Which slide is both the least and the most important one in your pitch deck?
Answer: The market size slide
Why? Numbers are generally always overestimated but still something investors want to feel comfort around.
5 steps on how to make a great market size slide:
1) Don't google "Market size X" and pick the highest number you can find
Market reports seldom correspond 100% with what you are building, and often show bloated numbers.
Hence these numbers should not let investors question your judgement by being put into your deck.
2) Read about the market and collect data points
So what to do?
By founding a company you are becoming an expert in your specific niche.
A great start to build on the knowledge you already have is to collect specific data points related to your industry.
3) Do the math
Now when you have a bunch of interesting data points you can start to calculate your market size.
A VERY simplified formula being:
(Entities who experience a problem) x (What they would pay for a solution) = TAM (Total Addressable Market)
4) Sanity check
You have done the above and arrived at a conclusion.
Now try to find arguments to shoot this number down.
Is your solution really suitable for all SMEs? How valuable are other startups with a similar value prop?
Still makes sense -> put it in your slide.
5) Show your input data points & sources
Together with your final number show the figures / stats that led up to your estimate.
By doing so investors can arrive at the same conclusion you have, with the added bonus that you will showcase deep industry knowledge upfront.
Final remark:
Investors might (unfortunately) have a bias towards the market size of certain industries.
If you know the market is big AND you have sound data to back it up you will significantly minimise the risk of getting the "too small market" response!
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If you are a founder lacking a good network chances of you getting funding are lower.
But even if you didn't go to an ivy league school, or worked at a unicorn, you can still acquire one.
Twitter is perfect for that.
Step-by-step guide on building a network via Twitter >>
1. Assuming: A cold-start
The first few followers on any social media platform is always the hardest to acquire. But Twitter might be even harder given it is not necessarily "friend based".
If you do have friends / colleagues these should be the natural first additions.
2. Find like-minded people
But generally this wont take you far, and you need to start looking elsewhere.
Look for people with the same interest as you; be it vertical, stage, etc.
And potentially also with a similar starting point (i.e follower count)
The mythical creatures fundamental to the startup ecosystem.
But like most beings, they don't only come in one shape.
Time for a thread.
The 5 types of Angel Investors 😇:
(and the perfect mix of these for your startup)
1) The Connector
Often a previous investor, or a long-term angel investor. These individuals win bc of their strong network and the intros they can provide.
What you can get:
* Navigating VC funds
* Fundraising process
* Intros to other Angels
2) The Brand Name
Often a founder or an early employee for a tech company with high valuations > 1 BUSD. These people are generally quite busy and will be less hands-on.
What you can get:
* Creating buzz for an announcement
* Customer logo on your site
* Role model