In the world of Venture Capital (“VC”), securing investment can feel like navigating uncharted waters for many entrepreneurs. Recently, during a VC discovery workshop for young entrepreneurs, we discussed the importance of creating materials to understand the intricacies of the VC investment process and how to capture the attention of potential investors. As a VC analyst, part of my role involves sifting through pitch decks and identifying promising startups for initial discussions. In this article, I'll dive into this crucial stage of the VC process, in order to help current and aspiring entrepreneurs stand out and secure that all-important first call.
At True, we are committed to providing a fair playing field for all entrepreneurs, regardless of background or connections. We meticulously review every deck that lands in our inbox, whether it's from a seasoned founder or a first-time entrepreneur. With around 3,000 decks crossing our desks each year, our approach is rigorous, focusing on clarity, conciseness, and alignment with our investment criteria. A well-crafted deck that ticks the following boxes will initiate conversations, even without the benefit of a warm introduction.
Stage and Sector: Before hitting send on your pitch deck, it's crucial to ensure alignment with the VC's investment thesis. In terms of True’s VC strategy, we specialise in early-stage investments (Pre-Seed to Series A) across the Consumer and Retail sector and invest in both B2C and B2B business models. Our fund has a unique model as we work alongside True’s Private Equity and Innovation Advisory teams, giving us sector-specialist insight and a powerful network of mid-market and enterprise companies in the Consumer and Retail sector to whom we can provide meaningful connections for our portfolio.
Geography: Unlike many UK-based funds, we can invest anywhere in the world. We tend to focus on our core markets of the UK and Europe but also have strong Consumer and Retail relationships in the US and Australia.
Team: Traction may be limited in the early stages, so team composition is key. A diverse, complementary team including previous start-up and/or industry-specific expertise increases confidence in your ability to execute. If you are a less experienced founder, don't overlook the value of industry advisors who can offer invaluable insights and mentorship. Don’t forget to include your LinkedIn URL so we can easily check your profiles!
Problem & Market: Your pitch deck should articulate a clear understanding of the problem you're solving (insisting on emotions or data and facts), the scale of the market opportunity it represents and crucially, why now is the time for a start-up to solve it. We look for founders solving meaningful Consumer and Retail problems, and the better we understand the problem from the pitch deck, the faster we can use our unique model and industry connections to validate it.
Product & Customer: Your deck should clearly articulate your product or service offering and its alignment with market needs. Having a visual element such as a picture of your product or platform can help explaining what your business does. Then, highlighting your Ideal Customer Profile (ICP) will enable us to assess how we can activate True’s network of corporates, mid-market companies and industry executives to accelerate your Go-To-Market strategy. Finally, understanding your customer acquisition channels, pricing strategy and distribution channels will help us evaluate your readiness to execute.
Competitive Landscape: In a crowded market, differentiation is key. Whether through proprietary technology or a unique value proposition, your deck should convey a clear and tangible competitive advantage that sets you apart. Good investors will find your competitors in their diligence process, so be up-front about who else is out there and why your approach will win in the long run.
Tangible metrics: Early indicators of traction and engagement (e.g. user growth, revenue growth, retention, repeat rates, etc.) bolster your credibility and validate your value proposition. If you’ve been trading for a while, we also love to understand your key unit economics metrics (e.g. customer acquisition costs (CAC), revenue per customer, gross/contribution margins, lifetime value, etc.) as the bedrock of sustainable growth.
Clear Funding Ask: Concluding your deck with a clear call to action, funding ask, and use of funds sets the stage for next steps. There, add your email address and domain so we can reach out easily!
Crafting a compelling pitch deck is not easy but it is a key document in helping you secure funding. By aligning with an investor's thesis, showcasing market understanding, initial traction, and a high potential team, you can significantly enhance your conversion to a first call.
Have questions or eager to connect with True? We're here to help. If you are a founder, investor or anyone else who knows of an opportunity that might fit our approach, please get in touch at vc@true.global.
