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If you're watching this you are probably in the process of pitching investors to
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raise money for your company.
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Did I get that right?
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I'm the CEO of a company called Slidebean
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I've not only managed to raise funding for our startup,
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but hundreds of companies have also used our templates to do so.
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Today we're gonna dig deep into:
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How to Create a Pitch Deck for Investors
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This will be a two-part video.
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We'll first look into the pitch decks structure.
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There's a pretty standardized pitch deck outline
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that most presentations follow,
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so we'll look at each slide
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and dig into what content you should include in each one of them.
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Then we'll look at some basic design guidelines
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to make sure your slides stand out.
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Remember, the pitch stick is the very first impression
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an investor might get on your business,
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and it should look stellar.
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Let's not reinvent the wheel here.
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Dozens of accelerators, venture funds,
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successful startups and internet personalities,
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have published their 'ideal' contents of a pitch deck.
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We took the liberty ofredesigning many of them
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and you can download most of them on the links below,
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but the truth is,
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they all have pretty much the same content.
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Pretty much every pitch deck follows this structure:
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For most of this section,
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I'm gonna use the Uber Pitch Deck as an example.
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Now the original version doesn't look particularly good,
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so we'll use our redesign version instead.
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Now, we all know the size of the company that Uber
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has become,
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so naturally this deck from back in 2008,
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has become one of the most sought-after references for Pitch Decks.
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Our redesigned version gets thousands of downloads every month
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I'll also quote a few others like our own Pitch Deck
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and the Airbnb Deck.
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This is where you present your case
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your problem and your premise,
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And your proposed solution.
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This is a critical part of your pitch
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because it will determine if you can capture
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an investor's attention for the rest of the presentation
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The cover slide
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There's little to add here on the structure so we'll look at some design tips later.
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The problem slide.
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So this is where you present the status quo.
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The founders of Uber made it very clear.
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Cabs in 2008 are far from a great user experience:
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they use aging and inefficient technology
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and hailing is done by a hand or by actual phone calls.
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I also love the way Airbnb summarized it
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in just three short sentences:
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-Price is important for travelers
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-Hotels are bubbles
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-There's no way to book a room with a local
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or to host a spare room in your apartment.
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This was the reality in 2009
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all they had was Craigslist and CouchSurfing
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and neither of those was a pleasant user experience.
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See how down-to-earth this problem has been summarized?
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No complicated jargon.
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No debatable arguments.
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100% straightforward verifiable claims.
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Creating empathy with your investors is critical at this point.
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If you offer a questionable statement,
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then the whole premise of your pitch will be doubted.
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If the problem you're trying to solve can be applied to them,
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then great, take advantage of that!
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If you're solving a problem for an entirely different audience
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then acknowledge it,
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and again make sure your premise is solid.
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The solution slide.
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The solution is quite obviously you and your company and your product.
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Mention three or four core functions of your product,
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and how they address the problems you just talked about.
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One important tip here is to once again avoid tech jargon
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think of benefits instead of features
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instead of saying we have a fully responsive editor
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rephrase that to you can edit your presentation everywhere even on your phone.
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This is a killer line right here
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The convenience of a cab in New York City,
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plus the experience of a professional chauffeur.
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The product demo
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There's a whole thing about product demo.
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If you're presenting live for example,
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then the product demo is actually a double edge sword.
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You risk the demo crashing
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and ruining your whole pitch,
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so maybe sticking with a video could be safer.
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If you're sharing the pitch with an investor via email,
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then a video capture is actually a nice courtesy
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and a way to guarantee,
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that they will get a glimpse of the product.
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You can't assume that they'll just go to your website
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create an account and check it out themselves.
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Finally if you're in an in-person meeting,
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following the flow yourself
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on the app or the product,
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might be the best choice.
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Remember in either case your video demo or your actual demo,
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should reach the 'aha' moment in 30 seconds or less.
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The why will make you rich section.
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if you manage to catch attention in the first minute or so,
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now it's time to prove while you're gonna make them rich.
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Remember, few investors,
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(actually no investors)
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will give you money because they like you,
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or because they like your team, or because they like your product.
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They'll do it because they believe
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your team led by your vision,
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can grasp this market opportunity,
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create a sizeable company,
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and more importantly,
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give them a sizable return on their investment.
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The Market Size.
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This is where you look at how large this company can become.
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Two ways to tackle it,
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with what it's called
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like an Bottom Up or a Top Down Market Approach.
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A Top-Down analysis is calculated by
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determining the total market
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then estimating your share of that market.
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So, a typical Top-Down analysis might go something like:
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If you're selling rubber ducks to everybody that can use them,
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there are maybe 500 thousand people in your area,
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and even if you only managed to land five percent of that market
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it'll make you twenty five thousand sales.
