E-commerce Pitch Deck

Objective of this Service:

Pitch decks are created by the entrepreneur to entice investors by showcasing the viability of an e-commerce business idea. A pitch deck is the first line of negotiations held with the investors to get adequate funding to get the business off the ground.

What is a Pitch Deck?

The pitch deck is a collection of slides or PowerPoint presentations that are used to pitch an e-commerce business idea to potential audiences, mainly venture capitalists or investors. In most cases, entrepreneurs succeed in acquiring seed capital for the business with a pitch deck.
A good pitch deck would consist of – the gist of the online service on offer, the marketing and sales strategy, and financial projections of the e-business. The pitch deck primarily seeks to enhance the interest of the investors by nudging them into the next round of financial negotiations. Most investors finalize funding for startups through multiple rounds of negotiations with the involvement of several stakeholders.

Components of “Investor Pitch Deck” for E-commerce Business

Now that we have understood the need for a pitch deck, let’s move to understand the essential components of an e-commerce pitch deck, here it is:

• E-commerce Niche: There isn’t anything that cannot be sold online. However, while beginning an e-commerce venture, it is prudent to focus on a specific category or niche that the venture would cater to. It could be food delivery, grocery, apparel, and so on. By focusing on a single niche and doing it well improves the scope of the business in the long-term. The pitch deck needs to spell out the niche category in which it is going to operate in.
• Digital Marketing: This is a recurring expense in an e-commerce business without which online visibility remains as good as nil. A good amount of focused investment for digital marketing improves the chances of business success. The pitch deck needs to clearly define how capital is going to be utilized on multiple channels to garner online visibility.
• Cost of Customer Acquisition (CCA): This is the expense incurred by the business in acquiring a customer. Online businesses must seek to keep CCA to the minimum while adopting strategies to retain customers. The pitch deck needs to be upfront about strategies to keep the CCA within control without it spiraling out of control.
• Burn Rate: Most startups do not break even for years altogether and need consistent support from investors to keep going. While this may be the norm, investors are always interested in the “Burn Rate” of a startup – the rate at which their invested capital is getting used up. If the burn rate stands higher than normal, the investor is likely to go slow with future investments. Alternatively, if the pitch deck spells out specific strategies to keep the burn rate within accepted standards, investors are more likely to show considerable interest.
• IT Strategy: Being an ecommerce business, investors are always on the look-out for IT strategy in the pitch deck. The pitch deck must have the overall IT strategy, the chosen platform, selected IT vendors, and the level of security the business offers. All this reinforces the viability of the online business idea without which investors may start having second thoughts about investing.
• Technical Expertise: A pitch deck is required to showcase, key individuals in critical positions in the e-commerce business. This can include an overview of their experience, qualifications, and exposure to technology, etc. Having names backed by good credentials can soothe the nerves of investors considerably.
• Demand Forecasting/ Analysis: This is a metric based on prediction and generally provides the overall demand for the immediate and long-term. This can be done by doing research on competitors and creating figures to match their emerging and ongoing demand pattern.
• Market Prioritization: While every business may seek to compete globally, it is best not to be doing so considering the logistics involved. While starting off, it is prudent to focus on markets where demand is relatively low and making in-roads into the market is easier. Focus on counties and provinces where there exists good scope for growth and enough demand to sustain for the long term. Elucidate this strongly in the pitch deck to make the business both practical and implementable.

Why is DFX the Best Partner to Develop an E-commerce Pitch Deck?

DFX is the leading name in conceiving and developing pitch decks for e-commerce businesses. We have helped a variety of businesses in different e-commerce niches to secure funding from known investors. We have experts who come with credentials of having developed pitch decks for a range of online businesses. DFX understands the intricacies and nuances involved in the creation of an e-commerce pitch deck. Ultimately, DFX can ensure your chances of succeeding at your pitch by a large margin.

Investor Pitch Deck

• Industry problem Highlights (i.e. Problem Statement)
• Secondary research (Market size, customer segment, and other demographics)
• Explaining solution which is simple to understand and it can be correlated with problem.
• Solution in terms of product or service which is addressing the problem.
• Value proposition and highlighting key features.

• Competitive advantage – Quadrant axis map
• Other players in the market Segment of Competition
• Customer acquisition strategies
• Strategy differentiators
• Scope within the funding projection

• Team behind the project
• Important phases of your venture journey (past, present and future), which may also include details about Proof of concept, existing customer testimonials (if available), etc

Information Memorandum

• Describing the Company
• Opportunities and challenges
• Describing the products, moat and execution strategy
• SWOT analysis

• Describing the team, principles and culture
• Highlighting their relevant achievements in professional, educational, and social space
• Mention founders and core team – all important teams managing major functions in the company

• Competition & market share analysis,
• Volumes and margins growth,
• Profit & Loss statement, Cash Flow statement,
• ROCE, CAGR, EBIDTA

• Business Valuation Strategy
• Income Based (DCF Approach)
• Net Asset Based Approach (Income Tax v/s Market Depreciation Methods)
• Market Based (Recent Deals Comparison & Listed Deals Comparison)

• Investor rights and duties
• Terms of payment
• Details of ownership transfer
• Investor exit clause
• Agreement Termination clause