This is one of the most requested questions I’ve received since starting Playing with Unicorns. People want to know “How do I build the perfect pitch deck to raise funds?”
Kelly Anne Tully, Head of Platform and Investor at FJ Labs, joins to share her tips. Kelly has helped many of our portfolio companies raise funds. Today, Kelly and I discuss how to create the perfect pitch deck.
Storytelling
The saying “beauty is in the eye of the beholder” doesn’t apply to pitch decks. Visually pitch decks can differ. But content-wise all good pitch deck contain the same things. So it’s important to know what to include in a deck.
Essentially a good pitch deck tells the origin story, the journey, and vision of the startup. Most founders hate storytelling, yet the art of storytelling is an important skill. You don’t have to be Dostoevsky. But you should be able to tell a cohesive and captivating story.
Investors want “a founder who is a visionary who is fantastic at execution.”
When to raise?
Always raise when you don’t need the money. Investors can sniff desperate founders. As a founder, you never want to be in a position where your desperation leads to terrible deals.
You want to have leverage. To do that you need traction. Traction is what separates concepts from execution.
Once you have traction, find investors that invest in your category. Investors will not fund companies that are in direct competition with one of their portfolio companies. Hence don’t spray and pray. Be methodical. Create a pipeline that helps you track what stage you’re at with all the investors.
When raising always aim for 12+ months. I recommend raising for 18 months with a buffer.
A perfect pitch deck will convince investors that you can go from zero to one.
“Winners are not the first entrants, they are last entrants who got it right. Think of Google or Facebook”
No(s) are normal
One important thing to remember is that getting nos are normal. Every successful startup has received more nos than yes.
You must not take rejections personally. The sooner you realize this the easier it will be to move on.
Must have slides
The very first slide should say who you are and what you do. Then start with a team slide to introduce your awesome crew. This immediately familiarizes the investors with the product and the people behind it.
Intro: What do you do.
Team: Who you are and tell your story.
Problem: Contexualize the problem you’re solving.
Market opportunity: TAM should be greater than $5 bn.
Solution: Therefore, we are building X to fix Y.
Traction: Include churn, GVM, MRR, ARR.
How does it work: Have product images showing how it works
Competition: Who are they? And what’s your differentiator? Is this a blue or red market?
Business model: How do you plan to make money today v. tomorrow.
Unit economics: How much value does each unit generate for the company. LTC:CAC should always be LTV:CAC.
Growth & marketing: How do you plan to grow?
Ask: Don’t put valuation. Instead have how much you’ve raised and from who. And how are you planning onspending the money.
For your reference I am including the slides Kelly used during the episode.
If you prefer, you can listen to the episode in the embedded podcast player.
In addition to the above Youtube video and embedded podcast player, you can also listen to the podcast on:
I love to travel light and love big screens and long battery life. Those things were largely incompatible until the LG Gram. It has a 17” screen with a 16:10 ratio, to see more vertical content, yet weighs only 2.98 pounds.
I had the 2020 model, but it was underpowered. It was not powerful enough to run OBS to stream Playing With Unicorns or to play Age of Empires II: Definitive Edition on my external 4K monitor. As a result, I often ended traveling with my bulkier MSI GS75 notebook, which is blazingly fast, but cooked my legs and only had a 90-minute battery life when doing anything intense. Worse I often traveled with both notebooks.
The 2021 Gram 17 now has an 11th Gen Intel Core i7 which is 25% faster than last year’s edition and the Iris Xe graphics card is almost twice as fast as last year’s integrated graphics card. I am happy to report it is now (barely) powerful enough to do everything I need and is the only notebook I travel with. My MSI notebooks have been transformed into desktops and run my home office setup.
The notebook is rated for an extraordinary 19.5 hours of battery life and I routinely get over 12 hours on it. I find the 1Tb SSD rather small but solve the issue by not synching all the files from my Dropbox. The only disappointing part is the subpar speakers. Other than that, it is the perfect notebook. On top of that it is reasonably priced at $1,796.
All that to say if you are looking for an amazingly light, yet large and powerful notebook with a seemingly infinite battery life get the 2021 LG Gram 17!
I am excited to announce that we are promoting Arne Halleraker to partner on our team at FJ Labs.
Choosing your partners is important. When I was building my own startups, I looked for investors who trusted me and my vision for my companies, and who would have my back. People who understood the vision and could see beyond where the business is today, to what the business could become. Venture is also a long-term game, and choosing strong partners is just as essential to FJ Labs.
