What is the why now slide in a pitch deck? The why now is one of the most important parts of any pitch to investors. How can you best convey it in your pitch deck to raise the funding and support to fully capitalize on the potential your startup has?
Nailing this one factor is key to closing any form of sale. Including your end customers, bringing in co-founders, advisors, and key hires. As well as closing investors to fund your business and provide other valuable support.
Why is this so critical? How do you present this in your startup’s pitch deck to get the funding your company needs right now?
The Ultimate Guide To Pitch Decks
Here is the content that we will cover in this post. Let’s get started.
- 1. Why Now Is So Important
- 2. The Why Now Slide in a Pitch Deck
- 3. Do You Need A Why Now Slide In a Pitch Deck?
- 4. What To Include On Your Why Now Slide
- 5. What If You Don’t Include A Why Now Slide In Your Pitch Deck?
- 6. How To Convince Investors Now Is The Time To Invest In Your Startup?
- 7. Your Cover Slide
- 8. The Problem Slide
- 9. The Solution Slide
- 10. Market Size
- 11. Competition
- 12. Competitive Advantage
- 13. Traction
- 14. Customers
- 15. Financial Forecasts
- 16. Amount Being Raised & Other Investors
- 17. Team & Advisors
- 18. Closing Slide
- 19. Summary
Why Now Is So Important
Why is your ‘why now’ so critical, especially in startup fundraising?
Establishing why now is so important makes all of the difference between your product and investing in your venture being a nice to have, versus establishing real urgency for them to act now.
Most people don’t take action until it is really needed. Either because of a pending pain point for themselves, the projected outcome is so compelling, or from a fear of missing out. Or all of these.
A strong why now will make all the difference in getting prospective investors to take action and eagerly want to fund you.
See How I Can Help You With Your Fundraising Efforts
See How I Can Help You With Your Fundraising Efforts
It can also shift the negotiating power in your favor so that you can gain more control in negotiating various clauses, the valuation, and how much you’ll give up in this round.
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 Why Now Slide in a Pitch Deck
The why now is a staple of every sales presentation, from simple ads to sales presentations, and other pitches.
That’s why sales discounts, and limited-time, or limited-volume offers exist, and have been used for so long.
So, how do you bring this all together in a fundraising pitch deck for your startup?
Do You Need A Why Now Slide In a Pitch Deck?
In most proven pitch deck templates for pitching venture capital investors, there isn’t a separate ‘why now’ slide.
You can choose to include one. Though you must be careful not to deviate from a proven flow and order of slides. Experienced investors are looking at your pitch deck flow and order as much as they are the content on your slides. Don’t blow it all by going too far out of the box. Save your innovation and disruption for your product and business model.
What To Include On Your Why Now Slide
If you do have a why now slide in your pitch, then what do you put on it?
Remember, that the key to a successful and fundable pitch deck, and each of its slides is to keep it extremely simple and fast to digest.
With this in mind, you would just use one sentence or up to three supporting bullet points. Use a large font.
What If You Don’t Include A Why Now Slide In Your Pitch Deck?
So, if you don’t have a separate why now slide in a pitch deck, how do you convey this essential point, and instill the urgency needed to get investors to rush to give you a term sheet or check?
You should certainly be pushing the why now narrative in your verbal pitch. Whether this is in person, over a video call, or a video version of your pitch deck.
Presenting with passion and conviction also psychologically transfers this why now need.
You can also include a quick recap of your presentation and facts at the end of your pitch to establish and summarize the why now, and make your verbal call to action.
With this important point in mind, you can also strategically set up and lead investors to why now is the time to do this. It can be implied and shown through many of your other pitch deck slides. Leading them to the natural conclusion that they must act now.
So, how do you do this?
How To Convince Investors Now Is The Time To Invest In Your Startup?
By leveraging all of your other slides, you can naturally plant your why now and urgency in the minds of your investor audience.
Here are some of the ways that you can do that through your other main pitch deck slides.
Your Cover Slide
You have very limited messaging space on your pitch deck cover slide. Though, if appropriate and a part of your overall theme, you make work this urgency into your tagline or slogan on this slide.
Your visuals, including a modern logo, can help mentally implant this as well.
Even ahead of this slide, you may drop your why now into your cover letter, email introduction, and investor updates.
The Problem Slide
This is one of the best slides for conveying your why now.
