StartupTalky

Tag: Funding in Startup

  • Top 10 Important Elements to Include in Your Pitch Deck

    The world is witnessing a huge rise in the number of startups in recent years. Many youngsters are showing interest in developing innovative ideas and starting their own businesses. Thanks to affordable technology for feeding ideas and options to those young entrepreneurs to shape their dreams.

    The first and foremost thing that a startup requires is a fund. However creative the idea is and however talented the founder is, the startup will never take a step further without funds. So, how can a startup raise funds? There are various investors and venture capitalists who are ready to fund startups with excellent business ideas and a knowledgeable team.

    The primary thing that the founders should do is impress the investors with the pitch. The pitch deck should contain such things that should convince the funders to release money from their pockets. Let us know more about the pitch deck and the elements it should carry most importantly in it.

    What is a Pitch Deck?
    Important elements to be included in your Pitch Deck

    1. Product
    2. Problems
    3. Solution
    4. Funding and Financials
    5. Revenue Model
    6. Traction
    7. Target Market
    8. Competitors
    9. Team
    10. Exit Strategy

    Pitch Deck Tips

    What is a Pitch Deck?

    A Pitch Deck is a presentation that gives an overview of the startup to the investors. It should contain all important information about our business like its nature, demand in the market, future plans, strategies, etc. Informative and short pitches are the ones that gain the interest of investors.

    Initially, Pitch Deck serves to be the face of a startup and it is how we introduce our company to the financial backers. The first impression it creates stands out to be crucial. So certain things that cultivate trust in the survival, success and future of your startup have to be considered and included while getting the pitch ready.

    Important elements to be included in your Pitch Deck

    The following article covers the important requirements for a pitch deck:

    Product

    If yours is a product-based startup, then take your product to the investors. Get them to know your product personally. Sometimes, your product might speak more than your words. Let them use your product and know it well. Even if your product is in the development or underdeveloped stage, create some samples or models to present to the investors. The visual presentation would give you an added advantage during the pitching.

    Problems

    Give a brief explanation of the problems you are facing as a business. Explain where the problem exists, the reason for its existence, where future issues can arise and so on. A simple narration with a relatable example could help investors understand the problems better. This might gain you a positive note on your in-depth business knowledge and a solution to the problem. Even if the investors fail to invest in your startup, their experienced advice could be of great help in the future.

    Solution

    Moz Solutions in Pitch Deck
    Moz Solutions in Pitch Deck

    Providing solutions to the problems can cause you some good during the pitch. If identifying the problem shows your understanding of the business then solutions show the knowledge you possess over it. Explain to them how you are going to solve the problem, how it is going to impact the business, the reason for choosing this particular solution, etc. If the solution or the strategy is adopted from a predecessor, then explain how they made it happen. Also, be prepared to counter any questions to be shot against you by the investors.

    Funding and Financials

    Investors won’t grant funds without you asking for it. You need to quote the required funding amount, its purpose and how it will be utilized, and the return the investors would get from it. If you are an existing startup, then you need to provide your past financials in a simple chart or graph along with the above-said details. It should contain spending, areas of your spending, profits, revenue, etc.

    List of Top 25 Companies Pitch Deck
    The best pitch decks tell the real story about your brand or company. Read to know more about the top companies’ pitch decks.
    StartupTalkyGorish Dua

    Revenue Model

    How do you make your revenue? An investor would be most interested to know your revenue model. You can use the information from the target market slide to assist you in briefing the revenue model. Explain the demand for your product or service in the market and how it would pay you back. Dissect the cost and profit from your sales and give brief reasoning for your pricing strategy. This is the other most important element to be included in your pitch deck.

    Traction

    Moz Ptchdeck 

    Project your company’s growth with the current market situation for a foreseeing future. If you are an already existing startup then elaborate your growth trajectory in the pitch deck. You can also mention the benchmarks you have created or the milestones achieved in the past. It can be anything in terms of profit, revenue, sales, awards, etc. This is done to incite confidence in the investors and reduce the fear of risking their finances.

    Target Market

    Sickweather Pitch Deck showing Target Market
    Sickweather Pitch Deck showing Target Market

    Every company, product or service-based, has a target market or customers. That particular targeted area should form part of your pitch deck. When describing this segment, you can include the nature or category of your market, the current and future demand, the impact of your competitors, and so forth. Investors would like to know where the major focus of your startup would be. They might judge your company’s long-term stability with the market you are about to target.

    Competitors

    One of the most important elements to be included in a pitch deck is the competition. Knowing the competition helps you to know about your business well. Since every action of the competitor might have a direct impact on your success and survival, understand your competition well. Not knowing them is a result of ignorance and improper market study. No investor would be ready to invest even a dime in such a startup. So, include a detailed study on your competitors in your pitch deck.

    Team

    Buffer Team in Pitch Deck
    Buffer Team in Pitch Deck

    A team is the core of any business. However great your planning and strategies might be, you need a great team to put everything into action. Assigning the roles to your team, and choosing the right person for the right task, is highly important. Give the investors a clear map of your management and operations team and their expertise.

