A pitch deck is a vital instrument used by businesses, startups, and entrepreneurs to acquire funds, lure customers, and attract investors. Whereas a vibrant business plan and a captivating tale are crucial, the businesses must integrate market data well in pitch deck to raise investors’ self-confidence, illustrate growth potential, and enhance trustworthiness.
Nonetheless, raw market data is hardly sufficient. It is the presentation and interpretation of such data that makes the difference. Various sites offer information on how a pitch deck can use market data to secure funding. You can check them out to find the most suitable website.
This article highlights and explains how to use market data effectively in your pitch deck to secure funding.
1. Start with a fascinating market outline
A market overview entails introducing industrial trends, scope, and size. Investors are interested in knowing the kind of a market where a firm conducts its businesses. As you draft a pitch deck, use credible data sources namely market research organizations, government information, and business reports to prove your points. You must prove that your business operates in a lucrative market.
Incorporate the following main features:
- The market demand for your commodities domestically or internationally
- The section of the overall market your business serves and can truthfully reach.
- The percentage of serviceable available market your business initially expects to capture.
Case Illustration
“The valuation of the worldwide water drilling and service industry is $10.00 billion. In the next 5 years, this industry is expected to grow at a CAGR of 7%. Our target market (West Africa) has a growing demand for manageable water solutions and denotes a $1.3 billion opportunity.”
2. Use data to validate the problem
The best pitch decks concisely define the problems a business intends to solve. Using market data, reinforce the reasons why the problems are of great concern and show why the time has come to tackle and solve them. It is important to use market trends, surveys, or statistics to highlight the industrial or consumer-related costs, the businesses or people affected, and the size of the problem.
Case Illustration
“More than 1.01 billion people cannot access clean drinking water. Besides, African rural businesses lose nearly $500 million yearly due to undependable water sources. Our company will offer borehole drilling solutions that ensure a sustainable, money-making fallback option.”
3. Show market timing and trends
Each type of investor wants a business to capitalize on market timing and trends. As you draft a pitch deck, illustrate industrial swings using market data to demonstrate your firm’s importance in the contemporary market. Market swings can be found from scientific developments, supervisory changes, and evolving buyer preferences.
Case Illustration
“The change towards sustainable renewable energy has increased the demand for off-grid water solutions. In the borehole drilling industry, a 20.02% growth in solar-powered pumps’ adoption has been reported in the last 2-3 years.” Link a business to the increasing market trend to show the investors the timeliness of the opportunity.
4. Distinguish your business using rivalry information
A business can be positioned effectively against rivals using market data. Show investors your attractiveness amongst other business rivals. The competitive data should be presented in a table. Include the weaknesses and strengths analysis and a breakdown of the market shares.
Case Illustration
Feature | Your Company | Competitor X | Competitor Y |
Water Purification | Yes | No | No |
Solar powered pumps | Yes | No | Yes |
Costs per borehole sunk | $4900 | $7100 | $6600 |
The table clearly shows your business’s comparative advantage over other market rivals.
5. Use market data to present revenue projections
Connect financial info to market data to make income forecasts more convincing. The predictions must be anchored on accurate market penetration assumptions instead of speculations. Link your revenue projections to market trends and the service obtainable market because investors are likely to scrutinize the figures.
Case Illustration
“Capturing only 6% of our $2 billion target market in the next four years will result in $120 million yearly revenue.”
6. Make data edible using graphics
Apply infographics, diagrams, and tables to characterize market data precisely. Using figures alone can occasionally be devastating. Examples of persuasive data visualizations include bar charts, line graphs, and pie charts. A pitch deck can be very effective when you use a good chart to illustrate a story in seconds.
7. Source and cite reliable data
The market data must be sound and detailed. When obtaining and quoting market data, use trustworthy sources such as Pro-Tip, market research organizations like Forrester and Gartner, government catalogues including National Statistics Agencies, UN, or World Bank, and industrial reports, namely Statista, IBISWorld, and McKinsey.
8. Use data to tell your story
To influence investors, you require framework instead of data alone. Connect figures to a swaying tale, but use the best narration approach to make your data passionately attractive and applicable.
Case Illustration
“In 2020, only 29.90% of Kenya’s rural communities accessed clean water. The number has increased to 44.5%, although millions struggle daily. Our company will offer innovative borehole solutions to bridge that gap, making it appealing to tap into this multi-billion-dollar market.”
Conclusion
A pitch deck with market data can make the demonstration very convincing, shape investor self-confidence, and fortify a business case. However, use market data strategically to differentiate from rivals, prove traction, validate problems, and show market size. Besides, use a data-driven account based on clear graphics and trustworthy sources. These will guarantee that your pitch deck gets capital and drive your business growth.