Are you wondering how to send a pitch deck to friends and family?
Friends and family will be an incredibly pivotal part of your journey as an entrepreneur. This is true whether you actually directly raise money from them or not. If you can raise from them, it can be some of the best capital you can bring in. Here’s how to approach it.
Pitching Friends & Family
There are three reasons to pitch and send a pitch deck to friends and family:
- For practice ahead of pitching angel investors or VCs
- For raising from from them before going onto other rounds
- For gaining introductions to their friends and family who may fund you
Even if you don’t raise from them, this is your core support group. Entrepreneurship can be lonely. You are really going to appreciate having them in your corner on this journey. For them to do that it really helps for them to get what you are doing, get excited about it, and understand some of your challenges.
When thinking about how to send a pitch deck to friends and family, keep in mind that just practicing with them can really help you find holes in your pitch, polish it and perfect it, before approaching the investors you really want.
You may also be surprised at what introductions they can make for you too. The network around this group is hundreds and thousands of people. They may be able to open many doors for you, far beyond just the money.
Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
The Place Of The Friends & Family Round
When it comes to the series of fundraising rounds the friends and family round comes first. This is typically your pre-seed round.
If your family is well off, then they may have the financial capacity to participate in your Seed as well. The majority don’t.
Whatever their level of participation, official or not, raising money from friends and family is significant to future investors. It shows that others believe in you, your mission and business. It shows that those who know you best really believe in you. You can imagine the opposite is true too.
Who Are Friends & Family?
Who counts as friends and family? This is an important piece when addressing how to send a pitch deck to friends and family.
- Immediate and extended family members
- Coworkers and former coworkers and bosses
- College classmates and professors
- Strong social media connections
- Friends of friends, family of friends, and friends of family
The Pros & Cons Of Raising From Friends And Family
There are both potential pros and cons to raising from friends and family.
The most obvious advantage of raising from this group is that it can be the fastest and easiest money you can raise. They should already know you, like you and trust you, and that is 90% of the battle.
In many cases this group may also be the most lenient when things aren’t going according to plan. They may be more patient and hands off.
The opposite can also be true, and that can be one of the biggest cons of raising from this group as well. If the business isn’t going well then these relationships can be strained. Your business is important to you, but these relationships can be even more valuable.
If these raises are messy, they can complicate ownership structures and make future raises more complicated and expensive than they need to be.
Curating Your Pitch Deck For Friends & Family Rounds
If you are serious about raising from this group of potential investors then it is worth curating your pitch deck for them.
Consider what may be most important for them to learn, and less so. Since you already have a personal relationship with them, or at least a very warm introduction, this is much less about proving your individual capability, and even track record or returns, as it is telling a story that resonates with them personally, and selling them on the dream.
How To Share & Send Your Pitch Deck To Friends & Family
If this is a test run for raising from more professional investors then you may want to do a full trial run with how you plan to share your pitch deck with them. That may be via email or Google Drive.
Whenever possible you also want to be presenting this in person as well, just as if you were meeting with any other investor. You may also use a video chat service with screen sharing capability or this. Like Google Meet.
If you want to raise from your friends and family network then it is also smart to reach out using the ways you normally communicate with them. Or at least through the mediums they use most. That may include texting, WhatsApp, or by sending private YouTube or Vimeo slideshow links.
You may find interesting the video below where I cover in detail how to send a pitch deck to investors.
After sharing and presenting, collect and evaluate all the feedback you get. Tweak your pitch deck and presentation as you see fit to optimize it for future pitches.
If you still need to raise from other investors, then get busy building your target list of ideal investors. Then begin repeating sharing and pitching for real this time.
Then it is about getting to work and delivering on the results you promised. Put that money to great use achieving the next milestones you vowed to conquer. Once you do that more capital will open up to you. Your initial investors will want to put in more capital, and they will tell others that you did what you said and were able to execute. Future investors will also now have references to check in within.
Hopefully this post provided you with some perspective as you are looking into how to send a pitch deck to friends and family.
You may find interesting as well our free library of business templates. There you will find every single template you will need when building and scaling your business completely for free. See it here.