Pitch Deck Teardown: Equals’ $16M Sequence A deck

It’s a uncommon startup that tears down its personal pitch deck, however that’s precisely what Equals did after it raised a $16 million Sequence A spherical. Equals’ mission is to not change the spreadsheet, however to make sure that a spreadsheet can do no matter its customers throw at it. As an inveterate spreadsheet person, that is an method that I can get behind — I’ve constructed whole software program options with extraordinarily advanced spreadsheets because the again finish.

Moreover, as a pitch deck connoisseur, I can even get behind the brilliant and daring design of Equals’ deck.

I notably loved a take I’ve not typically seen in deck design, which is breaking down the deck into two completely different sections: a pitch deck and an information deck. The latter supplies a breakdown of the corporate’s financials over seven slides, exhibiting ARR, lead-to-customer conversion charges, churn, and different figures. It’s a good suggestion: I typically advise startups to inform the story with phrases, then inform the identical story with numbers.

Let’s see what else there may be to like about this deck.

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We’re on the lookout for extra distinctive pitch decks to tear down, so if you wish to submit your personal, right here’s how you are able to do that.

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Slides on this deck

Figures from the 2 traction slides had been redacted, and there’s a lot of (redacted) information in a separate information deck. There aren’t any market measurement and go-to-market slides both, however we’ll get to that later.

1. Cowl slide
2. Opening assertion
3. Mission slide
4. Drawback slide
5. Resolution/mission slide
6. Product (“Meet Equals”)
7. Product demo slide
8. Product validation slide
9. Traction slide
10.   Traction 2 slide
11.   Product highlights slide
12.   Product roadmap slide
13.   Workforce slide
14.   Ask and use of funds slide
15.   Closing slide

Three issues to like

I’ve already given Equals kudos for the design, however this deck is hanging sufficient that it’s value mentioning once more: It is a handsome deck. Listed below are a couple of different issues that stood out to me:

Making it actual

For some time, it’s appeared as if the best approach to construct a profitable software program startup was to seek out one thing folks use Excel for, then construct a device that’s higher, extra targeted and simpler to make use of. That’s labored effectively for numerous companies, so it’s a daring endeavor to tackle Excel at its dwelling turf, by changing a spreadsheet with . . . a spreadsheet. Airtable has had some success on this house, so one of many first issues that springs to thoughts is whether or not there may be room for one more firm on this vertical.

Equals makes a complete and compelling argument for a convincing sure to that query by itemizing out a lot of use circumstances for its software program:

The issue appears actual sufficient, however it appears largely to do with the provenance of information and information evaluation/algorithms. And certain, Excel information may be difficult, however Excel itself has a comparatively strong on-line resolution as effectively now (so the assertion “Excel has not” feels barely hyperbolic). We even have Google Sheets, Airtable and a ton of different potential opponents within the house.

Nonetheless, within the dry and boring world of spreadsheets, that is most likely probably the most enjoyable approach to define the issue you’re making an attempt to resolve. I prefer it!

So it’s Excel, however extra on-line

Founders, particularly technical founders, typically face an incredible problem when making an attempt to clarify what their startup does in easy phrases. I’m actually impressed that Equals’ crew managed to distill the product all the way down to one thing this easy: Spreadsheets, however with database connections and collaboration. That quite simple assertion hides lots of technical complexity and what will need to have been an absolute nightmare of an integration problem.

However hiding the complexity is a good thought: The top customers don’t wish to know why their spreadsheet gained’t connect with the Stripe information supply. They only want it to work.

Fairly elegant. Very effectively performed.

That’s the way you map a path to the longer term!

Traders not often care about this stage of granularity in your product roadmap, however they’re not uncurious, you recognize? It is a nice tough overview of what you care about and doesn’t go into the weeds in regards to the nuts and bolts of what the engineering crew can be constructing.

Although this plan is fairly technical, I’m impressed by the crew’s potential to withstand the temptation to enter an excessive amount of right here. I’ve no thought what they’re going to hyperlink Command + Okay to, however it doesn’t actually matter — it is a nice top-level view that can let you could have a board-level dialog in regards to the product priorities for the subsequent 12 months.

Equals has additionally performed one thing intelligent with the previous slide: Slide 11 exhibits the options which have already been constructed, which then permits the narrative to stream evenly to this slide (with the prevailing options now highlighted in grey). This allows you to have a two-step dialog in regards to the product: Speak about the whole lot you’ve constructed, then discuss the whole lot you’re going to construct and the way that helps the product turn into extra related to your target market — and possibly develop the potential person base as effectively.

