What does it take to create a perfect pitch deck that will entice investors? This is a critical question for any blockchain startup that is looking to launch an ICO, although there is no one-size-fits-all solution for this. What is your project trying to achieve and how will it do that? The answers to these questions vary for every token model. But what is certain is that your ICO pitch deck shouldn’t be taken lightly.
The ICO space is not in its nascent stages anymore. The top investors are already familiar with the idea of tokenising a business model, and sadly, they no longer have time to read a 20-page white paper. They want to know your proposed solution to a problem and the feasibility of the project in terms of making money. So, consider these useful tips.
Get to Know Your Investors before Engaging Them
The most important factor for building strong investor relationships is knowing the person you will be presenting your pitch deck to. You have to keep in mind the stage of your ICO at the time; some investors are ideal for seed rounds, some for the early stage and some for active ICOs. It is also smart to know about potential angel and venture capital firm investors who will most probably invest in you.
Find common grounds with your potential investors ahead of your presentation. Do some research and find common connections. Take a look at their LinkedIn profiles and see what projects they have been previously associated with. There are many investors who would like to know exactly why you have chosen them for funding your project, and you should know the answer to that question. Approach them in a respectful manner, without appearing overconfident. Stay professional and stick to your ICO idea.
Knowing how to engage with a potential investor will demonstrate that you have what it takes to engage fruitfully with customers and strategic partners too.
The Problem and the Solution
Many entrepreneurs plunge into the solution aspect, without educating their investors about the problem they are attempting to address. What you need to do is prepare the presentation carefully to first talk about the problem and how existing solutions do not address it in its entirety. Take these basic questions into consideration:
- What is the existing problem?
- How do you know it is a problem? (Primary and secondary research should be included here.)
- Who are you targeting with the solution?
- Do you have the skills to capture the market?
Now that you have presented the problem, give details of the solution you are offering. Explain your token economy. What you need to keep in mind at this point is that your potential investors will likely have tons of experience in ICO projects, so you have to strike a balance here. While you don’t want to look like you are talking down to them, you also shouldn’t talk in complex technological jargon.
Include analytics and up-to-date key statistics to support your conclusions. You could also mention some real-life case studies. Vague descriptions turn investors off.
It goes without saying that you have to present highly eye-catching slides. A company building a tokenised asset to solve an impending issue in society will be expected to match certain standards of being visually compelling. Investors have seen plenty of presentations before you and will do so after you are done too. So, your presentation has to stand out from the rest. First of all, the attention span of investors is short; they are pressed for time, so make things clear and concise. Start with an impressive introduction.
Many ICO startups avoid sharing ambitious financial targets. So, if you manage to do that, it could impress investors. You are asking for funding for your project, so the investor should feel that you have a plan to provide attractive returns for their investment. The next point will explain that in detail.
Display Traction and Competitive Advantage
Investors will be looking for competitive advantage of your token and other indicators of your success or failure. There first instinct is to check if they are investing in a profitable venture. Most of them are not bothered about the token mechanism and computing capabilities. With each project comes different traction metrics.
For example, emphasise the prospect of market growth and if you have the required skills to capture the growing market, explain the ways in which you aim for high level execution of your token. Consider these questions:
- Will the token be listed in the future and what will be its price? What methods are you applying for your token valuation?
- What will be the monthly growth rate?
- How is your token better than others?
- Do you have partnerships?
If your blockchain project has partnerships, you have to establish credibility here. Partnerships are hard to valuate and many fail in the long run.
Establishing credibility is important and the team has to live up to the investor expectations. This is tricky, since different investors have different expectations from a team. But it is guaranteed that the credentials of your team are a persuasive factor.
You can choose to mention here the entire token conception. If you think that this story is not appealing, you have had more failures than successes in the past, or you do not have huge experience in this field, be brief – but, do mention it.
It will be useful to include the backgrounds of all the team members, their previous projects and successes. Mention about any advisors on your team. Reputed advisors can make a positive impact on investors. Tell them about the various social platforms that you are on and what steps are you taking for effective community management.
Creating the perfect pitch deck takes time, so may sure you think about it thoroughly and include all the relative points.