By Fernando Berrocal

The "Why Now" slide has always been important in your pitch deck, but in this market, it's the one that will get you the meeting.

Pitch decks have long been the key to securing an investment meeting. The secret is networking – conferences, meetings, and happy hours have all provided opportunities for warm introductions to venture capitalists. All of those in-person chances have vanished due to the present situation. This means that it's entirely up to your pitch deck to make your startup stand out to potential investors. 

Why is the "Why Now" slide so important?

The "Why Now" slide appeared roughly 54 percent of the time in ineffective decks versus 38 percent of the time in unsuccessful decks, according to research. Investors spent 36% more time on the "Why Now" slide-in decks that were eventually funded. It's a slide that investors will want to see, and a deck with a compelling "Why Now" slide will be more likely to get funded.

All of this is true in any circumstance, but it is particularly true during the COVID-19 crisis. According to the investors, they are giving their investing selections a lot more attention right now. While venture capitalists are actively investing, they are doing it in the context of the current state of the economy. Your objective is to persuade them that your startup is a good investment right now, and the "Why Now" slide is the vehicle for using it.

But, exactly. What is a "Why Now" slide?

The content and title of the "Why Now" slide in these decks vary, but the "Why Now" slide's goal remains consistent. The goal is to convince investors why now is the best moment to invest in your startup. 

The truth is that many pitch decks make this mistake. The first half is correct: Many "Why Now" slides end up being just "Why" slides. There's a reason why, according to a study, the "Why Now" slide should be placed between the "Problem" and "Solution" slides at the start of your pitch deck. This set of three slides works together to tee off your pitch properly. The purpose of the Problem slide should be to describe why your product exists. The "Why Now" slide then emphasizes the importance of this issue before hooking investors in with your answer on the next slide.

What makes a good “Why Now” slide?

The key is to make sure you're addressing the current section of the presentation. To do so, consider the following questions: Would this slide have been useful five years ago as well? Is it something you think will be relevant in five years? If you answered yes to either of these questions while looking at the content of your "Why Now" slide, make a change.

Ask yourself, for whatever situation you're dealing with, "What data is available to show that this is a very timely and present issue?" Examine the issue you've identified and see what data from this year you can use to emphasize it. Consider your product as a whole. Is there any technology or trend that your product uses that is gaining a lot of momentum or popularity? Is the product you're introducing in high demand right now? The "Why Now?" slide should include a snapshot of the present situation as well as a clear explanation of how your product or service fits into it.

Why “Why Now” now?

Investors are thinking considerably more about the present situation of startups and evaluating their investment selections much more seriously during this crisis. Don't rely on the investor to put your pitch into perspective with others they've seen. Take into consideration the new environment we've created as a consequence of COVID-19, and present them the data that demonstrates you've done your research to figure out how your startup fits into it. 

This isn't just a test to see whether you can persuade investors; you also need to know how your startup can prosper in the present economic climate — and if you're worried, you might want to reconsider your financial strategy.

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Many VCs offer the same advice to entrepreneurs. Satya Patel of Homebrew was recently interviewed. They recently completed their first transaction without ever meeting the entrepreneur in person. Satya offered the following advice to entrepreneurs: “The most important things to include [in your pitch deck] now are: 1) How the money will be spent and how long it will last; 2) Why the problem you’re solving will remain an urgent issue for potential customers, and 3) What the go-to-market strategy will be in a world where face-to-face interaction is limited”.

Take a step back and consider how the crisis is affecting your target market. Do you have any investors in your area? Or are they waiting and seeing how things go? To enable yourself the chance to emphasize to investors why your startup is a great investment right now, answer some of these questions first.

Conclusion:

It's never a waste of effort to explain to investors why your startup should be on their radar. In general, creating a feeling of urgency is a strong fundraising strategy. However, keep in mind that the fundraising industry is still adjusting to the new normal. This is because investors are paying greater attention to how startups are expected to perform in the present environment. During this situation, the "Why Now" slide helps you to meet investors where they are currently thinking and address any critical concerns before they have a chance to ask them.

Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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