How VCs Can Build Killer Pitch Decks To Attract Potential Investors

As someone who has been building the venture capital industry in Latin America since 1999, what is happening right now in the region feels very rewarding.

The resilience shown during the pandemic is finally paying off, as the astounding funding numbers of the first half of 2021 begin to come out: LAVCA shows that companies raised approximately $6.2 billion in VC investments in the first half of the year, a 51 percent increase over the total invested in 2020. Compared to the last half-year, the increase was 138 percent. The need for more local VC funds providing a continuum of financing rounds is clear, but are these funds finding it hard to attract sizable investment?

Crunchbase, August 19, 2021

By Susana García-Robles, published in Crunchbase (check the link at the bottom)

When I began my venture capital career, the VC world was all about internet exuberance and presenting million-dollar deals written on napkins that closed in a few days. As we all know, that didn’t last. Those of us who are still working in venture capital learned several lessons from the dot-com bubble and its crash by October 2002.

I’ve analyzed thousands of pitches throughout my career and invested in close to 100 different VC funds, mostly in LatAm, and since 2020 in other regions including Africa, India and Southeast Asia.

Managing a venture capital fund requires ongoing fundraising. Whether pitching limited partners or informally meeting potential investors, it’s crucial to have a killer pitch deck.

Creating the perfect pitch deck

When courting investors, your deck needs to sell not only the fund but also the market. Putting together the right deck takes time and constant revisions: after every conversation with a potential investor, revise your pitch deck to add clarity and address points of confusion.

Consider developing multiple decks for initial conversations and in-depth presentations of the fund. Clearly convey your message from the very first slide and remain laser-focused on your objective.

Everyone loves a good story. Focus on creating a deck that tells your story succinctly and effectively.

The introduction

Every story begins by introducing its main characters. Similarly, the first section of your deck needs to introduce the team and your investment strategy. Help LPs understand what your fund does, the team’s background, and how these two are related.

Susana Garcia-Robles, senior partner at Capria Ventures

What you do: The first challenge is to  distill your entire pitch deck into one perfect sentence, avoiding business jargon and focusing on clarity. For example, “We invest in emerging education technology startups.” Next, offer a high-level look at your firm. Include your investment thesis in a clear and compelling narrative. Make the investor see themselves as an essential component of the story.

Who you are: Selling your fund requires establishing trust and credibility with potential investors. Therefore, your deck should highlight your history and differentiators. What makes your fund different from others? What is unique about you today, and what will be unique about your firm in the future? Do you have an exceptional thesis in your space? Do you have access to an incredible network? How do you define success for the fund? Answering these questions with clarity and focus ensures your deck stands out from the pack.

Next, share your personal history and that of your co-founders. What is your background? What makes you uniquely qualified to manage these investments?

Highlighting your differentiators is key. Ultimately, this section should focus on building curiosity so the investor wants to continue moving through the deck.

Turnings points and the way forward

This section should explain what your firm does and why you are confident the fund will see great wins in your specific market. It should be data, logo and detail heavy. Remember that whitespace is also essential. You want to provide the right amount of information without overwhelming the potential investor. The facts and information density should change in this section depending on the type of deck (introductory or in-depth).

 

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