- What is a Pitch Deck ? Why do you need to send us one ?
A Pitch Deck for a VC is similar to a resume for an employer. If you are applying for a job, it is a given that you submit a resume, if you are raising funds from a VC, you should have a pitch deck ready. A Pitch Deck precisely defines your business, identifies your goals, and serves as your firm's resume.
- What should your Pitch Deck ideally contain ? What topics should your Pitch Deck address ?
In our experience, the following contents help to get a good understanding of a proposed investment.
1. The business
- Short description of company's business
- Vision Statement
- Historic and projected size
- Market trends and readiness
3. Product Offering
- Problems in the market
- Product description and relevant Solutions
- Current development status and projections
- Revenue generation
- Key customers
- Sales channels
- Key competitors
- Barrier to entry
6. Management Team
- Team background
- Board composition
- Projected cash flow
- Projected head-count by functional area (G & A, sales, marketing, Product Development)
Specific details of financials can be asked at a later stage. Hence sharing only a short summary initially is better.
8. The Deal
- Amount to be raised
- Valuation asked
- Use of proceeds
An executive summary or a condensed version of the full plan will be appropriate for initial consideration.
- What are the sectors that we feel are hot at the moment ? What are the cold sectors which we do not touch ?
We don’t think any sector is hot and any sector is cold. There are certain sectors where seemingly content and satisfaction is reached along with excellent organisation. But a company can still disrupt the same if it goes beyond the surface and creates a new solution to a problem which was not very apparent but still deep rooted. There are certain evergreen sectors such as education and healthcare which will always be in need of innovation. We do not limit our analysis to a surficial evaluation of sectors.
- You have a conventional business in a traditional sector. Do you think you should apply for funding with us ?
Is your team excellent and do you have the desire to get out of the garb of traditionalism and create innovation? If you are doing a traditional business, but you know that your business has the potential of significant growth and expansion, we are the best team for you. We do not think conventionally and hence we do not have any problems with conventional business, if we see the fire of a unicorn in them.
- How do you value your startup ? What is our take on the valuations of startups ?
Startups are valued based on a number of parameters and some proprietary algorithm used by us, which combines multiple techniques of valuation. But at the end of the day, value of any entity is the value at which a buyer is willing to buy and a seller is willing to sell. And we try to establish that as well before going ahead with any company.