As an entrepreneur, you might have heard that an essential part of seeking venture capital (VC) funding is having a well-crafted deck. A deck is a comprehensive presentation of a company’s performance, strategy, and prospects, typically presented to investors in the form of a physical or digital slideshow. It’s not necessary, however, to have a deck prepared in order to go out and secure VC funding.
While having a deck is convenient for investors in order to quickly get a sense of the business and its potential, there are other equally valid ways for entrepreneurs to establish themselves before VCs. Your unique case and the attractiveness of the potential return for the investor should be the main focus. A well-structured plan can be just as useful, if not more so, than a deck. It’s important to remember that every deal is different, and every investor will have their own criteria.
Rather than using a slick, well-prepared deck, entrepreneurs can present their ideas in different ways. They can start by creating a business plan, which provides a better overview of the product and its market potential. This can be followed by a detailed financial forecast that outlines the target growth and any future capital requirements. It should also include the expected return on investment (ROI) and measure of success of the venture. These documents can give VCs an in-depth view of the company, which a concise deck may not be able to do.
Entrepreneurs can also meet with VCs to discuss the venture and present their ideas. This is an invaluable opportunity to answer questions and provide any relevant information that the investor may be looking for. It’s also important to note that the investor will likely ask for additional information, so the entrepreneur should try to anticipate these needs and be prepared to provide the documents and data.
In short, when it comes to presenting a venture to VCs, whether or not you need a deck depends largely on you as an entrepreneur. A business plan, financial forecast, and personal meetings with investors may all be more effective tools than a deck for presenting the potential for a business and getting the funding you need.
