Pitch decks—the gateway to funding—are often treated as exhaustive documents. Yet, in the fast-paced world of investors, brevity is a virtue. Codie Sanchez on her X (formerly Twitter) page wrote about how she secured $50 million for a cannabis fund and how you can do the same. This article delves into the strategies of crafting an impactful pitch deck that secured $50 million in funding using a double-sided rule, the five-finger list, and other key elements.
Overrated vs. Underrated: The Power of Conciseness
Overrated: Pitch Decks
Lengthy presentations seldom capture attention or funds. Most investors lack the time to peruse extensive manifestos.
Underrated: Tear Sheets
A successful pitch deck doesn’t equate to volume. The $50M cannabis fund was raised with just a double-sided, 2-page pitch alongside a page of disclosures. If it can’t be understood within 2 minutes, it needs reworking.
The Elements of an Impactful Pitch Deck
1. The 5 Finger List
Remember, people retain 5 data points, so place them prominently:
- Deployed Capital
- Inception Date/Year
- Companies Invested or Total Revenue
- Fund Target (What constitutes success?)
- Wins
2. Market in 1 Market
Avoid verbose explanations about the market. Instead, offer a high-level view of the present and future (5-10 years) in 5 bullet points.
3. Tagline
Craft a succinct sentence that defines your investment focus:
- Former fund: “We back bold entrepreneurs building the future of Cannabis.”
- Sequoia: “We help the daring build legendary companies.”
- Current HoldCo: “We’re revitalizing Main street through strategic investments.”
4. Control Vernacular
Develop a distinct language to steer conversations. Example: “plant-integration” for the integration of cannabis into modern lifestyles.
5. Investment Process
Clarify the path post-investment concisely and outline fund characteristics upfront. Transparency is key.
6. Prove It, Don’t Tell It
Use graphics to illustrate asset allocation and historical returns, backed by legal expertise for accurate disclosure.
7. Team
Prioritize the team’s credentials. In the world of investment, the team often outshines everything else. No historical track record? Emphasize the strength of your team and investment process.
8. The 3 Ps at Goldman
Focus on the three vital aspects: Process, People, and Product or Plan, Path, and Performance. Align these aspects meticulously for a compelling narrative.
Conclusion
A winning pitch deck doesn’t need to be a tome; it must convey the essence succinctly. By mastering the art of concise communication and embracing the power of brevity, you too can present a compelling pitch that attracts investors, even without an extensive track record.