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A bottom-up analysis is
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calculated by estimating potential sales to determine a total sales figure.
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A bottom-up study evaluates where products can be sold,
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the sales of comparable products
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and the slice of current sales you can carve out.
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While it takes a lot more effort the result is usually much more accurate.
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There's a great Inc.com article that you can look into for more details.
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So, going back to our example
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Uber plan to start as a New York City and San Francisco service,
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which already made a 1.3 billion dollars per year market.
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Then they planned to expand to LA,
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Chicago, Houston, Pennsylvania and Dallas,
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which already makes up 50% of the US taxi market
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So based on this information they estimated three scenarios:
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Where they remain like a 10 car company,
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100 client service,
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just in one city.
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Where uber gets 5 percent of the top 5 US cities,
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which actually represents 20 to 30 million dollars per year in profit
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and then a best-case scenario where uber would become a market leader
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1 billion dollar plus a year in revenue.
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Who would have guessed that their
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prediction actually fell short of the type of company they became.
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The business model slide.
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Now the Pitch Deck Business Model slide is, in most cases,
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a slide that makes or breaks your pitch.
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I'm taking Airbnb example for this one
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whose business model is just dead simple
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they take a 10% commission on each transaction.
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That's it!
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Airbnb makes money in many other ways these days,
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but the premise remains.
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There's a percentage of each transaction.
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When dealing with a 500 million serviceable market,
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which is the amount of budget plus online trips worldwide,
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even a small portion of the equation yields just fantastic economics.
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The founders elaborated by making a rough estimate
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that's serving 15 percent of this addressable market
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would yield them $200 million worth of revenue in the first three years.
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A bold but eventually accurate prediction.
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We are working on a new video dedicated exclusively to studying
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and understanding powerful business model slides,
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so check out the link in the comments.
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The competition slide
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In this case I'm gonna use Slidebean example.
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This grid approach to comparing your company to your competitors was made
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famous by Steve Jobs
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when he used to compare the iPhone to any other phone available at a time.
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If you have a product that stands far apart from your competitors
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then, this is the best way to make sure everybody understands that premise.
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In our case the horizontal axis would be represented by time.
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Time required to make a presentation or a pitch deck
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and then quality of design we would put that on the vertical axis.
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Traditional presentation software
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like PowerPoint would have had an average design quality with terrible efficiency.
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Prezi for example provides somewhat better results
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at the cost of even more time.
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All the way up to the extreme,
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you can create a top-of-the-line presentation using Adobe Illustrator
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but this is a professional tool
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for professional designers.
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Slidebean niche is right here,
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where high quality meets efficiency,
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and with this diagram it's easy to see how it stands apart.
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Now that you understand how these work
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take alook at the Airbnb deck.
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In this case their axes are affordability and offline versus online transactions
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this differentiates Airbnb from hotels.com or CouchSurfing or Craigslist.
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The Underlying Magic or the Competitive Advantage
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The underlying magic slide,
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also referred to as the competitive advantage slide,
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is where you elaborate on the technologies and patents you've developed
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to make your product or service unique.
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Feel free to get much more technical on this slide.
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Going back to UBER,
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this is where they get to brag about the route optimization system
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their reputation tracking and the demand forecasting,
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that's right the surges.
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As much as we users hate that
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it's one of UBER's most powerful innovation.
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The Go-to-Market Plan.
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The go-to-market slides should refer to your plans
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to acquire a mass audience.
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Now the reality of any startup,
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is that there's no way to know how these plans will work,
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until you actually try them out.
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And you likely need to update this slide regularly,
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as you try and fail with different marketing tactics.
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it's essential, however, to remember and fake it till you make it.
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Always have a plan and pitch it
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as if you're a hundred percent sure that's the way to go.
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The point of this slide is proving that you can figure out
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ways to grow your business,
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both with a large pool of ideas
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and the ability to execute them.
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Airbnb slide refers to three alternatives,
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Events, partnerships and the dual posting feature.
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In the end,
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they never managed to make a deal with Kayak,
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but they hit the nail on the head
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with the dual posting function.
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In a nutshell,
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they developed a bot that would take any Airbnb listing
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reposted on Craigslist
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and link back to the original Airbnb post,
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thus increasing their traffic and awareness
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as well as the chances of getting a listing booked
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when they had fewer customers.
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The Team Slide
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And we're almost done now.
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This slide should be simple.
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Mention your founders and why are you
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the right people to grow this company.
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Remember the ideal founder combination
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is the hustler/hacker/hipster trio
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A hustler usually impersonated in the CEO
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that can sell the company
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and keep investors excited around it.
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A hacker often the CTO,