Basics of a winning pitch deck for pre-seed startup

Fundraising is a common practice in business, especially for startups looking to bring new ideas to life. Pre-seed companies need funding primarily to build out their initial product, validate market demand, and gain early customer traction. Early-stage funding is critical because most startups lack money to cover hiring key team members, developing a prototype, marketing, and operational expenses. Often, they don’t have a product or even a minimum viable product (MVP). All they can do to persuade investors their startup is worth the risk is to sell them a “story” or, in other words, prepare a compelling seed funding neck.

• Focus on vision. Pre-seed decks emphasize the founder's vision and the problem they aim to solve, as they rarely have a ready product to showcase.

• Lack of financial data. Presentations of established businesses have detailed financial projections, and pre-seed decks usually highlight research, the founding team, and market potential instead of specific numbers.

• Proof of concept. Later-stage decks include growth metrics and pre-seed decks mainly show prototypes, early user feedback, or mockups.

So, imagine you are a pre-seed startup founder with almost no achievements to boast about for now. But you are sure your idea will definitely take off. How to use storytelling to win the investor’s attention? Tell them a so-called “customer’s tale!” This is one of the powerful storytelling techniques. Let’s consider how a startup that creates apps for busy parents would shape its pre-seed business pitch:

• Define your customer. Meet Sarah, a working mom managing her hectic schedule.

• Set the scene. Sarah’s mornings are chaotic as she struggles with work and kids.

• Highlight the problem. She often misses events or double-books, and it leads to frustration.

• Present your solution. The Family Scheduler app helps her organize everything in one place.

• Show the transformation. Now, Sarah does not forget things and is never late.

• Create an emotional connection. Imagine her relief as she no longer feels stressed about schedules.

• End with a call to action. With your investment, we can help more parents like Sarah improve their lives.

It is just one example of how you can explain how your idea brings value to customers.

Even if you opt for a “tale” to explain your business idea to potential investors, you must select a strong pitch deck template with slides that carry relevant information. Consider this logical structure:

• Cover. Start with a striking image and a brief statement that captures the essence of your startup.

• Problem. Clearly explain the problem you’re addressing. Who faces it? Why is it important? How is it currently being solved?

• Solution. Describe your solution and how it helps users. Why is it timely and relevant?

• Why now. Highlight the current market trends or shifts that make your solution particularly relevant at this moment.

• Market validation. Confirm there's a significant and growing market for your solution. Specify Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM).

• Business model. Explain how you plan to monetize your solution. What is your revenue model?

• Financials. Provide a snapshot of your financial forecast. Include key metrics such as projected revenue, expenses, and profitability.

• Competitors. Discuss the competitive landscape. What differentiates you from existing competitors or alternative solutions?

• Go-to-market strategy. Outline your customer acquisition approach and channels. Add early traction data if available.

• Team. Tell about your team qualifications. What makes them suited to execute this project?

• The ask. Clearly specify what funding you are looking for.

You will find a lot of traditional pitch deck design tips, as well as hundreds of mockups. Try to think broader when creating your elevator pitch.

• Experiment. Don't follow the same old template. Find unique layouts, visuals, and storytelling techniques to make your pitch stand out.

• Show, don't tell. Avoid a dry description of your product or service; demonstrate its value through compelling visuals or product demos.

• Inject personality. Investors want to see passion and enthusiasm for your venture.

• Add humor. A well-placed joke can help break the ice, but always remember about limits.

• Be authentic. Investors can spot a fake from a mile away. Be genuine and transparent in your presentation.

• Seek feedback. Get feedback from mentors, advisors, and other entrepreneurs to improve your pitch deck.

• Be ready for failure. Don't be afraid to discuss past failures. Demonstrate your determination to continue.

Sometimes, you can overdo it, trying to create the best pitch ever. So, avoid these things:

• Information overload. Keep your slides laconic and clear - 6-8 lines or 30 words per slide.

• Boring narratives. A monotone presentation is likely to fail. Engage your audience with a captivating story.

• Visual overload. Don’t clutter your slides with low-quality images. Let visuals support your message, not distract from it.

• Overconfidence or underselling. Be honest about your progress and challenges. Don't oversell your product or downplay its limitations.

Remember, you are pitching to people. Build a personal connection with your investors and make them believe in your vision. Always use true numbers and be ready to prove them.

Generally, the average investment in a pre-seed round is between $500,000 and $1M. However, some startups manage to nail it. Here is such an example:

Squadtrip is a SaaS platform that makes planning group trips easier. It helps friends, family, or colleagues coordinate travel by providing tools for sharing itineraries, tracking costs, and making decisions together. The goal is to simplify the planning process so everyone can enjoy their trip without the hassle. Squadtrip had its pre-seed funding round in 2021. The founders could effectively communicate a clear vision and opportunity in the group travel market and managed to raise $1.5 million!

Do not leave your pre-seed pitch deck to chance. Use the above tips to refine and improve your investor presentation and multiply your chances of getting noticed. Struggle to do it on your own? Experts from DreamX are always ready to come to the rescue and provide professional advice. Our skilled designers have the skills and multi-industry experience to craft a winning pitch for you. Get in touch for more details!