How can you evaluate growth potential in a pitch deck?

Stop selling your company .. rather describe the problem you solving, why you are better, how much big is the market (TAM), founding team, Profit margins (if already earning revenue). Know you competitor (specially your strength and their weakness).. if you any competitive advantage ? or if you own any patent mention it. Please no fake made up numbers and special not showing TAM is multi million or in billion and even if you occupy 0,001% (some minor % you get the large chunck etc.) ... Never show investor the exist strategy at first place until anyone ask about it. Be honest. Know your unit economics

Discussions that are conversational with the right VC for your company are ideal, because then the pitch deck is supplementary material that can help them dive into your solution and demonstrate how well you know your market. Relevance, urgency and need are important and can be demonstrated by going beyond the usual metrics like TAM and honing in on more nuanced metrics of customer behavior and demonstrating the opportunity cost.

Limit pitch decks to 10-15 slides max and focus on communicating only the most essential details. Avoid too much text or complex graphs. Simplicity makes it easier for investors to grasp key takeaways. Assess if the startup is solving a big, urgent problem for a large, growing market Evaluate if their solution is unique, compelling, and clearly differentiated

In evaluating growth potential in a pitch deck, focus on the problem-solution dynamic. Clearly articulate the problem your product or service addresses and how your solution uniquely solves it. Demonstrate a deep understanding of your target market's pain points and the compelling value proposition your solution offers. Highlight the scalability of your business model and how you plan to capture market share over time. By effectively communicating the alignment between the problem, solution, and market demand, investors can visualize the growth trajectory and potential of your venture. This clarity instills confidence in your ability to achieve substantial growth.

I teach my mentees two key elements of the problem-solution component crucial for a pitch deck. First, any problem-solution narrative should include 'pain and gain'—highlight the pain points being addressed and the gains customers experience. Second, I encourage them to envision a world where the problem is solved, enhancing their ability to articulate a compelling vision. This methodology cultivates a mindset focused on both the challenges and the transformative impact of their solutions offering a glimpse into a better future made possible through their innovation.

One of the most common mistakes I see in this area is not refining the market enough. I can't count how many times I've seen "Insurance is a $1T+ market and XXXXXX is about to disrupt it by...". It's true that insurance is a trillion dollar market. It's absurd to think that any one company could build something to affect all of it. Pick your lane and speak to the specific market you are aiming to impact. Otherwise, it just shows unrealistic expectations, ignorance, or both.

(a) Identifying barriers to market entry is crucial for understanding the startup's challenges and opportunities. By examining regulatory, technological, and capital barriers in a fintech pitch deck, I could assess the robustness of the startup's entry strategy and its ability to overcome these hurdles (b) Projected customer adoption rates can indicate market receptivity. In a SaaS startup's pitch, scrutinizing their adoption curve projections alongside industry benchmarks provided insights into the market's readiness for their solution and the potential speed of growth.

Viewing the market as a dynamic, interdependent ecosystem opens a fascinating lens to evaluate a startup's potential. The startup's success hinges not just on addressing the current size and segments but also on its agility and adaptability to evolving market dynamics. Understanding the interconnectedness of market trends, consumer behaviors, and global economic shifts can unveil hidden opportunities and risks, offering a more nuanced approach to gauging market opportunity. It's crucial for startups to not only map out their immediate addressable market but also to anticipate the ripple effects of their actions across this vibrant ecosystem, leveraging the interplay of market forces to their advantage.

Structure the pitch deck to tell a logical story arc about the problem, your solution, business model, traction and future growth potential. Weave in a persuasive narrative. Review data on the total addressable market size and growth trends Gauge if market opportunity estimates seem realistic

No sensible investor believes in the gigantic TAMs often presented in early stage pitch decks, so avoid going down that route. More importantly, emphasize both the significance of the problem you are solving, how widespread it is, and how your go-to-market strategy will help you capture that market. It's really about qualitative factors, showing vision and ambition, in the early days of a startup. Products can evolve, target markets can change and expand.

Financial projections are a slightly controversial concept at the earliest stages. After all, how much certainty can you have about those numbers? Well, none. That said, they do provide a valuable reflection of your pitch. How fast do you see your company growing? What's the road to profitability like? What future rounds of fundrasing do you foresee? All of this is valuable information to a smart investor who wants to build a more comprehensive view of your startup.

For the growth potential you need, among others, the right business model to ensure a efficient growth. Here you’ll favour business models that are scalable and can easily grow. First we always like recurring revenue as you can stack it. Then you should look at the potential upsell. How much and how easy can you upsell? Also, can you grow with your customer? If it’s user based pricing you’ll have good potential to grow with your customer. All volume based pricing might be similar. The only risk here is that you’ll suffer from the downsides of your customer. The upside is still quite important and depending on your customer base this can payout a lot.

