We are seeking $1.5 million to expand our marketing efforts and hire key team members in product development. In return, we are offering 15% equity.”

5. Focus on Visuals

Do: Keep your slides clean, visually appealing, and to the point. Investors typically don’t have the time to sift through text-heavy slides. Use visuals like graphs, icons, and simple text to convey your points quickly.

At Startup73, we focus on creating custom visuals that simplify complex ideas, making it easier for investors to digest key information without overwhelming them.

What Not to Do in an Investor Presentation

1. Don’t Ignore Your Competitors

Don’t: Every startup has competition. Avoid the trap of thinking your idea is so unique that there is no competition. Investors will know the landscape, and if you ignore competitors, you may appear unprepared.

Example of a Mistake: “We don’t have any competitors—no one else is doing what we are.”
Better: “While Company A and Company B offer similar products, our competitive advantage is X, which helps us target an under-served segment of the market.”

2. Don’t Make Unsubstantiated Claims

Don’t: Avoid making grand, unverified claims about your future success. Investors want realistic and achievable milestones. Making claims like “We’ll be the next unicorn in two years” can discredit your presentation if there’s no data to support it.

Example of a Mistake: “We will generate $10 million in revenue within the first year.”
Better: “Based on our current user growth and customer acquisition rate, we project reaching $1 million in revenue by the end of year two.”

3. Don’t Overload with Technical Jargon

Don’t: Investors need to understand what you do, but they don’t need to know every technical detail. Overloading them with jargon can confuse and disengage them.

Example of a Mistake: “Our SaaS platform uses machine learning algorithms to optimize data-driven insights for operational efficiency.”
Better: “We use advanced technology to help companies reduce costs and improve operational efficiency, with proven results.”

4. Don’t Skip the Financial Details

Don’t: Skipping the financials, or being vague about them, can be a red flag. Investors want to see detailed financial projections and understand your revenue streams, costs, and profitability timeline.

Example of a Mistake: “We’ll be profitable soon, we just need more funding.”
Better: “We expect to reach profitability in 18 months, with a 30% profit margin by the third year, based on our current growth trajectory.”

5. Don’t Overwhelm with Too Many Slides

Don’t: Keep your presentation concise. Aim for 10-15 slides that cover the essentials. Too many slides can overwhelm investors, while too few might leave out critical information.

At Startup73, we help streamline your pitch deck to ensure it’s concise, professional, and delivers maximum impact in a minimal time frame.

Best Practices for Startup Investor Presentations

1. Storytelling: Start with a narrative that draws in the audience emotionally.
2. Market Data: Show the market size and growth potential clearly with visual charts.
3. Traction: Display real metrics that demonstrate progress and market fit.
4. Revenue Model: Present a clear, scalable revenue model with key financial projections.
5. Strong Visuals: Ensure your slides are simple, visually appealing, and to the point.

Conclusion

Creating a winning investor presentation is essential for securing funding, especially in competitive markets. At Startup73, we specialize in helping startups craft custom pitch decks that stand out to investors. By focusing on what to do—and avoiding common mistakes—you will be better prepared to present a compelling case for investment and take your startup to the next level.

If you need help with your investor presentation or pitch deck, explore our custom pitch deck services at Startup73 to get started. We also offer free templates and expert advice to help you nail your next pitch!