Ideas are cheap. There are too many nice-to-have products and inventions. Too many solutions looking for a problem and market.
Smart and experienced investors know that the best startups are built on existing ‘hair on fire problems’.
This is your chance to show why your product is needed, and right now. That there is already a demand, that someone is going to fill, and it is a huge opportunity for those that act on it fast.
The Solution Slide
Coming at it from the opposite angle, you can use your solution slide to show the big benefit you are going to deliver to those that are clamoring for this exact solution right now.
Your investors can get in and be a part of providing that solution, and enjoy the financial rewards as well. Or they can sit on the bench and watch their own competitors win the space, reap the rewards, and make that impact on the world.
Be sure to keep this urgency in mind when choosing which benefit to highlight on this slide.
You should already know that market size is one of the top criteria that investors of all types are looking at when evaluating a pitch and investment opportunity.
You can dig in deeper here to imply why now is the time to participate. Perhaps this is a brand new space that is being created, and someone gets to create and own it if they act first.
Or perhaps this is a market with an incredible growth trajectory over the next ten years which will automatically multiply their investment, even if you just retain a modest share of this market. It could be exactly what they need to save their own portfolio.
Don’t shy away from or try to hide your competition. Leverage them for your own benefit and value, and to make a compelling argument instead.
You may either have the first mover advantage in a space that will get busy and could poise you for a great acquisition.
Or you could have the second mover advantage after you show the market has been proven, and other investors have been getting into it.
Space is a great example of this. For instance, needing an internet connection in space to facilitate all the other startups that are working on space projects. Or new industries which are just now being made possible thanks to the internet and real-time data being enabled in space.
This slide gives you both the chance to show your overall competitive advantage, as well as why now is the time to invest big in your business.
Perhaps this is the opportunity to jump into something that was never possible before and is going to be huge. Like when cannabis licenses first came out. Or, like the JOBS Act enabled crowdfunding. Or virtual medicine in COVID.
Why is now important to get ahead and establish the lead and dominance of this space?
Or why is now the time to hit the gas and expand and scale on the foundation you’ve built in this space? The why now slide in a pitch deck will answer these questions.
The Why Now slide is, undoubtedly, a critical slide that can entice investors to schedule a follow-up call. But, if you need more information about what makes a killer pitch deck presentation, check out this video I have created.
Traction is another of the most important metrics for startup investors. Your ability to drive growth in the past is their best indicator of future performance, the value you can create, and the returns that they can expect.
Use this slide to show them why is now a good time for them to get in on the curve.
Show what risk you have removed, how well your ship is sailing, and how the only direction for the value of their investment is likely to go up. So much so that they will be kicking themselves for a lifetime if they don’t act now.
Why is now the time for your key customers? Perhaps there are big contracts coming up for grabs. Such as in the huge pivot to EVs and alternative power.
Or is this about making yours the brand of choice? Think uber versus Lyft, or Myspace versus Facebook. Or securing new markets, massive partners, and even whole countries, like Pepsi versus Coca-Cola.
Are your customers on the brink of having to choose, and this is the moment to win them?
As with your traction slide, your financial forecasts can be used to show the coming curve and gains to be made.
No one wants to invest too late and miss the upswing.
If you already have existing financials from the past couple of years, they can also be used to back up your projections.
Amount Being Raised & Other Investors
Both the amount that you are raising in this round, and who else is participating can help make your story compelling.
Your amount being raised and the terms of the deal can make it a no-brainer or can show how confident you are, and how much you believe in going big on this right now.
Investors take clues from each other. They are always looking for a lead investor. Everyone wants to jump in and be a part of a successful round. Show who else is investing and believes in this in a big way.
Team & Advisors
Just like showing who else is investing their capital, the same applies to your core team and startup advisors. Show how these smart and experienced people with knowledge in this domain believe it is the time to do this.
Now you’ve built up to the climax; you can quickly recap, specifically spell out what action to take, and make your call to action.
The why now is one of the most important parts of any pitch or sales process.
Whether you choose to include a dedicated Why Now slide in a pitch deck, or not, it is a pivotal element that will make all the difference in getting funded, how fast your fundraising campaign goes, and the negotiating power you have in this process.
At each step of your pitch, and on many of your slides, you have the opportunity to strategically build in your why now. Don’t miss out on this if you want your next funding round to be a success.
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.