What are the best practices for creating a pitch deck for angel investors?

As an entrepreneur, I've pitched to over 1,000 investors. And as a VC, I've listened to over 10,000 pitches. Here are my learnings. The biggest mistake founders make is selling from the get-go. You must first look to build a working relationship. Doing the research isn't enough. While you're doing the research, approach potential investors to seek advice first. Most investors want to give back, so asking for time to listen to your pitch and seeking advice is a great way to build a working relationship. Speak to founders who have already raised money from your target investors. Understand what they like, dislike etc.

As a second time founder who raised $5M+, pitched to hundreds of investors and went through Techstars and Berkeley SkyDeck, I’ve learned that one thing about raising from angel investors. Pitch to those people who organically understand the problem you are solving. They have experienced it first hand or are top managers in companies in this space or founder of late stage startups in this space. Find those and emphasize in your pitch and deck on the problem (that’s the core thing that should be clear to EVERYONE) and about you (why you are the best team to solve this problem). And the rest is making them excited and finding this interpersonal magic.

There are some common themes that you want in any pitch deck regardless of angels or funds. Here are the questions that your deck should aswer: What is the problem you are solving for? Who has this problem (your ICP)? How big is this problem (market size)? How are you solving this problem (aka your solution)? Who is solving this problem (your team/experience)? How are you solving this problem differently than everyone else i the space (competitive analysis)? What is the ask (how much are you raising, what are you using the money for and how long does it give you)? Nail these answers with a powerful deck.

Getting an angel to invest is a function of the following: a. chemistry - Chemistry between the founders and the angel. b. Mathematics: Does the business model make economic sense. c. Physics - Is the solution being offered likely to kill the pain. On the pitch deck it should be no more than 10-15 slides. Very briefly: 1. Define the opportunity, addressable market and scalability. 2. Validate the need and the intensity of the need. 3. Identify the customer/ the pain point/ will he/she pay? 4. Identify competition/entry barriers/trends 5. Team-Why is your team best position to deliver? 6. Identify risks/capital efficiency 7. revenue model 8. financial model. Finally ask for the capital. Lots of information in a few slides is the key.

When founders think about their investor audience, they tend to pitch to a pile of (perceived) cash. Investors are human beings who happen to have a very unique job. Get to know your investors, and their firms, so that your pitch speaks to them and the goals THEY want to achieve. Remember: you're having a conversation with another person.

Also remember that investors spent on average less than 90 sec on your deck. Meaning 5-7 sec per slide. If you can’t read your own slide within 5 seconds - cut it. Use titles to communicate the core message from the slide. Ideally investors can get a clearly and catchy story just by reading titles of your slides.

I would also add the 7/4/1 structure: Try to keep it at 7 words per line. No more than 4 lines per slide. No more than 1 thought per slide. Be concise with your pitch deck. This is harder than you think. Because we all want (me included) want the magical deck to do the meet/pitch/DD/close the deal in one format. The deck is to get your vision/business/idea to an Angel as quickly as possible. After your pitch, build the relationship not closing the deal. That could take time so be patient and nurture the relationship.

As a second time founder who raised $5M+ and mentored 30+ founders to successfully raise, I recommend focusing on 3 core parts if you are pre-seed stage (pre revenue and pre exciting traction). - Problem - How big is the market - Team At this stage it’s not about the solution. Even though as a founder it’s all you want to talk about ;) At early stage investors want to see a clear problem that has HUGE market (for many unicorns) and that you are the best team to solve it (domain expertise, market insights and execution). Because great team at a big enough market can pivot 100 times and still find a solution.

If you have traction, lead with it. Don't bury your success so far behind a lengthy discussion of the industry. Investors may only spend 20 seconds looking at your deck before passing, so you have to hook them. Revenue & customer numbers catch their attention and pair nicely with an explanation of problem validation.

One thing to zero in on against each claim, solution or data point is ‘HOW’ you’re going to achieve it. WHY x WHAT x HOW The ‘HOW’ demonstrates your understanding and credibility in your market. This gives the investor greater confidence you’re the team to get this done.

There is a certain structure and flow to a pitch deck that investors are expecting to see. When you deviate from that structure, the investor is left feeling confused rather than focusing on your pitch. In addition to simply making sure you have all of the right slides, you need the pitch to tell a story. Make your audience feel the pain of your target market. Show your audience how your solution is just what the market needs and why now is the right time. It's truly amazing when it all comes together.

What is the compelling story you want to tell. You need to lead with the problem you are solving, really compelling reason why you are the right person to solve that problem and tie it in with a story that shows why you are passionate about solving it. Investors want returns but angel investors also usually want a connection with the founders and/or problem they are solving. You can show traction, problems, revenue, biz model, etc. But you really need to land your story. Write out the story first for the whole pitch...then go back and think about slides and visuals. Too often people start with the slides and lose the story.

Using your storytelling to evoke emotions in your audience goes a long way in establishing a sense of purpose. When they understand the “why” of your product/service it is much easier to align them with your mission. Numbers in the pitch deck are important but why and how you’re solving a problem is an emotional pitch.

Get uncomfortable with practicing your pitch. Practice out loud; things sound differently when you speak them versus the dialog in your head. Record yourself on Zoom (or similar). Just knowing that you're being recorded is enough to get the adrenaline going. Once you have a rough idea of what you will say on each slide, only do straight run-throughs from that point on. If every time you get to slide #6 you mess up and stop, you are conditioning your brain to always stop at that point. When you commit to doing straight run-throughs you learn how to correct yourself and will actually make fewer mistakes. YOU know you didn't say something but your audience will never know.

One thing i've found helpful; is to remind founders that an angel investor is primarily looking for three things in your deck: - Your credibility as a founding team - The size of your opportunity - The logic in your thinking Any detail beyond that is largely hypothetical. It helps to frame your investment materials along these lines too.

When creating a pitch deck for angel investors, one critical element to include is the "Why Now" slide. This slide should clearly articulate the current market conditions and trends that make this the perfect moment for your startup to succeed. Highlight any technological advancements, regulatory changes, or emerging market needs that align with your solution. Demonstrate how your product or service is uniquely positioned to capitalize on these opportunities. Providing compelling evidence of why now is the ideal time to invest in your startup not only underscores the urgency and relevance of your venture but also helps investors understand the potential for immediate traction and growth.

Don't start on a pitch deck until you've done a canvas, spoken to customers, built a forecast, worked out market size, know your starting business model and how you can deliver those important sales. The pitch deck gets done last and be concise. Paint a picture of stuff it's important for an Angel to know (not what you want to show off). They don't care if you finished third in a pitch competition. You as a founder (or founders) and how you present yourself/selves is paramount. If you're asking Angels for money then you're early stage. They have to believe YOU are the person (or people) that can execute what you're promising in the deck as you don't have a mountain of sales as proof. Focus on domain expertise and track record of execution.