As a startup, you may be taught from this slide that you shouldn’t spend an excessive amount of time in your product. These two slides are an excellent instance of how one can sidestep that drawback with finesse.

In the remainder of this teardown, we’ll check out three issues Equals may have improved or performed in another way, together with its full pitch deck!

Three issues that might be improved

It’s not all rainbows and unicorns in Equals’ deck . . .

Be aware of your viewers

A fairly widespread drawback with pitch decks is that it’s generally exhausting to inform whether or not the founders perceive who they’re speaking to. Try this testimonials slide:

I’ve little doubt that it is a highly effective slide to make use of within the firm’s gross sales operation when speaking to new shoppers. However I’m undecided how efficient it’s as a part of an funding pitch.

I can see a number of points right here:

• I don’t know what any of these logos are. Okay high-quality, I acknowledged Notion, however I don’t know what Levity is or does, and I don’t acknowledge the V brand. That signifies that two of the three logos on this slide aren’t serving to persuade me to speculate. So why use them?
• Two quotes and one unaccredited set of statements don’t actually function a very sturdy set of testimonials.
• Within the closing testimonial, the road “I don’t see it going anyplace anytime quickly” may be simply misconstrued. I’m assuming the individual meant that their product is right here to remain, however that’s not 100% clear from the quote.
• It’s poor kind to have quotes with out correctly attributing them to somebody. Who stated these good issues? If it had been the CTO of an organization, you need to positively spotlight that. Give it some thought this manner: Should you attribute “It is a actually good product” to “an Apple worker,” would that be a very good factor? If Tim Prepare dinner stated it, that’d be fairly nice. If some random gross sales flunky in an Apple Retailer stated it . . . you recognize what I’m getting at.

General, this slide appears impartial at finest — at the least in terms of convincing an investor to speculate. So it’s most likely secure to simply go away it out of the deck altogether.

So . . . how massive is that this market?

Maybe I’m selecting at nits right here. Ask any investor, “If I can steal 30% of Excel’s enterprise, is the market large enough?” and also you’ll most likely get a convincing sure.

The factor is, this deck can also be lacking a go-to-market slide. Meaning Equals is lacking out on two alternatives to inform buyers the way it is considering its market. Who’re the purchasers? What number of of them are there? What’s the worth prop? How do you attain these prospects? How do you persuade them to remain? You’ll must reply that cadre of inquiries to efficiently increase cash — and it’s a bit of skinny on the bottom on this deck.

What are the targets, although?!

Traders aren’t on the lookout for a ballpark determine or a imprecise plan in terms of how your startup will use the funds raised. A well-crafted “use of funds” slide does extra than simply listing bills; it builds belief. By being clear about your monetary wants and the way they align with what you are promoting targets, you’re exhibiting potential buyers that you just’re not simply one other startup seeking to burn money. No, as an alternative, you’re a severe entrepreneur with a plan for development and a transparent imaginative and prescient for the longer term.

I do know many founders hit upon this crucial slide. Glamorous however pointless bills, a nebulous abyss of “miscellaneous” prices, and imprecise descriptions of how the funds can be used are only a few widespread pitfalls that may flip buyers away. Equals falls prey to such a lure: None of those targets are almost particular sufficient. The slide needs to be as clear and detailed as doable, keep away from generalizations, and give attention to particular, measurable, achievable, related and time-bound (SMART) targets.

• “Scale advertising and marketing”: Certain, however to what?
• “Scale success”: Sure, however what’s the aim? How are you aware you’re profitable?
• “Speed up tempo”: Effectively, sure, however for those who wrote 10 new items earlier than the fundraising and managed 11 afterward, you’ve hit that aim.

Be particular. Use your “use of funds” slide effectively. This isn’t the time for abstraction, however for daring, particular, quantified audacity. This slide is the place you spell out your imaginative and prescient in {dollars} and cents, and for those who do it accurately, it’s the place buyers will start to see their futures aligning with yours.

Crucially, a well-designed “use of funds” slide helps paint the image to your subsequent funding spherical. Should you hit all of the targets, are you able to increase the Sequence B? Nice! Does your plan set you up for achievement? Improbable!

This slide is sort of ineffective, which is such a disgrace. Larger precision right here would make fundraising so a lot simpler.

The total pitch deck

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