Enterprise capital (VC) funding is very wanted by entrepreneurs, however solely about 100/ 100,000 ventures truly reach securing it, about 80/100 fail with it, and solely about 20/100,000 ventures truly succeed after they safe it. Regardless of the shortage of VC and the excessive failure price, many entrepreneurs search VC with VC pitches, or search assist from the business-school-and-incubator community to create “profitable” pitch decks.
Whereas most pitch decks embrace standard elements like product/service description, market evaluation, administration monitor document, and monetary particulars, the fact is that pitch decks are a really poor predictor of enterprise potential – and complex entrepreneurs and VCs know that. Nobody can forecast your potential from a pitch deck. For example, about 10 of the world’s main VCs rejected Steve Jobs, and about 12 rejected Google.
That’s why VCs look forward to Aha, i.e., actual proof (proof) of potential, not simply phrases on a web page. There are 4 forms of Aha based mostly on the true outcomes of billion-dollar entrepreneurs. On this article, we’ll discover 4 forms of pitch decks based mostly on these 4 forms of Aha that improves your probabilities of getting VC in the event you nonetheless need it whenever you get to the actual sort of Aha – 94% of billion-dollar entrepreneurs took off with out VC.
The Earlier-Unicorn Pitch Deck: If you’re an entrepreneur who has already achieved unicorn standing with a earlier enterprise, you can find it comparatively simple to draw VC in your new enterprise. Such a pitch deck showcases your monitor document as a profitable entrepreneur. As an example, Elon Musk’s pitch deck may merely state, “Hello, I am Elon Musk, and I am contemplating beginning a brand new enterprise. I am going to present extra particulars later. Within the meantime, ship your checks to the next handle.”
The Unicorn-Expertise Pitch Deck: Entrepreneurs who’ve developed a billion-dollar know-how that addresses a major market want have a robust probability of securing VC. Such a pitch deck emphasizes the confirmed efficacy of the know-how and its potential to disrupt the market. For instance, a technologist like Herb Boyer may introduce his pitch deck by saying, “Hello, I am Herb Boyer, and my colleagues and I’ve efficiently pioneered the sector of genetic engineering.”
The Unicorn-Technique Pitch Deck: Entrepreneurs who’ve already launched their ventures and demonstrated their unicorn-level technique have a bonus when in search of enterprise capital. Such a pitch deck highlights the enterprise’s profitable execution and market traction. An instance may very well be Pierre Omidyar, the founding father of eBay, saying, “Hello, I am Pierre Omidyar. I began a web based public sale firm and had lots of of hundreds of auctions final month and have the potential to develop into thousands and thousands.”
The Unicorn-Entrepreneur Pitch Deck: Pitch decks from unicorn-entrepreneurs who’ve efficiently launched a unicorn enterprise and are beginning to dominate their rising trade can generate important curiosity from VCs who need to spend money on a possible Unicorn-Entrepreneur because of management expertise. These entrepreneurs have already demonstrated their skill to create a profitable enterprise, making it extra seemingly that VCs will need to make investments. As an example, Mark Zuckerberg’s pitch deck may embrace a assured assertion like, “Hello, I am Mark Zuckerberg. I not too long ago launched Fb and have already captured a considerable person base, beginning with Harvard and Stanford college students. Now I plan to develop to the remainder of America and the world.”
The Finest Pitch Deck
The final word pitch deck is one which you do not want as a result of your enterprise is already rising quickly with out VC funding. Jan Koum’s expertise with WhatsApp exemplifies this method. Having constructed the corporate with angel capital and reaching profitability, Koum solely accepted VC funding after eight months of persistence from a VC agency. A pitch deck from him may merely state, “Hello, I am Jan Koum. I constructed WhatsApp with $250,000 in angel capital and we’re already worthwhile. So, truly, I do not want your funding. Please, buzz off.”
MY TAKE: Whereas pitch decks are all the trend, it is important to supply actual proof of potential. Empty guarantees and inflated claims can solely go to this point. By studying from unicorn-entrepreneurs who’ve achieved exceptional development with out VC funding, you’ll be able to achieve precious insights into constructing a robust enterprise basis. Bear in mind, VCs are in search of tangible proof of success. Intention to supply actual proof that demonstrates your enterprise’s potential and your expertise, and you will enhance your probabilities of securing enterprise capital funding