This is a presentation I prepared as part of the 2016 San Diego Startup Week on how to create an effective fundraising pitch deck for early stage companies.

2. STARTUP
WEEK
San Diego Startup Week (SDSW)
is the region’s premier catalyst for
innovation, creativity &
entrepreneurialism.

4. Big Thank You to Our 2016 Sponsors

5. Crafting a Killer Pitch Deck
Presented by:
Peter Harris, University Growth Fund
Hosted by:
EvoNexus

6. Quick Intro
 Partner at University Growth Fund
 9 Years in VC
 International Consultant

7. 1. The VC Mindset
How does a VC think about your company? OR what should you be thinking
about as you prepare your pitch.
 Risk, Reward, & Valuation
 Sending the Right Signal
 FOMO
 Stories

8. 1.1 Risk, Reward & Valuation
Probability of
“Success”
Company Progress/Traction
Valuation
100%
0%

9. 1.2 Signaling
 Asymmetric Information Problem
 Both sides dependent on signals
 Everything you do sends a signal
of quality level
 A little like dating – lots of mixed
signals

10. ”About 15 [deals each
year] will generate 95%
of all the economic
returns [for that
vintage].”
– Marc Andreessen
1.3 FOMO

11. 1.3 Stories

12. 2. Objectives of Your Deck
Get to meeting #2, or get a quick no…
Your decks needs to:
 Communicate the inevitability of your success
 Create excitement and FOMO
 Tell your story

14. 3. Structuring Your Pitch
Pain (What) | Solution (Why Now) | Strategy/Traction (Why You)

15. 3. Structuring Your Pitch
Pain (What) | Solution (Why Now) | Strategy/Traction (Why You)
Early
Growth
Late

16. 3. Structuring your Pitch
 Market Pain
 Solution & Vision
 Competition
 Team
 Strategy & Traction
 Projections
 Ask

17. 3.1 Structure: Market Pain
“We were looking for a pain so big you needed a tourniquet. If you didn’t get it, you
were going to die.” - Mike Maples (Floodgate)
Objective Guidance Pitfalls
 Too much jargon
 Too much data
 No clear
connection to
solution
Help the investor
feel the pain of the
customer/market
 Show the pain is deep
and wide (big market)
 Explain why it happened
 Make sure the pain lines
up with your solution

18. 3.1 Structure: Market Pain
Examples
 Describe the scenario
 Combine data with
anecdotes
 Make comparisons
 Show examples
Alterna ve Compe ve
Comparison
$$$$ $$
MicroFunding Inc.
“I have worked with different banks and credit unions
but no one was as easy as MicroFunding”
Ben Lopez
Customer #1
“Other funding resources are just clumsy, they make it
hard for you to get a long when in the long run they are
benefi ng from your business. Not the case at
MicroFunding”
John James
Customer #2
XYZ is a Large
Fragmented Market

19. 3.2 Structure: Solution & Vision
“Do you hear that Mr. Anderson? That is the sound of inevitability”
- Agent Smith, The Matrix
Objective Guidance Pitfalls
 Solution is too
generic
 “Solution” is not
convincing
Show why your
solution is
inevitable
 Show how your solution
solves the pain correctly
 Show how your solution
is unique

20. 3.2 Structure: Solution & Vision
Examples
 Product Demos
 Clear statements
 Diagrams
 Visualizations

21. 3.3 Structure: Competition
“Second place is just the first place loser” – Dale Earnhart
Objective Guidance Pitfalls
 “No Competition”
 Don’t understand
competition
 No advantage
Show relevant
competitive
advantage
 Show me the moat!
 Better understanding of
customer

22. 3.3 Structure: Competition
Examples
 Strategy Map
 Thoughtful data
 Examples of
product
Alterna ve Compe ve
Comparison
$$$$ $$
0%
25%
50%
75%
100%
0 3 6 9 12 15
PERCENTOFCLIENTSACTIVE
MONTHS
BEST IN CLASS RETENTION RATES WITHIN THE
INDUSTRY
LA/OC 2 2014
LA/OC 1 2015
LA/OC 2 2015
LA/OC 1 2016
AVERAGE
COMPANY BETA
58% Better Retention Rate

23. 3.4 Structure: Team
"Success in almost any field depends more on energy and drive than it does on
intelligence. This explains why we have so many stupid leaders." – Sloan Wilson
Objective Guidance Pitfalls
 Too much
irrelevant info
 Not impressive
 Unprofessional
photos
Why are you (and
your team) the
right people to pull
this off?
 Experience
 Expertise
 Execution
 Quality

24. 3.4 Structure: Team
Examples
 Pictures and Logos
 No great logos?
Show me results!
 Advisors, board
members?

25. 3.5 Structure: Strategy & Traction
“Almost every failed startup has a product. What failed startups don’t have are enough
customers.” ― Gabriel Weinberg, Traction: A Startup Guide to Getting Customers
Objective Guidance Pitfalls
 Too many
assumptions
 No data, or
incorrect data
Describe the
strategy and show
that it’s working!
 The strategy should
align with pain
 Provide data that shows
strategy is working
 Data trumps anecdotes

26. 3.5 Structure: Strategy & Traction
Examples
 Describe the strategy
 Show how its working
 Charts, logos, pipeline

27. 3.6 Structure: Projections
“Hockey Stick Anyone?”
Objective Guidance Pitfalls
 Chart without info
 Unrealistic
assumptions
 1% of the market
Show the upside
opportunity,
demonstrate level
of realism
 Show that investor’s
expected returns are
possible
 Use realistic
assumptions

28. 3.6 Structure: Projections
Examples
 Show more than
revenue if possible
 Include assumptions
 Keep it simple
 Actuals + Projections
are awesome

29. 3.7 Structure: The Ask
“Only one thing counts in this life: Get them to sign on the line which is dotted. You
hear me? … A-B-C. A-Always, B-Be, C-Closing. Always be closing. ALWAYS BE
CLOSING.” – Glengarry Glen Ross
Objective Guidance Pitfalls
 Too much
information
 Setting valuation
 Uncommitted
investors
How much, why,
and from where
 Security
 Amount of money needed
 Use of proceeds
 Key milestones
 Committed investors

30. 3.7 Structure: The Ask
Examples
 Security, Amount
 Prior rounds
 Milestones
 Simple
 Not absolutely
necessary
Dec 2012
$1.4M Seed Round
Kickstarter + Anders + Angels
June 2013
$6M Series A
Win the race to
own this face

31. 4. Closing Tips
 Craft a good looking deck
 Don’t waste time on obvious stuff
 Educate
 Tell a Story
 Use few words
 Know your audience (objections)

32. QUESTIONS?
Peter Harris | @thevcstudent