Startup pitch decks can be worth far, far more than entrepreneurs appreciate.
Great pitch decks can be worth billions of dollars. They make or break ventures. They separate the market leaders from the mediocre and failures. They set up incredible careers as serial entrepreneurs who are able to go on to succeed at even bigger things.
So, how much is your pitch deck worth? What should that mean to you when you are working on creating your next deck? What are the most critical aspects to include as your startup accelerator program will advise?
How Much Are Pitch Decks Really Worth?
Calculating the value of a pitch deck may be much like calculating the lifetime customer value for a startup.
As much as it is talked about, and regardless of how important it really is, few really bother to do the math. Nor to make the right decisions which will maximize and extend that value. Of course this is true for giant public corporations as well.
Yet, if you nail this, it not only means maximizing funding, speed, and being able to fulfill your purpose on this mission, but all the impact that can have, and more.
If you want to put it in simple mathematical terms, some pitch decks have been responsible for raising billions of dollars.
To put this in perspective, let’s look at some of the biggest rounds, and most funded startups.
The Biggest Funding Rounds Of 2022
SpaceX recently raised another $1.7B. It’s worth noting that Elon Musk also raised another $675k for The Boring Company’s Series C round in April 2022.
Wonder got $350M, at a $3.5B valuation in a round led by Bain Capital.
The Yuga Labs pitch deck must have been a great hit. The Miami based startup raised a $450M seed round in 2022.
Then there is Adam Neumann, who despite infamously losing investors tens of billions of dollars with his previous venture WeWork, just managed to get $350M from Andressen Horowitz for a new company. One which he hadn’t even really declared what it would do when the news broke of the capital and $1B valuation.
Value Beyond The Immediate Capital
There are actually many ways that a startup pitch deck can unlock immense value beyond just the cash put in the bank in a given funding round.
Credibility & Awareness
A great pitch deck doesn’t fail, even if it doesn’t get a yes from every investor.
Great pitch decks have gone on to be long term branding and advertising materials for many startups. They get published, and people search for them online.
A good pitch deck shows that you really know what you are doing. Which can at least keep you on investors’ radar for future rounds.
It can also create customers out of them, and other entrepreneurs who encounter your deck over the following months and years.
Bringing In Expertise
How much would it cost your startup to hire someone like Mark Cuban? Could you afford it, even if you brought in a several million dollar seed round?
If you connect with investors well, they will not only give you their money, but their time, and invest their expertise in your success.
Bringing in New Connections
Well connected investors also give you their connections. Which is especially valuable when it comes to distribution and supply channels.
It may enable you to connect with and tap into these companies you would never get access to otherwise.
With a company like Google, that can mean bringing your product to the masses and promoting it to billions of prospective customers overnight.
Attracting Great Talent
Talent is one of the most valuable assets a startup can have. The team will certainly make a big difference in succeeding at fundraising.
Your pitch deck can make all the difference in convincing top talent to join you. If you stand out, show them that you are really onto something, and have what it takes, they will seek you out. It they are passionate enough about what you are doing, and compelled by your deck, they may even be willing to work for less, or at least take equity and options as a part of their compensation instead of the level of salary they could get elsewhere.
Setting Up A Profitable Exit
It is not uncommon for a startup to begin a fundraising process, and then switch to an M&A transaction.
If you nail it, it may be obvious to those you present to that it is smarter and cheaper to buy your company now, rather than having to pay many times as much to avoid you being a competitor later. Even if that means giving you a substantial premium over what some traditional valuation methods would put your company at today.
Factors Involved In Unlocking The Full Value Of Your Pitch Deck
Of course, to some extent the amount of funds you directly raise in a round are some measure of value.
Though to maximize that metric, and all of the other potential value, it will take being intentional.
It’s not just high quality slides, and crafting great copy that sells. It also involves you successfully getting your pitch deck in front of investors and others. Which can be a speciality of its own.
How you verbally present alongside your deck is impactful too. You have to show up and be able to communicate just as well as your slides do.
Then, the longer term value will depend on how you continue to use and wield it as an asset.
What It Means For Startups
Each slide in your pitch deck can easily be worth $100k in a Seed round. For some it will be tens of millions of dollars for each slide. Billions if you factor what it snowballs into after a few rounds.
So, don’t try to wing it. Don’t be too cheap. You are going to get a return in relation to the investment you make in your pitch deck. So, invest well, and get the best team working and advising on it.
BIO
Alejandro Cremades is a serial entrepreneur and the author of The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star, Barbara Corcoran and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs.
Most recently, Alejandro built and exited CoFoundersLab, which is one of the largest communities of founders online.
Prior to CoFoundersLab, Alejandro worked as a lawyer at King & Spalding, where he was involved in one of the biggest investment arbitration cases in history ($113 billion at stake).
Alejandro is an active speaker and has given guest lectures at the Wharton School of Business, Columbia Business School, and NYU Stern School of Business.
Alejandro has been involved with the JOBS Act since its inception and was invited to the White House and the US House of Representatives to provide his stands on the new regulatory changes concerning fundraising online.