    Exit Strategy

    Every investor wanted to know the exit strategy when the business gets transformed into a larger one, like going public, in the future. They would like to know your plans for the future and expansion strategies, or in simple terms, where the business will be in the next five or ten years. If you are planning on something like getting acquired, divesting your investments, etc. explain why it is the best choice for the investors.

    Conclusion

    The above are some of the key elements that should become a part of your pitch deck. They assist you in creating an imposing pitch presentation that in turn helps you secure funds and investors for your startup.

    FAQs

    What is a pitch deck?

    A Pitch Deck is a presentation that gives an overview of the startup to the investors.

    What are the important elements to be included in your Pitch Deck?

    10 important elements to be included in your pitch deck are:

    • Product
    • Problems
    • Solution
    • Funding and Financials
    • Revenue Model
    • Traction
    • Target Market
    • Competitors
    • Team
    • Exit Strategy

    Why Is Pitch Deck Important?

    Pitch deck is the first communication means for entrepreneurs to reach out to potential investors.

  • How to Fund and Grow an E-commerce Platform?

    The article is contributed By Prateek Ruhail, CEO and  Co-Founder of Vanity Wagon.

    In the recent past, a lot of businesses have gone digital incalculably. This was accelerated by the pandemic which curtailed individuals’ ability to visit physical marketplaces, and they were instead forced to shop from e-commerce websites. And now, the shoppers include individuals from all walks of life, a medley of cities and different income statuses. A report revealed that from April-May 2020, there was an 11% increase in first-time online shoppers. The e-commerce market in the country is exploding and is set to grow at a 30% compound annual growth rate in the next 5 years, serving 300-350 million shoppers in the next 3 years. This growth in e-commerce businesses has warranted a deeper understanding of how to fund and grow such a platform.

    ECommerce Funding

    Financials and cash-flow is the toughest problem to navigate when starting your own e-commerce business. It’s extremely pertinent to clearly chalk out a plan and figure out exactly what you need the funds for. This money is usually used to grow, cover expenses (marketing and operational) and for inventory costs.

    How to Get Funds for Your ECommerce Business?

    There are numerous ways to fund your business. The most common of these are using your personal savings, bootstrapping- asking family and friends for help, and crowdfunding – collecting funds from the public. There are also grants- obtaining money from a public body, equity financing- giving up equity for a cash investment, debt financing- selling debt instruments like bonds to investors, revenue-share financing- in the form of royalties, and bank loans. Each company has its own unique business model due to which some of these methods might work better as compared to others. Even at different stages of the business’ growth- different methods might be appropriate.

    Investors’ Alignment to Your Business Objectives

    Not every investor fits perfectly into the puzzle. If you have an investor that doesn’t understand the overall vision of the company, and does not agree on a strategy, it can actually be counterproductive to have them on board. Thus, it is extremely important that you and your investors align on the objectives and plans of action for the company.

    Attract Investors To Your Business | Startup Fundraising
    Looking for investors for your startup or raise funds for your business? Check out this post to know how to attract investors to fund your business.
    StartupTalkyParnas Ghosh

    Growing Your ECommerce Platform

    After starting the business and getting the infrastructure in place, the funds are used to grow the company. There are several growth strategies that can be implemented to maximise profits-

    1. Affiliate marketing – Affiliate marketing is a business strategy whereby you can increase your business reach by allowing social media accounts and websites to market your products and show advertisements for a specific percentage of your sales. This exposes your brand to a larger audience, thereby growing it.
    2. Target audience – Identifying your target audience is pertinent to understanding the demographics and trends among those you are selling to and modify your marketing and operational strategy accordingly. If your product or marketing is irrelevant to your target, there is no point.
    3. Repeated business – Usually, the customer acquisition cost is extremely high, but converting an existing customer into a repeated buyer is easier and also increases sales. Luring customers back in using tactics like offers, discounts, bundles, customised coupons, and maintaining a good relationship with them is likely to grow your business.
    4. Market basket analysis – Enticing customers to purchase commodities that are linked to one another through market basket analysis is an excellent way to grow your business. For example, if a customer is buying clothes, there can be options of accessories that go with the whole look. Or, if a customer is buying chips, there should be a bundled with different recommended dips etc.
    5. Upselling products – Upselling refers to getting customers to purchase high-end and more expensive products instead of their cheaper alternatives. This can be done through things like ‘Amazon’s choice’ or even comparing different products so that the advantages are easily recognisable.
    6. Creating awareness – If your e-commerce business can solve problems, then it is extremely important to create awareness and use appropriate marketing tools to do so. In today’s day and age, customers do extensive research before settling on a purchase hence, it is important that they are aware of the product you have and the problem you solve with the product.
    7. Influencers – A good way to create awareness in the present day is through influencers. These influencers usually have thousands of followers who look up to them for advice and recommendations. The sales you get from these influencers should make up for the fee you pay them.

    Thus, adopting the right strategies for funding and growing your e-commerce platform is key to having a profitable business.

  • 10 Characteristics That Attract Investors to Invest in Your Startups

    The article is contributed by Mr. Saarthak Bakshi, Chief Executive Officer (CEO) of the International Fertility Centre.

