You've built a product and have a little bit of traction, thus proving your business model. Now you need some capital to grow the business.
After poring through hundreds of startup pitch decks over the years and subsequently investing in a fair share, I'll go over what I consider to be essential slides to include.
I'll draw on Airbnb's angel round pitch deck in this piece. In 2008, in the depths of a severe recession, Airbnb raised $600k at a $3 million valuation. $100k invested in that round would be worth north of $1 billion today.
Airbnb's pitch deck was 14 pages long. Investors lose interest and focus reading through long pitch decks, so I would consider this to be about the comfortable limit.
1. What is the problem you're solving
"No easy way exists to book a room with a local or become a host".
There were three points, but this should've been at the top. It was a category defining problem to solve.
2. Solution to the problem
Self-evident in Airbnb's case. Their platform was already built and operating. It is difficult to impossible raising for something that hasn't been built, unless you have a strong track record.
3. Market size
Start with the market you can reasonably achieve locally, then build from there. Refrain from saying "we aim to take x% of the global market" because predicting anything 10 years out might as well be science fiction... Although in Airbnb's case it actually worked out!
4. Business model
Airbnb takes 10% of every transaction on their platform. Simple.
5. Competition
List your competitors and what they offer and show where you sit in that space.
6. Competitive advantage
Perhaps the most important slide of all. You must have some sort of outsized advantage or knowledge that is difficult to reproduce. If you don't you will be just another fish in the school.
7. Founding team
What's your background and how long have you known and worked together. Founder break-ups are a common cause of startup failure. This is important because you'll likely spend more time together building your business than with your spouses.
8. Your ask
What are you aiming to raise and what milestones do you expect to achieve.
See the rest of the airbnb angel round pitch deck. Password is airbnb.
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