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Pitch Deck Format [Sequoia, YC & Guy Kawasaki]

The other day I had a virtual meeting with Vikas, the founder of a promising fintech startup. As we dove into the intricacies of his pitch deck, I could sense his excitement and apprehension in equal measure.


"I have a lot of ideas when it comes to financials, our market, traction, and everything that goes into a pitch deck," Vikas confessed. "But I don't know what I should include or omit. How do I keep it focused?"


I nodded, understanding his dilemma all too well. "Will you be presenting this deck to investors privately or submitting it to VC firms?" I asked.


"I'll be sending it to VC firms," Vikas replied.


"Then," I said, leaning forward, "we should build the deck in accordance with the pitch deck formats of VC firms like Sequoia, Y Combinator, and guidelines given by Guy Kawasaki."


Vikas's eyes lit up with newfound clarity. That evening, as I reflected on our conversation, I realized how many entrepreneurs might be grappling with similar challenges. So, I decided to pen down this comprehensive guide to educate my readers about the different pitch deck formats laid down by experts and their significance.

Understanding Pitch Deck Formats


A pitch deck is more than just a presentation; it's your startup's story, your vision, and your roadmap to success, all condensed into a compelling narrative. But with different investors and accelerators having their own preferences, it's crucial to understand the various pitch deck formats to maximize your chances of securing funding.


In this article, we'll explore three influential pitch deck formats:

1. The Sequoia Capital Pitch Deck Format

2. The Y Combinator (YC) Pitch Deck Format

3. Guy Kawasaki's 10/20/30 Rule for Pitch Decks


1. The Sequoia Capital Pitch Deck Format


Sequoia Capital, one of the most prestigious venture capital firms in Silicon Valley, has funded giants like Apple, Google, and Airbnb. Their pitch deck format is widely respected and emulated in the startup world.


The Sequoia pitch deck format consists of 10 key slides:


1. Company Purpose: Summarize your company's mission in one compelling sentence.

2. Problem: Clearly articulate the pain point your product addresses.

3. Solution: Explain how your product solves the problem.

4. Why Now: Describe the market conditions that make your solution timely and necessary.

5. Market Potential: Quantify your total addressable market (TAM).

6. Competition: Analyze your competitors and your unique advantages.

7. Product: Showcase your product and its key features.

8. Business Model: Explain how you make money.

9. Team: Introduce your key team members and their expertise.

10. Financials: Present your financial projections and key metrics.


Example: Let's say (hypothetically) Vikas's fintech startup, "PayEase," aims to simplify cross-border payments for small businesses in India. His Sequoia-format pitch deck might look like this:


1. Company Purpose: "PayEase enables seamless global transactions for India's small businesses."

2. Problem: "Small businesses in India lose 5-10% of international revenue to high transfer fees and unfavorable exchange rates."

3. Solution: "PayEase's AI-powered platform reduces transfer fees by 80% and provides real-time, market-best exchange rates."

4. Why Now: "India's cross-border trade is expected to reach $2 trillion by 2030, with SMEs contributing 40%."

5. Market Potential: "TAM of $80 billion in transfer fees for India's SME cross-border transactions by 2030."

6. Competition: "Unlike traditional banks (high fees) or crypto solutions (volatility), PayEase offers stability and affordability."

7. Product: "Our mobile app and web platform facilitate instant, low-cost international transfers in 100+ currencies."

8. Business Model: "We charge a 0.5% transaction fee, significantly lower than the industry average of 3-5%."

9. Team: "Our founders combine 30+ years of experience in fintech, AI, and international banking."

10. Financials: "Projecting $10M ARR by Year 3, with a 40% year-over-year growth rate."


2. The Y Combinator (YC) Pitch Deck Format


Y Combinator, the startup accelerator that has launched companies like Dropbox, Airbnb, and Stripe, recommends a more concise pitch deck format. The YC pitch deck format focuses on clarity and brevity, typically consisting of 10-15 slides.


