How do you make a compelling pitch deck for limited partners?

?? Data-Backed Proof: While understanding your target LPs is key, the importance of showing numbers can't be overstated. Whether showcasing past ROI or hitting industry benchmarks, data lends credibility to VCs pitch. ?? Adaptability: LPs aren't just looking for a solid plan; they want to see that you can change gears if needed. Demonstrating this adaptability makes your fund more attractive because it shows you can navigate various market scenarios. ?? Transparency: No one's perfect, and showing that you can learn from past mistakes can be a selling point. It indicates maturity and a willingness to pivot, qualities that Limited Partners often seek.

Keep in mind that no pitch deck is either perfect nor sufficient for fund raising, its a necessary collateral when required/requested. so, essential ingredients of a good pitch deck are - who (team, past track record, new skills, capabilities to execute thesis) - why (why you, why now, gap, thesis, evidence and execution approach) - how (your compelling competitive advantage/geography/stage, more thesis & execution approach again (sourcing, inv & exit approach, value add, regulatory/fund type/size/tax structure, long term fund franchise building strategy) -A compelling pitch infact is a process of LP engagement, funnelling, relationship building, understanding/segmenting LP persona, frequent updates/comms & so much more...

?? One of my VC friends shared WeWork's pitch deck that initially wowed investors. ?? The deck wasn't just about leasing office spaces ??, but about changing how we think of workspaces, building communities ??, and boosting productivity ??. The deck was visually appealing ??, covering everything from the problem they're solving ?? to who's on the team ??♀???♂?. ?? Three Important Points While Drafting a Pitch Deck: 1?? Building an Emotional Connection with Investors 2?? Have a Clear Call To Action (CTA): 3?? Rehearse Your Pitch Multiple Times: Practice, practice, practice ??. So, when you're crafting that killer pitch deck, remember, it's not just what you're saying; it's how you're saying it ??????.

As part of the story telling, it’s important to understand the three stages of VC: 1. Investing Stage 2. Growth Stage 3. Harvest Stage Be clear on where you fund is, as well as where particular companies within your fund are within these stages. From here you can set expectations for timing of potential liquidity events. And lay the roadmap from TVPI (Total Value to Paid in Capital) to DPI (Distributions to Paid in Capital).

Important to customise this for each LP as far as possible in the pitch document. If it is not feasible to customise the pitch document, the differentiation must be clearly highlighted over e-mail, or during the meeting. Additionally, it always helps to research the LP beforehand so you know what they are currently looking for. This allows you to tailor the pitch to gather their attention - of course only if this is in line with your vision! For example, if your reseach tells you LP "X" invested in deep-tech until recently and is exploring impact investments, you can be sure to bring this into the conversation. Read a lot about your LP, watch interviews wherever applicable.

?? Take Sequoia Capital, for instance. They've not just ridden the wave of success with killer investments in Apple, Google, and PayPal. They've also got an all-star lineup of networking opportunities and a wealth of industry know-how, and they even roll up their sleeves to offer mentorship.???????? This makes them a hot ticket for LPs who want more than just a place to park their money. ?? Additional Insights? ?? 1?? Always be ready to pivot: ?? Times change, markets shift, and today's USP can easily become tomorrow's old news. 2?? Add credibility through case studies, testimonials, or demonstrated ROI ???? 3?? Identify LPs that align with your vision. For instance, LP with interest in ESG will gravitate towards ESG funds ??

I consider a16z a gold standard when it comes to crafting compelling pitch decks. ?? They perfectly blend storytelling with hardcore metrics like IRR and MOIC to build a narrative that's not only persuasive but also credible. ???? In addition, my suggestion to VCs is: 1?? Show Industry Benchmarks or Comparative Metrics: Putting your numbers next to industry standards can really make your achievements pop. 2?? Your Ability to Manage Risk During Downturns. This is your "weathering the storm" slide. 3?? Your Future Strategic Thinking and Long-Term Vision (e.g. - Softbank Vision Fund) 4?? Add Any Industry Awards or Media Coverage to Your Deck. Think of this as your "trophy cabinet" slide.

Why did WeWork's IPO tank ?? even though they had a glitzy presentation ? that promised to change the work landscape ?? forever? The answer lies in their shaky governance ?? and uncertain financial future ??. Investors simply couldn't bring themselves to trust WeWork, leading to the IPO getting shelved ?? and the company's value plummeting ??. What investors look at is: 1?? Trust ??. It is the bedrock. 2?? A long-haul vision ???. 3?? A solid game plan for rough times ???. 4?? Cultural compatibility ??. And don't forget the human factor ??. Things like team dynamics and office culture can be the deciding factors between a 'yes' ?? and a 'no' ??.

So, when advising a VC??, I don't just say, "Hey, we need cash??."No, I get specific.?? I'll say something like, "We're after some funds to grow our client base?? and amp up our tech game???." I lay out clear choices?? for investors, making it easier for them to figure out their next move??. What I'm really aiming for is forging a genuine partnership here??. Now, here are some other slick moves I pull off: 1?? Pre-empt questions from LPs?? 2?? Play the FOMO factor?? 3?? Follow-Up is Key?? At the end of the day, your "ask" is kind of like your closing speech in a courtroom drama??. Be laser-focused?? with your "ask"; vague requests are just gonna muddy the waters??.

Commence your pitch to limited partners (LPs) with a compelling narrative that weaves together your entrepreneurial journey, notable achievements, and a visionary outlook. This personal touch will not only captivate LPs but also forge an emotional connection. Sharing the story behind your venture not only humanizes your pitch but also demonstrates your commitment and passion for the fund's mission. It's the perfect foundation for an engaging and memorable pitch deck that leaves a lasting impression on potential investors.