Ensure visual consistency between the pitch deck design/aesthetics and your actual product and website. Reflect your personality. Scrutinize their revenue model, pricing strategy, and path to profitability Check for diversified streams and clear plans to scale

Often, we miss how a startup plans to make its business model and money-making ways work smoothly in real life. A startup's blueprint for success isn't just in the value it aims to provide or its revenue mechanisms but in the operational DNA that supports these ambitions. How will the startup's day-to-day operations, from customer service to supply chain logistics, embody the business model? The robustness of a startup's plan is tested by its operational strategy's adaptability and efficiency, ensuring the model's sustainability and scalability. This means considering more than just profits but making the whole system work well together.

Evaluate the business model's value generation for stakeholders and the clarity of revenue streams. Analyze the startup's cost structure, pricing strategy, and unit economics to assess profitability and sustainability. Ensure the model aligns with market expectations and has the potential for scalability.

Evaluate the team's relevant skills, experience, and passion for executing the startup's vision. Assess their adaptability, learning capacity, and collaboration in dynamic environments. Identify any team gaps or weaknesses and the startup's strategies to address them. Ensure the team's composition aligns with the startup's long-term goals and market demands.

Understand the specific investor's goals and background when designing a deck. Adapt content appropriately for different target audiences. Verify if the team has the required skills and experience See if they have advisors or board members with relevant domain expertise

Milestones are a hugely important component in startup pitches, and are often overlooked by founders as they focus on the next big thing. Milestones represent significant 'derisking' moments in a startup's history. The MVP launch derisks your ability to build, your first few paying customers derisk your ability to generate revenue, your first big LOI derisks your ability to work with large corporate partners, etc. It's always worth reflecting on the moments in your startup's history where a particular threshold was crossed in that story.

Viewing a startup's milestones and roadmap as projects, and applying OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators), transforms goals into measurable outcomes. Each milestone becomes a clear target, with KPIs tracking progress. This approach breaks down the journey into quantifiable steps, ensuring alignment with overarching objectives. It offers a structured framework to assess risks, adjust strategies, and foster a culture of accountability and continuous improvement, making every achievement a step towards greater success.

Refresh all market data, financials, traction metrics etc. with the latest stats. Stale data undermines credibility. Examine if they have set clear growth goals and objectives Assess if their vision, roadmap and milestones seem achievable

Review the milestones to gauge past achievements and validations like product development and customer acquisition. Examine the roadmap for clear short-term and long-term goals, such as market expansion and user growth. Evaluate the startup's understanding of assumptions, risks, and challenges, and their strategies for testing, measuring, and addressing them. Ensure the roadmap reflects a realistic and strategic approach to achieving sustainable growth and profitability.

A vantagem competitiva sustentável, resultado de inovação tecnológica ou um modelo de negócio único, é vital para o sucesso a longo prazo. Funciona como uma barreira, permitindo entregas de valor inigualável, manutenção de margens de lucro elevadas e uma posição de mercado sólida. Avaliar a defensabilidade e a dificuldade de replicação dessa vantagem, seja por patentes, tecnologias proprietárias ou parcerias exclusivas, é crucial. Startups que demonstram claramente essa vantagem competitiva sustentável atraem mais interesse de investidores, evidenciando uma posição de mercado forte e um caminho para dominar seu nicho.

(a) The startup's operational plan must support scaling. A pitch deck from an e-commerce platform demonstrated their use of AI for automating customer service and logistics, indicating operational efficiencies that could easily scale with business growth (b) Strategic partnerships can accelerate growth. A pitch deck showcasing established partnerships with industry leaders or complementary businesses suggested the startup could leverage these relationships for rapid market expansion and credibility.

A startup's sustainable competitive advantage, often derived from technological innovation or a unique business model, is critical for long-term success. It acts as a moat, enabling the startup to deliver unparalleled value, sustain higher profit margins, and solidify its market position. Evaluating the defensibility and inimitability of this advantage—through patents, proprietary technologies, or exclusive partnerships—is essential. Startups that clearly demonstrate a sustainable competitive edge are more attractive to investors, showcasing a robust market positioning and a path to market dominance.

Showing traction can help understand the potential too; e.g., for B2B, when your product is in the hands of early testers/clients or, for B2C, the right DAU/MAU level or trend would be a good sign.

Consider the startup's alignment with current and emerging industry trends, its approach to innovation and technology adoption, and its potential for social impact or disruption. Reflect on the cultural and ethical values conveyed by the startup, including diversity, equity, and inclusion practices. Evaluate the startup's resilience and crisis management strategies, especially in response to unforeseen market shifts or global events. Lastly, assess the clarity and persuasiveness of the pitch deck itself—the quality of its presentation, the coherence of its narrative, and its effectiveness in communicating the startup's vision and value proposition.