top of page
Search

At the Core of Every Great Investor Pitch Deck is a Crystal-clear Value Proposition

Updated: Jul 31, 2023



In a well-constructed pitch deck, each slide builds on the previous slide to form a compelling narrative that communicates the value of the business and its potential for growth. The narrative is a linear progression and at the very heart of the story is the value proposition of the business. A rigorously defined value proposition is one of the most critical components of a GREAT pitch deck. On a standalone basis, the value proposition communicates the most important elements of the business in a clear and compelling way that’s easy for investors to ‘get’ and provides cohesion for the concepts and content of the pitch deck as a whole.


This article is part of our series on investor pitch decks where we delve into all aspects of successful pitch deck creation and execution utilizing our approach. Today, we discuss the elements that form a value proposition, the role it serves in an investor pitch deck, and the key considerations when formulating a value proposition.

What is a Value Proposition?

In its simplest form, a value proposition is an articulation of how your business generates value for your customers and why your business will succeed. In practice, they can take variety of forms, but typically express some or all of the following factors:


Target Customers

The specific customer segment that your business is targeting. This could be based on demographics or psychographics, such as age, income level, lifestyle, or interests.


Customer Needs

The needs of the target customers that your business is addressing. This could be a pain point that the customer is experiencing or a desire that they have.


Benefits

The benefits that your business offers to its customers are distinct from the features of the product or service that solves the customer's problem or fulfills their desire.


Differentiation

How your business is unique and better than your competitors. This could be based on factors such as price, quality, convenience, or customer experience.


Which of the various approaches you would use to formulate a proper value proposition may differ depending on the use case and personal preference. Here are a few examples:


Venture Hacks’ High-Concept Pitch

These high concept statements convey very little direct information, but rely on an already-understood industry concept or model for fast and easy comprehension.


Formula: [Proven industry example] for/of [new domain].


Example: Uber for the stock market.


Steve Blank’s XYZ Approach

Steve Blank’s approach captures the target customer, their needs, and the business’ service or product.


Formula: “We help X do Y doing Z.”.


Example: We help freelancers automate their invoicing process using our unique software solution.


Geoffrey Moore’s Value Positioning Statement

This approach to the value proposition is longer than the previous examples, but concise captures all key points in two sentences.


Formula:

For ____________ (target customer)

who ____________ (statement of the need or opportunity)

our (product/service name) is ____________ (product category)

that (statement of benefit) ____________ .

Unlike (primary competitors), (product/service) ________.

Example:

For internet users

Who enjoy books

Amazon is retail bookseller

That provides access to millions of books.

Unlike traditional book retailers,

Amazon provides a combination of extraordinary convenience, low prices, and comprehensive selection.


These methodologies are great for capturing and helping to refine your unique value proposition, but once you’ve defined your value proposition, what should you do with it?



The Role of the Value Proposition in Investor Pitch Decks

A strong value proposition is the beating heart of a compelling pitch deck, and serves as the fundamental concept that brings cohesion and coherence across all sections of the deck narrative. It is the common cause that unites all key areas. A solid, well-realized value proposition ties together slides such as the market opportunity, product/service benefits, and go-to-market strategy and makes a truly robust case for your business to potential investors. With this strong foundation in place, each section of your deck can work together to effectively communicate the value of your business and investment opportunity.


So should the value proposition be explicitly stated in your deck? This is a valid approach but we believe a more effective approach is to 1) transform it into a concise elevator pitch to allow fast comprehension and recollection for investors and 2) allow it to permeate throughout the rest of your content, letting it show between the lines of the rest of your pitch deck. By utilizing the value proposition as a sub-text or foundation, it can subtly reinforce your overall message, conveying strong underlying logic and creating a powerful impact on potential investors.


Crafting the Value Proposition

As we’ve seen, the value proposition is a critical component of any investor deck that both determines and ties together other sections in the pitch deck. For this reason, it is essential to define the value proposition before fine-tuning other sections of your pitch. At IGNITION Pitch Works, the value proposition is always the starting point for the impactful investor decks that we create. We conduct a structured analysis of your business to define and formulate your specific value proposition before moving on to develop your pitch deck narrative.


While this is one of the very first steps in developing your pitch deck content, we have found that it often creates outstanding value in and of itself. The reason for this is that many founders conceive their value proposition organically based on their understanding and experience of their business. However, IGNITION Pitch Works’ rigorous approach, developed over hundreds of decks, brings objective clarity and insights that frequently improves upon existing value propositions or truly defines a client’s value proposition for the first time.


TL;DR

A great pitch deck is not just a collection of slides but a well-crafted narrative experience that tells and impresses upon investors the potential of your business and why it is worth investing in. At the core of this narrative should be a crystal-clear value proposition which captures how your business generates value for its customers and why it will succeed. A comprehensive value proposition will succinctly express who your target customers are, what their needs are, the benefits you offer, and how you differentiate yourself from your competitors.


The value proposition plays a critical role in investor pitch decks as it anchors and provides cohesion for the concepts and content of the pitch. It ensures that each section of your pitch deck works together to communicate the value of your business to potential investors so that the narrative can make a compelling case for investment. While some may explicitly state their value proposition in their pitch deck, a more effective approach is to integrate it into your deck as an elevator pitch that appears between the lines of the rest of your presentation. By crafting a clear and concise value proposition, you can ensure that your pitch deck tells a compelling story that resonates with investors and motivates them to invest in your business. Failure to sufficiently define the unique value proposition of the business is one of a number of common mistakes we see (and are happy to fix! when founders take the DIY approach to creating their investor pitch.


Ready to capture or upgrade your value proposition?


IGNITION Pitch Works' dedicated teams of experienced MBA business strategists, copywriters, financial analysts, and designers use our proprietary pitch deck development methodology to deliver investor pitches that deliver extraordinary ROI and exponentially boost our clients’ chances of funding success.


What are you waiting for? Get in contact and let’s get you ready to raise!

コメント


コメント機能がオフになっています。
bottom of page