How to Write a Problem Statement for your Pitch Deck and land Investor Meetings

How to Write a Problem Statement for your Pitch Deck and land Investor Meetings

This blog dives into crafting a compelling problem statement that grabs investor attention and books those first meetings.

Learn actionable tips from a seasoned investor, discover common pitfalls to avoid, and leverage a powerful tool to refine your pitch deck.Time to jump in and find out.

Why the Problem Statement Transforms your Deck

Think of your pitch deck as a captivating story, and the problem statement as its opening scene. A strong problem statement sets the stage, grabs investors from the get-go, and makes them say "YES" to hearing more.

It's the pulse of your pitch, instantly conveying urgency and highlighting the critical issue your solution addresses.

On the other hand, a weak problem statement fails to capture attention. It leaves investors uninspired and disinterested, scrolling to the next slide and quickly deleting your email.

Dreamit Ventures, have witnessed thousands of pitches over a decade. Adam Dakin is the Managing Director at DreamIT and shares his battle-tested insights on crafting a problem statement so compelling, it books first investor meetings for pre-seed founders like you.

The Investor Mindset is in Triage Mode

Imagine an emergency room doctor. They don't have the luxury of spending time on every patient. Instead, they triage patients based on the severity of their condition, prioritizing those in most critical need.

Investors operate similarly. They are bombarded with startup pitches, all seeking funding. But, their time is precious. Just as the doctor wouldn't waste resources on a minor ailment, investors won't invest in solutions to fluffy problems.

Your problem statement is your chance to showcase the burning platform your solution addresses. You need to convince investors that your idea tackles a critical issue with significant impact, not just a minor inconvenience. This is why the problem statement is considered the most important slide in your pre-seed pitch deck.

Writing a Problem Statement that Makes Investors Sit Up and Listen

So, how do you write a problem statement that compels investors to lean in and hear more? Here are some actionable tips from Adam, based on his experience:

  • Ditch the Clichés and Look for "WOW": We've all heard the tired phrase, "[Industry] is broken." It's generic and fails to grab attention. Instead, hook investors with a powerful opening that highlights the problem's severity. Use a staggering statistic or a real-world scenario that paints a vivid picture of the pain point.

Pitch Deck Slide Example: A Dreamit company used this opening: "Did you know that globally, two jumbo jets full of people fall out of the sky every day? That's how many die from medical errors!" This powerful statement instantly sets the stage for their solution, a healthcare platform aimed at reducing medical error rates.

  • Numbers Speak Louder Than Words: Don't just tell investors about the problem; quantify its impact. Use clear numbers – market size, costs associated with the problem, or potential savings from your solution – to showcase the problem's scope and urgency.

Example: "Physicians spend over $80 billion annually due to manual EHR (Electronic Health Record) review, leading to misdiagnosis and burnout. Our solution can reduce their time by 75% and increase revenue by 100k!

  • Who Pays the Price? Investors care about solutions with a clear path to profitability. Explain who shoulders the burden of the problem and how your solution solves it in a way that benefits their bottom line.

Focus on the Decision-Makers: Identify the people who will champion your solution within their organization. Highlight the current system's limitations and how your solution makes their lives easier or more efficient.

  • Early and Often: The Power of the Cover Slide

Don't wait until later in your pitch to unveil your problem statement. Integrate it into your cover slide, the first impression you make on investors. Briefly summarize the problem, your solution's benefit, and any early traction you have (e.g., waitlist sign-ups, testimonials).

Weaving a Cohesive Narrative into your Pitch

While a compelling problem statement is crucial, it's just one piece of the puzzle. Remember, your pitch deck is a story. Each slide builds upon the previous one, culminating in a compelling narrative that captures investor imagination. Here are some additional tips to create a cohesive narrative around your problem statement:

  • Flow and Consistency: Ensure a smooth flow throughout your deck. Transition logically from the problem statement to your solution, then market opportunity, team, and financials. Maintain a consistent visual theme to enhance professionalism and clarity.
  • Data-Driven Storytelling: Back up your claims with data whenever possible. Statistics, market research, and user quotes lend credibility and strengthen your narrative. However, remember, data should support your story, not replace it.
  • Passionate Delivery: A well-crafted pitch deck is only half the battle. Practise your delivery beforehand to ensure confidence and enthusiasm. Investors want to see passion and belief in your vision, so let your excitement shine through.

Score My Deck is Your Pitch Deck Co-Pilot

Crafting a winning pitch deck can feel like navigating a financial jungle. Score My Deck can help you navigate this quagmire. The tool analyzes your deck, providing valuable feedback and suggestions to strengthen your problem statement and overall narrative.

Think of it as your investor in a box. Score My Deck acts like a seasoned investor, highlighting potential weaknesses and areas for improvement. It analyzes your problem statement's clarity, impact, and effectiveness in capturing investor interest.

Leveraging Adam's Investor Experience

Adam Dakin understands the challenges faced by pre-seed founders when fundraising. His experience helping countless startups secure funding gives him invaluable insights into what investors are looking for.

By combining Adam's expertise with the data-driven analysis of Score My Deck, you can create a pitch deck that not only books first investor meetings but also positions your pre-seed startup for success.

Remember: An impactful problem statement is the first step to securing the funding you need. Utilize these actionable tips, leverage Score My Deck, and watch your pitch deck transform into a magnet for investor interest.

Bonus Tip: Common Pitch Deck Pitfalls to Avoid

  • Lack of Focus: It's tempting to try to address every problem under the sun. Instead, maintain a laser focus on the one critical problem your solution tackles.
  • Technical Industry Jargon: Investors are not necessarily industry experts. Avoid technical jargon that may confuse them. Explain the problem and solution in clear, concise language that everyone can understand.
  • The Team Slide First: While your team is crucial, the problem itself is what makes or breaks the first call. Showcase the problem statement and its urgency before introducing your team as the solution providers.

The Road to Pre-Seed Funding Starts Here

Securing pre-seed funding is a crucial step to launching your startup dream. A powerful problem statement is the foundation for your pitch deck. Convince investors that your solution addresses a critical need with significant market potential.

By following these tips, taking advantage of tools like Score My Deck, and learning from the experiences of successful founders, you can create a pitch deck that stands out from the crowd and gets you those initial meetings. Remember, a compelling problem statement is your key to unlocking the door to investor interest and propelling your pre-seed startup towards success.