#DreamitLive with Ron Gula: Five Slide Pitch Deck
In our most recent episode of DreamitLive, Managing Partner Steve Barsh spoke with Ron Gula, President and Co-Founder of Gula Tech Adventures. In the episode, Steve asked Ron about his “five slide pitch deck.” Ron has the investor perspective as the President of Gula Tech Adventures, but also can empathize with the founder as former founder of his own company, Tenable. This is what each of the five slides may include:
First Slide: The “What”
The first slide answers the question that puts entrepreneurs in action: What problem does your solution solve? Many founders fail to open with the answer to this question. Instead, Ron notes that a lot of them talk about their technology or the market. The technology and the market will not get the investor excited. The investor wants to see that you as the founder are passionate about this problem, possibly as a result of personal experience, and now have come up with a way to help others. But, the founder must be specific in presenting the problem. The “what” can help differentiate your company from your competition. Ron notes that saying something generic, for example, that you’ve solved cybersecurity is too general to get an investor excited. If your “what” is generic, your company may risk being defined by your competition. If your solution is truly innovative, you won’t have to worry a great deal about direct competitors.
Second Slide: The “How”
This allows you to describe how you do your “what.” This must be done, though, in a way that is succinct and direct. This is your opportunity to highlight exactly what your advantages are. Ron mentions in the episode that answering your what, then your how, are what reel the investor in. Take this opportunity to answer many basic questions without being evasive. Ron advises to be direct, own your solution, what data it works on, and how it is deployed.
Third Slide: Prove it
Show that your technology does what you say it will. You can do so by providing a demo you did for a customer or a patent. This shows the investor what exactly you will be doing with the funds, and that their money is going towards something valuable.
Fourth Slide: Funding
How much money are you planning to raise and what will you do with it? Founders should have some sort of plan to allow the investor to understand how long their funds will last you. More importantly, what state will your company be in when you have done so? Ron says, “The number one thing I am evaluating as a seed investor is: Will institutional investors be beating down our door to invest in this company at a higher price before these funds run out?” How will you grow your company to provide value for your investors? Answer this by giving the investor some sense of sales or marketing plan. Will you be hiring developers or sales people? How much will you invest in marketing and other capital intensive resources? Investors like Ron want to know you will use their funding to grow, and that you have a plan to do so.
Fifth Slide: Vision
This five slide method has allowed you to hook your potential investor in slides one through four. Now is the opportunity to leave them excited about the company. Show a schedule and milestones. Mention future fund raising. Ron’s tip is to envision what an investor may say about your company to others, about your core message, goals, and how you will achieve these goals.
This five slide format allows founders to convey their message in a way that is interesting and effective. Only focus on what founders need to hear to make their investment decision. Ron advises not to stray away from the core message by including items such as a list of advisers and board members, biographies of the founders, or competition slides. Instead, he recommends to put these in an appendix or include them in a separate, more in depth presentation. It is basic, but by only focusing on these five critical slides, Ron hopes to help founders present the idea they are so passionate about as an attractive investment opportunity. Read Ron’s article on his five slide pitch deck here.