Pitch Deck

A pitch deck is a brief presentation, often created using PowerPoint or similar software, designed to provide potential investors, clients, or partners with a quick overview of a business opportunity, product, or project.

Purpose of a Pitch Deck

The main purpose of a pitch deck is to communicate the value proposition of a business idea clearly and persuasively. This tool is crucial during fundraising efforts or when seeking collaboration, as it helps to:

• Attract investment by outlining business potential
• Convince stakeholders of market viability
• Showcase the team and their credentials
• Explain the business model and revenue streams

Key Components of a Pitch Deck

A well-structured pitch deck typically includes several key components:

1. Introduction: An overview of the company and its mission.
2. Problem Statement: The specific problem the business aims to solve.
3. Solution: Explanation of the product or service offered as a solution.
4. Market Opportunity: Analysis of the market size and target audience.
5. Business Model: Description of how the business intends to make money.
6. Traction: Evidence of progress, such as sales, partnerships, or user metrics.
7. Financial Projections: Forecast of revenues, expenses, and profits over time.
8. Team: Introductions to key team members and their backgrounds.
9. Funding Request: The amount of funding sought and how it will be used.

Example of a Pitch Deck

Consider a tech startup developing an innovative app for fitness tracking. Their pitch deck might include:

• Introduction: “FitTrack, making fitness personalized.”
• Problem Statement: “Many fitness apps are generic and do not cater to individual needs.”
• Solution: “FitTrack provides AI-driven personalized workout plans based on user data.”
• Market Opportunity: “The global fitness app market is projected to grow to $15 billion by 2025.”
• Business Model: “Subscription-based revenue model offering a free trial period.”
• Traction: “10,000 downloads and 500 active subscribers in the first month.”
• Financial Projections: “Projected revenue of $1 million in Year 1, growing to $5 million by Year 3.”
• Team: “Led by a former fitness coach and a software engineer with 10 years of experience.”
• Funding Request: “$500,000 to enhance marketing and product development.”

Financial Calculations in a Pitch Deck

When presenting financial projections, it’s essential to include calculations that demonstrate growth and viability. For instance, if the startup expects to grow its user base:

• Year 1: 10,000 downloads, converting 5% to subscribers = 500 subscribers
• Year 2: 20,000 downloads, converting 7% to subscribers = 1,400 subscribers
• Year 3: 30,000 downloads, converting 10% to subscribers = 3,000 subscribers

To calculate projected revenue over three years, if the subscription fee is $10 per month:

• Year 1 Revenue: 500 subscribers * $10 * 12 months = $60,000
• Year 2 Revenue: 1,400 subscribers * $10 * 12 months = $168,000
• Year 3 Revenue: 3,000 subscribers * $10 * 12 months = $360,000

The pitch deck effectively communicates the startup’s potential, making it a critical tool for securing funding and support.