Pitch Deck Teardown: Equals’ $16M Collection 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 Collection A spherical. Equals’ mission is to not substitute the spreadsheet, however to make sure that a spreadsheet can do no matter its customers throw at it. As an inveterate spreadsheet consumer, that is an method that I can get behind — I’ve constructed complete software program options with extraordinarily advanced spreadsheets because the again finish.

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

I significantly loved a take I’ve not usually seen in deck design, which is breaking down the deck into two completely different sections: a pitch deck and a knowledge 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 usually 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.

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.

Slides on this deck

Figures from the 2 traction slides have been redacted, and there’s a lot of (redacted) knowledge in a separate knowledge 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. Downside slide
5. Answer/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.   Crew 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 putting sufficient that it’s price mentioning once more: This can be a handsome deck. Listed here are a couple of different issues that stood out to me:

Making it actual

For some time, it’s appeared as if the best solution to construct a profitable software program startup was to seek out one thing individuals use Excel for, then construct a instrument that’s higher, extra targeted and simpler to make use of. That’s labored properly for numerous companies, so it’s a daring enterprise to tackle Excel at its residence 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 an additional firm on this vertical.

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

[Slide 4] Right here’s an issue slide for you . . .  Picture Credit: Equals

The issue appears actual sufficient, however it appears largely to do with the provenance of knowledge and knowledge evaluation/algorithms. And certain, Excel recordsdata may be difficult, however Excel itself has a comparatively strong on-line resolution as properly 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 in all probability essentially the most enjoyable solution to define the issue you’re making an attempt to unravel. I prefer it!

So it’s Excel, however extra on-line

[Slide 6] Right here’s the place the magic occurs. Picture Credit: Equals

Founders, particularly technical founders, usually face an amazing problem when making an attempt to clarify what their startup does in easy phrases. I’m actually impressed that Equals’ staff managed to distill the product right down to one thing this straightforward: Spreadsheets, however with database connections and collaboration. That quite simple assertion hides a variety of technical complexity and what should have been an absolute nightmare of an integration problem.

However hiding the complexity is a superb concept: The tip customers don’t wish to know why their spreadsheet gained’t hook up with the Stripe knowledge supply. They simply want it to work.

Fairly elegant. Very properly executed.

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

[Slide 12] Such a good way to map your close to future. Picture Credit: Equals

Traders not often care about this degree of granularity in your product roadmap, however they’re not uncurious, you realize? This can be 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 staff can be constructing.

Regardless that this plan is fairly technical, I’m impressed by the staff’s capacity to withstand the temptation to enter an excessive amount of right here. I’ve no concept what they’re going to hyperlink Command + Ok to, however it doesn’t actually matter — it is a nice top-level view that can let you’ve gotten a board-level dialog in regards to the product priorities for the following yr.

Equals has additionally executed one thing intelligent with the previous slide: Slide 11 reveals the options which have already been constructed, which then permits the narrative to movement 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: Discuss every little thing you’ve constructed, then discuss every little thing you’re going to construct and the way that helps the product change into extra related to your target market — and perhaps develop the potential consumer base as properly.

As a startup, you’ll be able to be taught from this slide that you shouldn’t spend an excessive amount of time in your product. These two slides are a fantastic 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 executed otherwise, together with its full pitch deck!

Three issues that might be improved

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

Be conscious of your viewers

A reasonably widespread drawback with pitch decks is that it’s generally onerous to inform whether or not the founders perceive who they’re speaking to. Take a look at this testimonials slide:

[Slide 8] Yeah, however do the traders care? Picture Credit: Equals

I’ve little question 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 unsure 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 fantastic, I acknowledged Notion, however I do not 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 take a position. So why use them?
• Two quotes and one unaccredited set of statements don’t actually function a very sturdy set of testimonials.
• Within the last testimonial, the road “I don’t see it going anyplace anytime quickly” may be simply misconstrued. I’m assuming the particular person meant that their product is right here to remain, however that’s not 100% clear from the quote.
• It’s poor type to have quotes with out correctly attributing them to somebody. Who stated these good issues? If it have been the CTO of an organization, you need to positively spotlight that. Give it some thought this manner: Should you attribute “This can be a actually good product” to “an Apple worker,” would that be a great factor? If Tim Cook dinner stated it, that’d be fairly nice. If some random gross sales flunky in an Apple Retailer stated it . . . you realize what I’m getting at.

Total, this slide appears impartial at greatest — at the very least relating to convincing an investor to take a position. So it’s in all probability protected to simply depart 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 in all probability get a powerful 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 traders the way it is considering its market. Who’re the shoppers? 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 have to reply that cadre of inquiries to efficiently increase cash — and it’s somewhat skinny on the bottom on this deck.

What are the objectives, although?!

[Slide 14] Erm, certain, however that is approach too imprecise. Picture Credit: Equals

Traders usually are not on the lookout for a ballpark determine or a imprecise plan relating to how your startup will use the funds raised. A well-crafted “use of funds” slide does extra than simply checklist bills; it builds belief. By being clear about your monetary wants and the way they align with your small business objectives, you’re exhibiting potential traders that you simply’re not simply one other startup trying to burn money. No, as a substitute, you’re a critical entrepreneur with a plan for development and a transparent imaginative and prescient for the longer term.

I do know many founders locate this essential 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 traders away. Equals falls prey to such a lure: None of those objectives are practically particular sufficient. The slide must be as clear and detailed as attainable, keep away from generalizations, and give attention to particular, measurable, achievable, related and time-bound (SMART) objectives.

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

Be particular. Use your “use of funds” slide properly. 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 in the event you do it accurately, it’s the place traders will start to see their futures aligning with yours.

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

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

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