Momentum pulled off what each entrepreneur goals of: Final 12 months, it closed a lead investor for its seed spherical — which our own Ron Miller covered at the time — with out even making a pitch deck. A minor investor in its earlier spherical had been conserving 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 suitable alternative 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 very useful for organizations with complicated gross sales processes with a number of stakeholders, decision-makers, and hand-over factors.
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Slides on this deck
Momentum’s seed deck comprises 19 slides:
- 1 – Cowl slide
- 2-4 – Downside slide in three components
- 5-7 – Answer slide in three components
- 8-10 – Product slide in three components
- 11 – Market timing slide (“why now”)
- 12 – Traction slide
- 13 – Consumer validation slide
- 14 – Market measurement slide
- 15 – Crew and investor slide
- 16 – “The ask” slide
- 17 – Placeholder for demo
- 18 – “Mic drop” slide — buyer testimonial
- 19 – Thanks slide
3 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 preserve the stream of the pitch. It additionally makes the deck very easy to eat with out the good thing about the corporate’s founder including context to the story, which is improbable.
Nice ‘ask’ slide
Every time I work with startups, I implore them to include an “ask” slide, and whereas not a whole slam dunk (extra about that in only a second), Momentum’s is without doubt one of the greatest I’ve seen up to now. I like the readability: We’re elevating $4 million. That may give us 18 months of runway, and we are going to do this stuff 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 large 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 numerous 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 accomplished 5 years from now?” Momentum’s deck solutions that query fantastically, together with parts of the macroeconomic panorama (“the arrival of distributed work”) and a shift in how gross sales are accomplished. I notably get pleasure from that the corporate doesn’t point out COVID-19 immediately; don’t fear, the traders shall be excruciatingly conscious that the world has modified and that conduct shifts are more likely to be everlasting.
The mic drop
In journalism, we regularly use one thing we name the martini glass fashion of writing: You assume that the reader will sooner or later cease studying, so you set the essential information on the high 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 ultimate 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 numerous founders will run out of steam somewhat 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 prospects. Traders 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 accomplished otherwise, together with its full pitch deck!