Arne has been part of our team since the beginning. In early 2016, we moved into the FJ Labs office, and we were very much a startup. We got a space to fit the growing SellIt team of 30, plus our initial investment team of 4 people. However, between signing the lease and moving in, SellIt was acquired by Letgo, so we moved into a space designed for 50, with 4 people. Arne joined in these early days, before the time of conference tables, plants or Nespresso machines. All we had were 4 desks, a ping pong table and a plan to prove that mine and Jose’s approach to angel investing could be institutionalized.
Since then, Arne has proven his value and commitment to FJ Labs. He has been co-leading our investment team for the past 3.5 years, overseeing our sourcing, assessment, closing and follow-up for our portfolio. He has also proven himself to be a great investor; even his first investment recommendation has proven to be one of our emerging winners from the first fund. Arne has led the charge on more than a hundred of our deals, touching all industries. As an engineer (he graduated with a Msc from the Norwegian University of Science and Technology), he has special expertise in the B2B marketplace space (e.g., logistics, construction, materials) as well as the food industry and green tech. He also has a passion for gaming startups (but of course, I still crush him in RTS games).
When Arne joined FJ Labs in 2016, we had completed a few early investments. With Arne and the team’s help we have now completed more than 460 investments across two funds, and we have validated that angel investing can be institutionalized while maintaining amazing returns. We are optimistic about the future of tech and will continue to hold our place as the leading marketplace investors. Jose and I both see Arne as an important part of that strategy, and we are excited to welcome him as a partner at FJ Labs.
5 quick facts about Arne:
Born and raised in Norway, he can trace his family line back more than 1000 years to the guy with the pretty hair
Together with Rochelle, he has the cutest dog in the world (8 lbs of fluff), answers to Dumpling
A fan of the outdoors, he has snowmobiled in Svalbard, scuba-dived in Thailand, kite-surfed in Turks and Caicos and gone monkey-watching in the forests of Uganda
Big nerd. I mean, huge. He was playing World of Warcraft before it was cool. Yeah, I know, still not cool.
Last week Alpha Capital, a SPAC company that FJ Labs co-sponsored, went public. We rang the bell and it was beautiful.
Alpha Capital is a formed blank check company that intends to seek a business combination with a Latin American-focused technology business that will benefit from the founders’ experience growing and operating businesses in this industry throughout Latin America.
Today’s episode is special because Jeff Weinstein interviews Rahim Lakhani, the CFO of Alpha Capital. Most of you will remember Jeff from Episode 13: What’s the deal with SPACs. He is the resident SPAC boy at FJ Labs.
Rahim has an illustrious record of leading finance, strategy, and sales from Anheuser-Busch InBev to Offerpad, and now Alpha Capital.
Why Alpha Capital is going after LATAM?
Fast adoption of technology in the region.
There is a lack of capital injection.
Lots of expertise in the market on the Alpha team.
“There’s high internet penetration but low economic penetration.”
Must-haves for launching a great SPAC
You must find good partners. Partners include co-sponsors, law firms, bankers, and any service provider. There is uncertainty involved in SPACs and for that reason trust is important. So you must get to know your partners ahead of time.
Make sure your vision and incentives align with your partners. A great SPAC is not a get-rich-quick scheme, it is a long-term game played by long-term people.
Solve a real problem. It sounds like a simple task but it’s often forgotten.
Future of SPACs
There has been an increase in SPAC adoption because people like Chamat Palihapitiya have articulated the upsides well to other investors. Keep in mind that the market is rapidly evolving. Three key takeaways about the future of SPACs:
There will be a market correction after two years. All the SPACs that succeed in consummating will become leaders in the market. These two years will help differentiate elite investors from mediocre ones.
There will be a tiering of SPACs: tier 1, tier 2, tier 3 similar to banks.
Tier 1 companies will want to pair up with tier 1 sponsors.
The obvious winners of successful SPACs are venture funds, service providers, and private companies. But the non-obvious winner is society because we will directly benefit from the increased speed of innovation, especially if companies with long-term cash flow, low probability of success, but high impact succeed with their products.
If you prefer, you can listen to the episode in the embedded podcast player.
In addition to the above Youtube video and embedded podcast player, you can also listen to the podcast on:
I have been in awe of the color of the water in Turks ever since I set eyes on it. And no place in Turks is more beautiful than the jaw dropping ridiculous beauty of Half Moon Bay. I had the pleasure of kiting there last Sunday morning, and it was majestic!
I am not sure why I love kiting so much, but there something about needing to focus to deal with two fundamental elements: air and water, that creates a meditative Zen-like state. Beyond kiting’s innate ability to create flow states, I love the sensation of gliding on the water and soaring through the air. I find it reminiscent of the sensations of skiing in powder, another of my favorite sports.
I felt compelled and inspired to make a video tribute to Sunday morning’s epic session.
