The Best Investor Deck Ever
The founder of a company I'm an adviser to recently asked me for tips on creating a PowerPoint presentation for his upcoming investor roadshow....
The founder of a company I'm an adviser to recently asked me for tips on creating a PowerPoint presentation for his upcoming investor roadshow. He asked me to send him a copy of the best deck I've ever seen.
Wow. I've seen some really excellent presentations, but the best ever? His question let me on a search through my hard drive, my phone book, and the web - on a quest for the best investor presentation format.
Over the next few days, I'll be publishing the finalists - starting today with the 'classic' plan format recommended by Sequoia Capital. Note: watch the video at the bottom of the page in conjunction with the slideshow above, and you'll get a great replay of Jim Goetz's presentation to Stanford students.
Sequoia Capital "Ten Slide" Format
There aren't many VCs that are as successful, well-resourced, and broadly-focused (i.e. across multiple industries) as Sequoia Capital. Here's their published list of what should go into your ten-slide deck (you should check out their excellent "Elements of Sustainable Companies recommendations as well):
1. Company Purpose
- Define the company/business in a single declarative sentence (Important Note: Sequoia partner Jim Goetz says that only about 1 in every 15 entrepreneurs they see are able to do this successfully)
- Describe the pain of the customer (or the customer's customer).
- Outline how the customer addresses the issue today.
- Demonstrate your company's value proposition to make the customer's life better.
- Show where your product physically sits.
- Provide use cases.
4. Why Now?
- Set-up the historical evolution of your category.
- Define recent trends that make your solution possible.
5. Market Size
- Identify/profile the customer you cater to.
- Calculate the TAM [Total Available Market] (top down), SAM [Served Available Market] (bottoms up) and SOM [Share of Market].
- List competitors
- List competitive advantages
- Product line-up (form factor, functionality, features, architecture, intellectual property).
- Development roadmap.
8. Business Model
- Revenue model
- Average account size and/or lifetime value
- Sales & distribution model
- Customer/pipeline list
- Founders & Management
- Board of Directors/Board of Advisors
- Balance sheet
- Cash flow
- Cap table
- The deal
Pros: It's all in here. I love the focus that 'a single declarative sentence' enforces. The business model elements in Slide 8 are nicely thought-out 'lifetime value' is something some entrepreneurs don't even consider - why would someone stop using my product?)
Cons: I personally think there are too many slides in this deck. I've presented using decks that follow this structure, and the problem with providing separate 'Solution' and 'Product' sections is you end up asking questions about the product in the earlier part of the presentation, so things get repetitive - and can easily stray offtrack. If I were in a room full of Sequoia partners, I would want to get a conversation going ASAP - this deck feels like it would take up the entire time.
Suggestions: If I decided to utilize this format, I would reverse the order of slides 4 and 5 - and talk about market size first, then why it's the right time for this product. If you're up for making wholesale changes, I would suggest you just go with slides 1, 2, 3, 5, 4, 8 (incl. 10) - and keep the competitive analysis (6) and product architecture (7) for the appendix.
Learnings: Jim Goetz took some Stanford students through the whole process above - the video is only 17 minutes and well worth watching.
John is a serial entrepreneur and investor, and the co-founding Partner of Hatcher+, a data-driven, globally-focused venture investment platform based in Singapore. In addition to leading capital raising and deal syndication, he is the visionary and architect behind the Hatcher Stack, the company's venture-oriented business process automation platform. Over the past five years, John has led numerous venture investments in early-stage companies, including ASYX, DocDoc, Dropsuite, Invit, Inzen Studio, SocialCops, ThoughtRiver, and Telr - and syndicated over US$100Mn of additional debt and equity co-investment. IPOs and trade sales in which he was acted for the majority shareholder include Dropsuite (ASX:DSE) and Inzen Studio (ASX:ICI). His M&A work includes the merger of payment leader Telr with Dubai-based Innovate Payments, and the merger of Singapore-based companies DocDoc, and DoctorPage. Prior to co-founding Hatcher, John founded cybersecurity technology leader Authentium (acquired by CYREN in 2010), and acted as a director for global payments aggregator Mozido, and an advisor to Africa-based Gateway Communications, satellite technology developer MDS America, Kuwait-based Internet marketplace Sheeel.com, and Orion Partners, a $2B private equity fund manager based in Hong Kong.
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