Have you decided to start a new company? The next step is to convince investors your business idea is worth funding. A solid financial plan in your pitch deck could be the straw that tips the scales in your favor. This slide is present in 92% of all pitch decks, yet only 0.01% of them manage to succeed.
How do you stand out in that crowd? You must transform your financial plan from a silent financial summary slide to a persuasive powerhouse! Learn more about how to present your financials in a way that will encourage investors to jump on board!
Very early-stage startups might lack historical financial data and downplay the importance of a financial summary slide. However, it is a risky strategy. Financials in your presentation act like a translator. This slide transforms your exciting idea into the language investors understand the best – numbers. The well-crafted financial slide provides responses to crucial questions:
You must demonstrate your business will generate revenue and become profitable. Financials outline your plan for making money and how much you expect to spend.
Financial forecasting shows projected growth, whether that's in customers, sales, or market share. This helps convince investors that your business has the potential to be big.
Financials allow you to explain how you will use the money you receive. Transparent budgeting for startups builds trust with investors and shows you have serious business intentions.
Unless you have a revolutionary solution, investors will wonder whether your idea is worth their money. A venture capitalist or an angel investor reviews hundreds of startups before choosing one to support. What are they looking for in an investor pitch deck?
Every investor is keen on making money. A financial plan reveals a company's projected growth trajectory, future profitability, and potential market share. This information helps investors understand the likelihood of getting their money back with profits.
Investors use numbers to evaluate a company’s financial health and its ability to generate revenue and manage expenses. This includes factors like profitability, burn rate (rate at which cash is used), and debt levels.
Financials outline how you plan to make money. They detail revenue streams, cost structures, and spending plans. This financial modeling allows investors to assess the viability of the business.
Investors are not driven by passion alone. So, how do they make decisions? Let’s see what they say about pitch deck financials!
"Numbers don't lie. Strong financials build trust and make investors believe you can navigate the challenges ahead."
– Dave McClure, Founder of 500 Startups (Angel Investor)
"Financial fluency is key. A strong grasp of financial principles inspires confidence in your ability to manage the company's resources effectively and navigate the financial landscape."
– Asha Jadeja, Managing Director at Dot Edu Ventures (Angel Investor)
So, what should be shown in this crucial slide? There are so many metrics that can be added to your financial presentation that it is easy to get lost.
1. Financial summary slide
This slide paints a big picture of your company's financial health and future potential. What can you include here?
Balance sheet. Outline assets, liabilities and equity.
Cash flow statement Detail all cash inflows from current business operations.
Growth projections. Create a clear chart that shows historical or projected growth of your company and highlights key milestones achieved.
Profitability timeline. Present a clear break-even analysis (important for all startup stages).
Investment ask. State the capital requirements you seek and briefly mention how you will allocate the funds
This slide must immediately grab attention. Imagine you have only 30 seconds for this! So use 1-2 key metrics and striking visuals.
2. Startup financial projections slide
This slide is your roadmap that describes your projected financial performance for the next 3-5 years.
Revenue model. Clearly outline the different ways your company will generate revenue. Use visuals to make it more informative.
Cost structure. Break down your expenses (e.g., personnel, marketing, development) and showcase how they will scale with your growth.
A profit and loss statement (P&L), or income statement. Summarize company's revenues, expenses, and profits/losses over a given period of time.
Financial projections. Present key financial metrics like projected revenue, expenses, and profit for the next few years using clear visuals.
Key assumptions. Briefly mention the underlying assumptions behind your projections (e.g., market growth rate, customer acquisition cost).
Based on this slide, investors make startup evaluation. So, make sure you use only true-to-life numbers that you are ready to prove further if requested.
3. Financial metrics and KPIs slide
This slide goes beyond basics and includes specific financial health indicators. The main ones are:
Customer Acquisition Cost (CAC). It shows the cost of acquiring a new customer and demonstrates how efficient and scalable your marketing efforts are.
Daily Active Users (DAU). Especially important for early-stage startups, DAU reflects daily user engagement.
Monthly Active Users (MAU). Shows the number of users who interact with your product/service in a month.
