An Investor Pitch Document is an extremely important tool when you are seeking funding for your business. The purpose of the document is to get potential investors interested in your business and to convince them to invest money in your company. It may double up as a slide deck for your management team to present during any investor meetings that you manage to secure.
This document helps companies concisely communicate their business plan to potential investors. It provides potential investors with a snapshot of your company, its current status, and where you hope to take it in the future. It typically includes information about the problem that your business solves, your solution to that problem, your business model, your team, and your financial projections. It should highlight the key points of your business plan and be tailored to the specific interests of the investors you’re targeting.
You might have the best business idea in the world, but if you don’t know how to communicate it effectively in a pitch document, then you’re not going to get very far with potential investors. If you can create a strong Investor Pitch Document, you’ll have a much better chance of securing the funding you need to take your business to the next level.
Creating your Investor Pitch Document
When creating an Investor Pitch Document, it is important to remember that you only have a few minutes to capture the attention of potential investors. Therefore, make sure to focus on the most important aspects of your business and be clear and concise in your explanations.
There is no standard template for writing your document. However, to create a successful Investor Pitch Document, you’ll need to include information on the following topics:
- Front cover: You may wish to include a teaser image alongside your company name, logo, slogan, and contact information.
- The Problem: What problems are you solving with your products or services? Clearly articulate why this is an issue that people need you to help them with. Cover this from both a human and business perspective as appropriate. Be sure to include statistics or real-world examples to illustrate the scope of the problem.
- Your Solution: How do your products or services solve the problem and add value to your customers? Is there scope for enhancements or additional products? Showcase powerful concrete examples to demonstrate how your solution works and its benefit to your customers. Include any unique selling points that differentiate your company from anybody else.
- Market Size and Competition: Present the size of your target market, its projected future growth rate and its potential value to your company. Discuss how your business compares to your competitors. You should also identify any potential risks or challenges that could impact your success.
- Your Achievements: What progress have you made to date? This could include milestones such as launch date, number of users, significant customer wins, industry awards and any media coverage or press mentions. Provide examples of how these help your company’s ability to deliver its business plan.
- Business model: What is your purpose and how does your business make money? Is it based on product sales, subscriptions, advertising, or something else? Is your business sustainable over the long term?
- Financial projections: Present a financial summary of your business plan and KPIs, including current performance levels and future projections. Your analysis should outline the unit economics of the business, such as customer numbers, pricing and costs. This is a vital section of your pitch document, as investors will want to know that you have a solid business plan in place. Be realistic about your estimates and be prepared to answer questions about your financial projections.
- Risks and mitigation: What are the risks associated with your business, and how have you mitigated them? This is an important section to highlight any potential weaknesses in your business plan.
- Technology: Summarize your main technology systems and software applications, and how these differentiate you from the competition. Have you developed these in-house, and do you own these technologies, or are they licenced from third parties? Outline your future technology development plans and how they will enhance your business capabilities. Determine the likelihood of system failures occurring and their impact on your company’s ability to deliver its activities. Consider whether there are any existing technology solutions in the wider marketplace that also solve your customers’ problems and may compete against your products. Investors will assess whether your company is heavily dependent on other entities and whether your product is built within other people’s platforms. In such instances, other people’s actions have the potential to significantly disrupt your business plan.
- Marketing plan: This section should include a detailed marketing strategy, as well as budget estimates. How will you reach your target market and grow sales? What are your main existing routes to market, customer acquisition costs and current expenditure levels? Are you planning to target new customers or upsell other products to existing clients?
- Your Team: Who is on your team, what are their backgrounds and qualifications, and what is your working culture? Do they have the right knowledge, experience, balance of skills and capacity, and why are they the best people to deliver your business plan? Where relevant, outline the future key hires that are necessary to execute your strategy. You may also wish to list any advisors or partners who are helping to support your venture. What are the qualities and commitment levels of the/each founder, and will they have sufficient equity to feel properly motivated after factoring in the dilution impact of your fundraising requirements?
- The Investment Opportunity: Why are you seeking investment, and what will the money be used for? How much money do you need, and what is your expected return on investment? Include details of how much money you’ve raised so far and how much cash you are burning each month.
Having a well-crafted investor pitch document gives potential investors a clear understanding of your business and its potential. It shows that you have a clear plan and know what it takes to be successful. This can go a long way in convincing potential investors to invest in your company.
GrowCFO’s Fundraising Simulator
There are plenty of resources available to help you put together a strong pitch, and we can help you too!
The GrowCFO Fundraising Simulator provides you with essential first-hand CFO experience of leading and delivering an entire fundraising process from initial brainstorming through to deal completion.
The simulator is based on a real-life $12 million fundraise comprising equity and convertible debt for a high-growth company with a pre-money valuation of $60 million.
We have designed the simulator to help prepare you to confidently lead a range of fundraising deals so that you can thrive throughout the process and feel empowered to obtain the best available deal for your company.