    Mr. Saarthak Bakshi is recognized as Forbes 30 under 30 ASIA, 2017 for HealthCare and Science. He is known for his persona as an engineer, an entrepreneur and a social worker. He flourished his career by working with reputed companies – Infosys and Ernst & Young – as a Software Engineer and IT Risk and Assurance Analyst respectively. He soon realized that he has an inborn passion for entrepreneurship and went on to launch a slew of ventures including IFC.

    As we know that starting a business can be expensive. We may have less cash in hand to get started without some outside help but sometimes, it is important and beneficial to have investors in your business. It gives you a sort of security. Investors in your business are different from lenders. Instead of monthly repayment like lenders, investors give you money in exchange for ownership of part of your business. Apart from money they can also be an important source of business-related advice and strong business networks, which you can utilize for your own business. Therefore, it is important to draw the attention of the investors to make their decision firm to invest in your business. Most important thing is that investors want to see a return on their investment. They make money by putting their money into the growing business. Therefore, how to woo them plays a crucial role in the success of any startup. It is not necessary that every investor looks for the same things but still there are chances of commonality.

    So, here are ten points to make the investors interested in your startup.

    1. A passionate business proposal
    2. A market-oriented deal
    3. Demonstrate your success rate
    4. Competitive advantages
    5. Have an emotional approach with logic
    6. A strong team
    7. Experience
    8. The investment structures
    9. A scalable model
    10. Future vision and planning

    A passionate business proposal

    Having a passion for their startup is easy to be found in new business founders.  But how your business will help the investors to gain profit is a deciding factor for their interest. They want your confidence justifying that it is an improvement over existing products or is a new way to address an old problem. You should demonstrate your firm belief and confidence in your business.

    A market-oriented deal

    It is one of the important points that to pitch potential investors, familiarity with the market is generally the safest option. Startup investors look for opportunities in sectors that fit their interests and expertise. They already have an idea of how businesses become profitable in this industry and what it will take for your business to yield a return on its investment. Thereafter reviewing and organizing your proposal, go for the market research to pitch in a suitable investor.

    Demonstrate your success rate

    A track record of previous success is critical to attracting the interest of investors who can take your venture into your business. Most of the time successful startups are a rarity, therefore it becomes difficult for inexperienced entrepreneurs to convince the investors to lend their capital. But, if your business can captivate the market and the customers and if your track records give a guarantee of success, then you have a fair chance.

    Competitive advantages

    Most of the time investors look for satisfactory answers to the following question: What makes your product/service unique? There must be something about your product that sets it apart. If your product and you’re the first to the market, then it’s the best thing. However, most startups are entering existing marketplaces. What then makes you different? And how affordable it is in comparison to the already existing quality?

    Have an emotional approach with logic

    Whenever you are pitching with your investor, you must hit them on both emotional and business fronts. Include a story with your plan. Make it appeal to real-life scenarios and how your idea will solve the problem. At the end of the day, investors look for founders who have passion, motive, and experience to create a profitable as well as a sustainable business. It is not a matter of only ideas or concepts, the investors look to invest in you and your team and their ability to successfully execute your business plan.

    A strong team

    If you have a competent team, you have the attention of the investors. Show them that your team is intelligent, strategic, successful and follows strong financial discipline. Show them the qualifications of each member and what they bring to the business. Having a team that is knowledgeable, willing to learn and can handle multi-responsibilities are all positive traits that will impress your investors.

    Experience

    Experience can play a convincing role in winning over investors. If your team members have prior experience in their respective fields or have been involved with a startup in the past, it shows that you and your team have knowledge of your market and are tenacious enough to complete goals.

    The investment structures

    You should have a clear business structure in place that allows the investors to consider it and buy it. You should also plan for how the investment will work. In that plan, you must include, a clear valuation for your business and a stockholder’s agreement that clearly sets out the rights of all the owners.

    How Crowdfunding Works in India for Startups and Businesses?
    Crowdfunding is a great way to raise funds for your startup and small businesses. Want to know how it works and its benefits. Check out.
    StartupTalkyAshwini

    A scalable model

    Build your business with scalability in mind. Most investors expect a return on what they are investing. Therefore, scalability is a major factor for successful startups and a great attraction to investors. Basically, scaling is known as adding revenue at a rapid rate while adding resources incrementally. The amount of resources required doesn’t change as your customer base increases, driving consistent growth and improving profit margins. Therefore, the plan of your faster revenue, makes the investor consider your startup dearly.

    Future vision and planning

    Give your investors a picture of your potential startup, that is where your company will be in the future and make them optimistic that you have the credibility to achieve your goals. Plan along the lines of where is your startup going? How do you see your startup in the coming years? Do you plan for the worldwide market? Etc.

    Conclusion

    Attracting startup investors to your company is necessary for your business. Therefore, you must put all the pieces in place to show that partnering with your business would be a smart move for them. Highlight the best parts of your startup and discuss your challenges with them openly. Investors will get on board when you demonstrate your best.