Lifetime Value (LTV). The total revenue a customer is expected to generate over their lifetime. This metric helps determine the long-term profitability of your customer base.
Return on Investment (ROI). Measures potential financial gain for investors.
Burn Rate. The rate at which your company spends its capital before achieving profitability. This metric is crucial for understanding your cash runway and future funding needs.
Make sure you use relevant metrics for your startup.
What should an early-stage startup show?
Startups with no revenue should focus on traction and user engagement (e.g., Daily Active Users (DAU), Monthly Active Users (MAU), and Customer Acquisition Cost (CAC)).
What should an established startup show?
Include traditional financial metrics like customer lifetime value (CLTV), churn rate, and return on investment (ROI) alongside growth metrics.
When crafting a financial slide for your pitch deck, remember the golden rule of three: precision, visuals, and clarity.
Precision means focusing on the most impactful financial metrics relevant to your stage and business model. Don't overwhelm investors with intricate details – prioritize key growth figures and essential financial projections.
Visuals include charts, graphs, and infographics. They transform dry data into an engaging story. Clear and well-designed visuals make complex information easier to scan and leave a lasting impression.
Clarity is presenting your financials in a way that's easy to follow, with concise explanations and a logical flow.
These principles will turn your financial slide from a boring list of numbers into a powerful tool.
A good example to follow is a Series-B pitch deck of Moz, a company that provides marketing analytics software and SEO tools. When it needed funding, the persuasive financials allowed the company to raise $18M! The focus was on eye-catching colors and numbers arranged in easy-to-scan charts and graphs. A complicated financial summary was delivered in a very user-friendly manner. Today, over 500,000 businesses use Moz’s products!
You may work hard on your financial pitch deck slide, but it fails to catch the investor’s attention. Why does it happen?
Overloaded slide. Do not add too much data, as it makes the slide hard to digest. Stick to essentials and use graphs and charts for clarity.
Unrealistic projections. Overly optimistic forecasts seem naive to experienced investors. Rely on tangible data and logical assumptions.
Absence of key assumptions and historical data. Lack of context creates skepticism about the data. Make all your numbers transparent and easy to check.
Mismatched data. Inconsistent financial figures create doubts. Double-check all numbers before you showcase them.
Generic metrics. Using irrelevant metrics reduces clarity. Select metrics that suit your specific business model and industry.
Poor design. Cluttered slides distort the message. Ensure readability with a clean layout, consistent fonts, and colors. Consider professional help if needed.
You will find plenty of online tools and software to put together a strong startup financial projections slide. Here is just a short list of what you may find helpful:
Microsoft PowerPoint will enable you to create charts and add visuals through add-ons like ThinkCell and Data Analyzer. Google Slides is another software for charting that can be integrated with Google Sheets for data imports. You can consider Prezi for dynamic presentations.
Looker Studio, a free and user-friendly platform for creating visually appealing dashboards and reports. Another option is Chart.io, a free online tool for creating basic charts and graphs. There is also a paid alternative, Tableau, for advanced interactive dashboards.
Platforms like Slidebean, Pitch and Beautiful.ai offer a variety of pre-designed pitch deck templates with financial slide options.
You may visit platforms like Startup Grind to study pitch deck examples for inspiration.
The main thing to remember is that strong financial slides are more than just numbers. They are a glimpse into your business's potential and future success. It is your chance to demonstrate you know the basics of strategic financial planning and will not waste funds.
However, do not forget that impressive metrics are only half the battle. You must also skillfully arrange them into slides that effectively convey your message visually. This is where a professional touch can make a change. Our expert team has extensive experience in pitch deck design services across all industries. Multiply your chances of success by reaching out to DreamX.
How to create a killer pitch deck financials slide
Alexandr is the founder and CEO of DreamX, a company transforming the digital design landscape. Under his guidance, DreamX consistently delivers innovative and user-focused UX/UI solutions.
Table of contents
Role of financials in a pitch deckWhy investors care about financialsThe impact of well-presented financials on funding decisionsKey financial slides in a pitch deckBest practices for creating financial slidesCommon mistakes to avoidTools and resources for building financial slidesWrapping UpGet weekly updates on the newest design stories, case studies and tips right in your mailbox.
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