Market information for your Pitch Deck
In this edition I want to answer a question I get quite often:
“What market information should I put on my pitch deck?”
When creating a pitch deck, the market slide is crucial in demonstrating the potential of your business to investors. It should convey a clear and compelling picture of the market opportunity.
Here’s what you should include:
1. Market size with CAGR and 5-year projection
- Provide the current market size in dollar terms. This sets the stage by showing the scale of the opportunity.
- Highlight the market’s growth rate over the past few years and the expected CAGR for the next five years.
- Present a projection of the market size five years into the future, using the CAGR to support your estimates.
2. TAM, SAM, SOM – Never forget them!
- TAM: The total market demand for your product or service if you achieved 100% market share, based on industry reports, government data, and market research.
- SAM: The portion of the TAM that you can target based on your business model, geographical reach, and product type.
- SOM: The realistic market share you can capture in the short term, depending on competition, market entry strategy, and execution capability.
3. Target Market
- Define the specific groups or segments within your SAM that you will target first.
- Describe the key characteristics of your target market, such as demographics, location, needs, and buying behavior.
4. Competitive Landscape
- List the main competitors in your market.
- Show how you position your product against these competitors.
- Highlight your unique selling propositions (USPs).
That’s it! The rest if for you market analysis and competitive analysis separate documents in your Data Room.
Feel free to adapt and expand on these points based on your specific business and industry needs.