Momentum pulled off what each entrepreneur goals of: Final 12 months, it closed a lead investor for its seed spherical — which our personal Ron Miller coated on the time — with out even making a pitch deck. A minor investor in its earlier spherical had been holding a detailed eye on the corporate, and when it talked about it was elevating a spherical, the investor swooped in and satisfied Momentum it was the fitting selection to steer the spherical.
As soon as a lead was secured, Momentum created a pitch deck to fill out the spherical. I spoke with the corporate’s CEO to be taught extra about the way it raised cash with out a deck, and he was gracious sufficient to allow us to share the deck that accomplished the remainder of the spherical.
Momentum is a B2B firm that creates gross sales course of automation instruments that make it simpler to collaborate over Slack, which is particularly useful for organizations with complicated gross sales processes with a number of stakeholders, decision-makers and handover factors.
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Slides on this deck
Momentum’s seed deck accommodates 19 slides:
- 1 — Cowl slide
- 2-4 — Downside slide in three elements
- 5-7 — Resolution slide in three elements
- 8-10 — Product slide in three elements
- 11 — Market timing slide (“why now”)
- 12 — Traction slide
- 13 — Consumer validation slide
- 14 — Market measurement slide
- 15 — Staff and investor slide
- 16 — “The ask” slide
- 17 — Placeholder for demo
- 18 — “Mic drop” slide — buyer testimonial
- 19 — Thanks slide
Three issues to like
Momentum efficiently raised a $5 million spherical with a good looking and easy deck. It took the strategy of breaking apart a few of the key slides (the issue, resolution and product slides) into 9 completely different slides. It actually works on this specific deck, and it helps maintain the movement of the pitch. It additionally makes the deck very easy to devour with out the good thing about the corporate’s founder including context to the story, which is incredible.
Nice “ask” slide
Each time I work with startups, I implore them to incorporate an “ask” slide, and whereas not an entire slam dunk (extra about that in only a second), Momentum’s is likely one of the finest I’ve seen thus far. I really like the readability: We’re elevating $4 million. That may give us 18 months of runway, and we’ll do these items with the cash. It makes it actually clear for traders to contextualize what the corporate is about to do.
Makes the pitch really feel present
One of many huge issues traders will ask themselves is, “Why now?” — particularly within the context of an organization like Momentum. Salesforce has been round for a very long time, and there are lots of different gross sales instruments on the market. The questions that spring to thoughts are, “Why didn’t this occur 5 years in the past?” and “Why can’t this be performed 5 years from now?” Momentum’s deck solutions that query superbly, together with parts of the macroeconomic panorama (“the arrival of distributed work”) and a shift in how gross sales are performed. I significantly take pleasure in that the corporate doesn’t point out COVID-19 straight; don’t fear, the traders will likely be excruciatingly conscious that the world has modified and that habits shifts are prone to be everlasting.
The mic drop
In journalism, we frequently use one thing we name the martini glass fashion of writing: You assume that the reader will sooner or later cease studying, so you place the vital information on the prime of the article. That’s why you typically discover the who, what, when, the place and the way early on, with the “why” taking over the majority of the evaluation of a bit. “Wait,” I hear you cry, “that seems like a triangle, not a martini glass!” Appropriate — the flat stem of the glass represents a punchline, a closing parting volley that helps the reader pull all of the items collectively. Today, you’d name it the mic-drop second.
That’s what Momentum does so properly on this deck — the primary few slides set the stage, and within the penultimate slide, the corporate provides a buyer testimonial. That could be a nice thought as a result of lots of founders will run out of steam a bit of bit towards the top of the pitch. The very last thing you need to do is to launch into the investor Q&A session from a spot of “meh.” By bringing the dialog again to a buyer testimonial, it reinforces the affect the corporate has on its clients. Buyers know that that’s a uncommon and hard-to-achieve factor, so it actually units the tone for the dialog to come back.
In the remainder of this teardown, we’ll check out three issues Momentum might have improved or performed in another way, together with its full pitch deck!