SlideMagic Blog

Yesterday I posted about a way to visualize a complex comparison (a hedge fund). Sometimes thought, the best things is just to simplify. “Here is a competitive landscape. These guys are bigger. These guys use a wholesale model (we are retail). These focus mainly on Asia. These market to younger consumers.” Interesting for PhD students that study your market, too much information for a first pitch to a potential investor. Aggregate things up to a simple grouping of competitors and complicate things in later discussions.

How do you showcase your application in a 20 minute pitch? Doing a full, live demo is hardly ever an option:

• Murphy’s Law will strike, and your Internet connection will break down, and if not, another technical issue will hit you
• Some aspects of your app are interesting to show, others are boring and time consuming (loggin in, entering some data, etc.)
• It is hard to stay focussed and on script in a live application, before you know you have lost yourself in an interesting feature and spent far too much time on your demo.

In a short VC pitch, doing a live demo is likely to take the energy and momentum out of our talk. The other solution is showing a bunch of screen shots. But how can we transform a series of uninspiring screen shots into an exciting use case of your product? Some steps to consider:

• Base the whole section on a story. The best stories are real: find an actual customer, disguise everything so it is impossible to expose private information and build the entire screen shot demo on her case.
• Alternate between regular visuals and screen shots. Use a map to show locations, use images taken in the street to give things a sense of place.
• When using screen shots, crop out all the clutter that is irrelevant: operating system window bars, icons, browser navigations and put huge arrows or circles to focus the viewer attention to what you want to see them. Use big text to emphasise what you are doing and why it is so great (“We open an account in just one click”).
• Throughout your story, stay consistent: the same user, the same location, the same issue she is trying to solve.

I recently answered a Quora question on what is the best way to get started with a VC/investor presentation. The answer applies to all presentations, not just investor presentations. Obviously, this is my preferred approach, yours might be different.

I use multiple approaches at the same time, in parallel:

• Scribble a story line on paper, or an iPad mind mapping app (iThoughtsHD is good)

• (Just because I like it) design a really beautiful cover page with a nice image and the right look and feel of the deck.

• Dive straight in and try to craft that ultimate killer slide, the one that makes the most important point in your presentation and finish it all the way. BANG.

Then I continue to iterate: refining the story line, adding a chart here and there. I take lots of breaks in the entire process, designing a good deck can take a lapse time of about 2 weeks. This ensures that your creative energy stays fresh. Presentations made at gun point at 3AM before the 9AM meeting never look really good.

I will be crossing the Mediterranean Sea and talking about designing a good VC/investor pitch presentation in Barcelona. It would be great to shake hands with readers in Spain.

The event is scheduled for October 3, at 19:00. The location still has to be finalised, maybe the campus of the IESE business school, or another central Barcelona location. The presentation will be in English, and is free of charge. You can sign up for the event here.

Thank you Conor Neill for connecting me to the Barcelona startup community. Thank you John  and Mel Kots for this nice and hazy picture of Gaudi’s master piece that is still under construction.

To many, this might sound as an obvious question. “Hey, this deck is here to get my idea funded!” While this might be the ultimate goal of your presentation, it is usual to break down the process in its individual steps.

The objective of a short elevator-pitch-like-chat or coffee discussion is not to receive the investment, it is to get to the next meeting. And reaching that next stage involves intriguing your audience enough, maybe leaving out some of the tedious detail, while not forgetting to completely  nail that big elephant-in-the-room-issue (even if it means going into excruciating detail).

Venture capitalist Roelof Botha argues that startups should take off the polish when pitching him:

MB: What puts you off when looking at a startup for possible investment? RB: Unnecessary hyperbole and polish — I much prefer raw authenticity

At first reading, this might suggest to save yourself some time and stop investing in your investor presentation. But I think the opposite is true: good presentation design is actually all about taking off the polish and bringing the raw story out, rather than shining everything up.

Slides with bullet points in fluffy language full of buzz words are polished. Minimalistic, beautifully designed visuals are raw. And this applies to all types of presentations, not just investor pitches.

Some stories are really good but complicated to explain. Here, a well-designed slide deck can make a big impact.

Other stories are relatively easy to explain, but have a few big questions inside them. In these cases, effort is better spent on providing answers to the questions, rather than investing it in making the slide deck look and flow better.

If you have limited resources, choose where you are.

Some startups have a technology platform that can be used in multiple markets, and often the startup is not completely clear (yet) about how to prioritise them. In a first 20-minute investor pitch this creates a highly confusing story; an investor can only take in so much information in 20 minutes and probably will not buy that a 5 person startup can conquer all these markets (she is probably right). Here is a potential solution:

In the first 20 minute cold pitch:

• Set up your platform business situation
• Pitch 1 (maybe 2) markets properly (the most promising ones)
• Hint at further upside in the other markets (1 quick slide)

If that went well, elaborate more in follow-on meetings about the other opportunities and provide a discussion framework about possible prioritisation, and you can even ask the potential investor for advice.

Do not try to spring all 10 stories in the first 20 minutes, you will fail.

Sometimes a startup idea is already stuck in the mind of a potential investor. I think pretty much any VC is convinced that ultimately mobile payments or social friend-to-friend shopping recommendations could be huge businesses. The bottle neck is: how to make it work. When you pitch your startup idea in one of these fields, you will be welcomed by a healthy dose of cynicism.  Do not waste your time on preaching to the converted, but have your pitch target the bottle neck in the mind of the investor.

One of the most important criteria for an investor to invest in your business is you, the entrepreneur, and the in-person presentation is an excellent way to figure you out as a person. Information about all the other elements of your company is covered in the slides, your business plan and/or your website. Investors can read about your CV, but the only way to figure you out is attending that 45 minute presentation. What you present is important, but the other 50%, how you are as a person is also vital. How is to work with you as a Board member with you, the CEO, at the helm of the company?

Can you be trusted? Trust and integrity are one of the most important things a potential investor is looking for. And it does not really work to put a slide on the projector that says “I never lie”. The investor needs other clues that come out in between the lines of your slides. Maybe an investor knows the answer to a question, but asks it any way. If you do not know the answer it is better to say so than make something up. Do you start to gossip, leak information, to people you have just met 20 minutes ago? If you do it to the potential investor, you are likely to do it to others as well.

There is no upside in bending the truth. So maybe you were successful in getting away with some form of reality distortion in the pitch meeting, the investor will eventually find out during the extended due diligence in the weeks (or sometimes) months to come. You enter an exclusivity period, you continue to burn money, and at the end the investors finds out and withdraws from the deal (integrity issues are a huge red flag). Then you are left without an investor, without funds, and a tarnished reputation as you have to explain to other potential investors why this one pulled out. Your entire company is at risk.