Introduction
Investor expectations are critical to a startup’s success, especially in India where the competition is huge, intense and relentless. More often than not, Investors are spoiled with choices and are typically looking for innovative, scalable, and profitable business ideas.
As a founder, it is important to understand how investors approach a pitch deck and what they look for, to increase your chances of getting funded. This blog aims to provide a comprehensive understanding of investor expectations when preparing your pitch deck from an Indian private market standpoint.
Reliable insight
Reliable insight can only be gained from reliable market intelligence and that involves gathering and analyzing information about the market, competitors, and customers to make informed business decisions. While preparing a pitch deck, market intelligence can help you not only research and understand investors’ expectations, preferences, and other information, but also provide valuable insight into the larger market, customers, competitors, etc,. effectively enabling you to tailor your pitch based on the insights to meet their exact needs.
Market intelligence can be garnered by a combination of primary and secondary research. Primary research involves collecting data directly from investors through interviews, surveys, or focus groups. Secondary research involves analyzing publicly available information such as industry reports, competitor data, and news articles.
Investor Expectations
Investors are looking for startups that have the potential to grow rapidly and generate significant returns on investment. Therefore, your pitch deck should demonstrate a clear understanding of the market opportunity and how your startup will capitalize on it.
Additionally, generating interest from high profile investors can also be a significant factor in increasing the probability of success. High profile investors are experienced, successful, and well-connected individuals or organizations with access to vast networks of investors, advisors, and industry experts, which can be valuable resources for startups.
When a high profile investor expresses interest in a pitch deck, it can signal to other potential investors that the opportunity is worth considering. Additionally, the investor’s reputation and track record can provide credibility to the startup, which can increase the likelihood of securing funding.
Market Opportunity
Defining the market opportunity and explaining why your startup is well-positioned to capitalize on it is a great way to make Investors see evidence of a large and growing market that is underserved or ripe for disruption. You should provide data on market size, growth rate, key trends and drivers of growth in your market, such as demographic shifts, technological advancements, or changes in consumer behavior, gaps or unmet needs in the market that your startup can address.
Competitive Landscape
Investors want to know how your startup compares to existing competitors (both direct and indirect) in the market. Your pitch deck should provide an overview of the competitive landscape and explain how your startup differentiates itself. You should identify key competitors and provide data on their market share, revenue, valuation and growth rate, along with their strengths and weaknesses, such as their pricing, distribution channels, marketing strategies, and customer base.
Business Model
Investors want to understand how your startup plans to generate revenue and achieve profitability. Your pitch deck should clearly explain your business model and how it will create value for customers. You should provide data on key metrics such as customer acquisition cost, lifetime value, and gross margin.
The Team
Investors invest in people as much as they invest in ideas. Your pitch deck should introduce your team and highlight their relevant skills and experience. You should explain why your team is uniquely qualified to execute on the business plan and achieve success.
Financial Projections
Investors want to see evidence of a clear path to profitability and a return on investment. Your pitch deck should provide financial projections that demonstrate the potential for rapid growth and profitability. You should provide data on key metrics such as revenue, gross margin, and EBITDA.
Pitch deck checklist for Founders/Entrepreneurs:
- Introduction: Start with a brief introduction to the company and the problem it solves.
- Market Opportunity: Highlight the size of the market, target audience, and how the company’s solution is unique.
- Problem and Solution: Clearly explain the problem the company addresses and how it solves it.
- Product/Service: Provide an overview of the product/service and its features and benefits.
- Business Model: Explain how the company plans to generate revenue and the pricing strategy.
- Marketing and Sales: Detail the marketing and sales strategies and how the company plans to reach its target audience.
- Team: Introduce the team and their backgrounds and explain how they are qualified to execute the business plan.
- Financial Projections: Provide financial projections for the next 3-5 years and explain the assumptions behind them.
- Ask: Clearly state the ask, whether it’s funding, partnerships, or advice.
Conclusion
In summary, having 360° market intelligence and understanding investor expectations is critical to positioning your pitch deck to achieve the highest value proposition possible.
By using a scientific data and intelligence approach, you can gather the information needed to tailor your pitch to meet the investors’ needs. Your pitch deck should demonstrate a clear understanding of the market opportunity, competitive landscape, business model, team, and financial projections. By meeting these expectations, you can increase your chances of securing funding and achieving success in the Indian private market.
Disclaimer: The content provided in this article is for educational and informational purposes only and does not constitute professional financial advice. The opinions expressed herein are those of the author and do not necessarily reflect the views of the company or organization. Please consult a qualified financial professional prior to making any financial decisions.
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