Key components of the YC pitch deck format include:


1. Company Name and One-Line Description

2. The Problem

3. Your Solution

4. The Product (with demo or screenshots)

5. Traction and Milestones

6. Market Size

7. Competition

8. Business Model

9. Team

10. Fundraising Ask


Example: Continuing with Vikas's PayEase startup, here's how a YC-format pitch deck might look:


1. "PayEase: Empowering India's SMEs with Affordable Global Payments"

2. Problem: "Indian SMEs lose billions annually to expensive international transfers"

3. Solution: "AI-driven platform for low-cost, real-time cross-border payments"

4. Product: (Screenshots of the PayEase app showing its intuitive interface and real-time exchange rates)

5. Traction: "10,000 SMEs onboarded, $50M in transactions processed, 98% customer retention"

6. Market Size: "$80B TAM in SME cross-border transfer fees by 2030"

7. Competition: "Banks: Expensive, Slow | Crypto: Volatile | PayEase: Fast, Affordable, Stable"

8. Business Model: "0.5% per transaction, partnering with local banks for last-mile delivery"

9. Team: (Photos and brief bios of key team members)

10. Ask: "Seeking $5M seed round to scale operations and expand to Southeast Asia"


3. Guy Kawasaki's 10/20/30 Rule for Pitch Decks


Guy Kawasaki, a renowned entrepreneur and venture capitalist, proposes a simple yet effective rule for creating pitch decks: the 10/20/30 rule.


- 10 slides

- 20 minutes

- 30-point font minimum


Kawasaki's recommended 10 slides are:


1. Title

2. Problem/Opportunity

3. Value Proposition

4. Underlying Magic/Technology

5. Business Model

6. Go-to-Market Plan

7. Competitive Analysis

8. Management Team

9. Financial Projections and Key Metrics

10. Current Status, Accomplishments, Timeline, and Use of Funds


Example: Adapting PayEase's pitch to Kawasaki's format:


1. Title: "PayEase: Revolutionizing Cross-Border Payments for India's SMEs"

2. Problem: "SMEs lose 10% of international revenue to transfer fees and exchange rates"

3. Value Proposition: "80% cost reduction in international transfers with real-time rates"

4. Underlying Magic: "AI-powered currency matching and local bank partnerships"

5. Business Model: "0.5% transaction fee, B2B SaaS model for larger enterprises"

6. Go-to-Market: "Digital marketing, partnerships with SME associations, referral program"

7. Competitive Analysis: (2x2 matrix comparing PayEase with banks, fintech, and crypto solutions)

8. Management Team: (Brief bios highlighting relevant experience)

9. Financials: "Year 1: $1M ARR, Year 3: $10M ARR, 40% YoY growth"

10. Current Status: "Beta launch with 100 SMEs, seeking $5M to scale nationwide"


Choosing the Right Pitch Deck Format


While these formats offer valuable guidelines, remember that they're not one-size-fits-all solutions. The best pitch deck is one that tells your startup's unique story effectively. Here are some tips to help you choose and adapt the right format:


1. Study Your Audience: If you're pitching to Sequoia or applying to YC, following their respective formats can demonstrate your research and adaptability.


2. Emphasize Your Strengths: If you have impressive traction, make sure it's front and center, regardless of the format you choose.


3. Keep It Visual: Use charts, graphs, and product screenshots to break up text and convey information quickly.


4. Practice Storytelling: Whether you use 10 slides or 15, ensure your deck tells a compelling narrative about your startup's journey and vision.


5. Be Prepared to Adapt: Have a longer version of your deck ready for in-depth discussions, and a shorter one for quick pitches.


Remember Vikas and his fintech startup? By understanding these different formats, he was able to create a pitch deck that was not only informative but tailored to his target investors.


Whether you're a first-time founder like Vikas or a serial entrepreneur, mastering the art of the pitch deck is crucial. By understanding and adapting these proven pitch deck formats, you'll be well-equipped to create a presentation that captures investors' attention and communicates your startup's potential.


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Join entrepreneurs like Vikas who've boosted their pitches with our help. Reach out via our website's contact page or book a meeting with our consultants. Let's craft your standout deck together.

 
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